An Empirical Study On The Measurement And Influencing Factors Of Operating Efficiency Of Life Insurance Industry In China

With the advancement of national policies Insurance plays a increasingly important role in the financial industry,which promotes the rapid development of the economy.Life insurance industry has experienced rapid development since the reform and opening up After China's accession to the WTO,the life insurance industry continues to promote the policy of opening to the outside world,the upper limit of foreign ownership of life insurance companies in China from the previous 51 percent to 2020 no longer set limits A large number of foreign life insurance companies will continue to pour into the Chinese market,resulting in fierce competition in the market.Moreover,since the separation of property insurance from life insurance,the life insurance industry has been operating in an extensive manner,with scale and speed as the main objectives,and the short-term behavior of companies is also serious,and input and output have not been effectively controlled,resulting in low operating efficiency of the life insurance industry.In this case,the study of the operating efficiency of the life insurance industry and influencing factors,to improve their overall strength and competitiveness,as well as the sustainable development of the insurance market is of great significance.Based on the theory and evaluation method of efficiency,this paper uses the input oriented three-stage DEA model,eliminates the influence of environmental variables and error factors,and measures the efficiency of 29 life insurance companies with the relevant data from 2012 to 2018.And the impact of environmental variables on the scale efficiency is greater than the impact of pure technical efficiency,and then build a random effects panel Tobit model,using full sample data to study the factors affecting operating efficiency.We find that the level of corporate governance and the level of risk management have a significant negative correlation with the operating efficiency and scale efficiency,while the size of the company,product structure and market share have a significant positive correlation with the operating efficiency,while the product structure and market share have no significant effecton the scale efficiency,and the staff quality and operating time have no significant effect on the operating efficiency and pure technical efficiency.In addition,according to the comparative analysis of the influencing factors between Chinese-funded and foreign-funded life insurance companies,the scale of available companies is significantly positively correlated with Chinese-funded companies,but significantly negatively correlated with foreign-funded companies.The level of risk management is significantly negatively correlated with Chinese-funded companies,but not correlated with foreign-funded companies.Finally,the paper puts forward some suggestions on how to change the management idea of focusing on scale,how to strengthen the localization construction of foreign capital,how to stabilize the management,how to control the cost reasonably and reduce the rate of cost,and how to promote the reform of educational system,pay attention to the cultivation of practical ability and improve the ability of controlling risks.