The Influence of Insurance is Open to The Public on the Efficiency of Chinese Insurance Companies

Abstract

This paper will analyze China's open policy of insurance. Then through the statistical data from the premium income, asset strength, personnel, operating characteristics and bottlenecks of development of both foreign and Chinese insurance companies, this paper superficially analyzes the effect of the open policy to Chinese insurance companies. Then this paper use actual degree of openness to calculate China’s insurance openness. And use DEA to calculate Chinese insurance companies’ efficiency. Finally through the empirical analysis, we get following conclusions: (1) By analyzes the data of the past 15 years, the improvement of insurance openness has a significant negative correlation with Chinese property insurance companies. It shows that under the open policy of insurance, the operation of Chinese property companies is threatened, and they have not found a good way to improve their operating efficiency. (2) Under the open policy of insurance, the impact brought by the policy content change of opening the Compulsory vehicle liability insurance market to foreign investors has obvious negative effect on the operating efficiency of Chinese property insurance companies, which indicates that the operating efficiency of Chinese property insurance companies, which mainly bring income from Vehicle insurance, has obviously decreased after the policy change. The impact brought by the change of shareholding ratio policy of foreign life insurance companies in the open policy of insurance has positive effect on the operating efficiency of Chinese life insurance companies, which indicates that the operating efficiency of Chinese life insurance companies has increased after the promulgation of the policy.