Research On The Efficiency Of Life Insurance Capital Utilization And Its Influencing Factors In China

As one of the "three pillars" of the financial industry,insurance undertakes important responsibilities such as risk diversification,capital financing and social stability.The total assets of life insurance in China account for more than 80% of the whole insurance industry and are in an absolute dominant position.With the continuous development of China’s life insurance business,the expansion of the scale of life insurance funds,and the expansion of life insurance funds investment channels,China’s life insurance funds have broad prospects for use.However,in recent years,the domestic economic downturn,the continuous downward trend of interest rates,the scarcity of high-quality assets and even the impact of the "post-epidemic era" have caused a considerable impact on the use of life insurance funds in China.Therefore,this paper separates life insurance funds from all insurance funds and analyzes the efficiency of their use and the factors affecting them.Firstly,this paper introduces the concept,source and nature of life insurance funds as well as the principles of life insurance funds utilization,and details the relevant theories and evaluation methods of life insurance funds utilization efficiency,laying a theoretical foundation for this research.Secondly,this paper collects relevant data on the use of life insurance funds in China from 2012-2022,reveals the results of the use of life insurance funds in China and analyzes them from the perspectives of fund scale,investment return rate and asset allocation structure.Again,this paper constructs a resource-based two-stage DEA model to measure the capital raising stage efficiency,capital return stage efficiency and overall stage efficiency of life insurance companies in China through empirical analysis,and compares the empirically derived data from the perspectives of Chinese/foreign life insurance companies,large/small and medium-sized life insurance companies.Next,five factors are hypothesized to affect the efficiency of life insurance capital utilization in China,and the Tobit regression model is used to test the degree of influence of these five factors on the efficiency of life insurance capital utilization.The empirical results show that: i.The overall level of life insurance capital utilization efficiency in China is low.Second,the degree of influence of each factor on the efficiency of life insurance capital utilization varies.Among them,the establishment of a professional life insurance asset management company is significantly positively correlated,and the proportion of bank deposits is significantly negatively correlated.At the end of this paper,suggestions are made to address the problems identified above:improve the life insurance capital utilization system and establish professional life insurance asset management companies;pay attention to the cultivation of high-quality talents and enhance the professionalism of life insurance company employees;strengthen the risk management ability of life insurance companies and focus on risk prevention and control;adjust the market structure and improve the regulatory system;expand life insurance capital utilization channels and optimize the asset allocation structure.