The Operating Performance of Agricultural Insurance Companies: Empirical Analysis for China

Abstract

Sustainable operation of agricultural insurance companies is crucial for the sustainable development of agricultural insurance in China, and whether agricultural insurance companies can operate sustainably is fully reflected in their operating performance. Grey correlation analysis is a method that can do effective treatment for small sample, little data, uncertainty, multi-variable input, discrete data, and incomplete data, and measure the degree of relations between different factors. Because of limited number of agricultural insurance company in China, gray relational analysis is utilized to assess their operating performance. Empirical results show that the overall level of performance of agricultural insurance companies is good, but contribution of each factor to the performance was not significant. Strong government support is the key that agricultural insurance companies had good performances. Mutual agricultural insurance is full of vitality, but development of foreign agricultural insurance is not optimistic. In order to improve operational efficiency effectively, agricultural insurance company should adopt holistic development strategies.