Abstract
Based on the framework of industrial organization, the paper adopts the Translog model to determine the scale and scope economies of the property-liability insurance industry in China. We make use of the data of all insurers in China between 2012 and 2014 and use the insurance claims and premium to measure the output of the industry. The result of the model reveals that when measuring insurance claims as output, all insurers exhibit economies of scale, except for the result of large insurers in 2013. When measuring premium as output, large insurers exhibit diseconomies of scale, while small insurers have economies of scale. In general, operating multiple product line leads to scope economy.
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