Research On The Operational Efficiency Of China’s Property Insurance Companies Under The Marketization Of Automobile Insurance Rates

In 2015,with the promulgation of the 《 Pilot Work Plan for Deepening the Reform of the Commercial Vehicle Insurance Terms and Rate Management System Reform 》,the market-oriented reform of the auto insurance market in China was officially launched and promoted nationwide in 2016.In the process of rate-based marketization,the operating efficiency of insurance companies is an indicator worth paying attention to,because the level of operating efficiency is related to the operating conditions of insurance companies and the degree to which insurance functions are performed.This article first introduces the reasons,ideas and main course of the market-based reform of auto insurance premium rates,and then focuses on the analysis of the competitive game relationship between insurers and between insurers and intermediaries in the context of market-oriented rates.The mechanism by which marketization of rates affects the operating efficiency of property insurance companies.Based on this,the DEA model is used to measure the comprehensive technical efficiency,pure technical efficiency,scale efficiency,and Malmquist index of 30 property and casualty insurance companies in China from 2014 to 2018.The empirical results show that China’s property and casualty insurance companies before and after the auto insurance fee reform The changes in the indicator data of various aspects of operating efficiency are then empirically analyzed using the efficiency value of each property insurance company measured by the DEA method as the explanatory variable,and the marketization of rate as the explanatory variable.Finally,based on the mechanism analysis and empirical research,several conclusions were reached,and related policy suggestions were put forward.