Research on Total Factor Productivity of Chinese and Foreign Life Insurance Industry - Analysis Based on DEA and Malmquist Model

Wang Zhengyin ； Wang Yan ； Miao Yuna

《IETI Transactions on Social Sciences and Humanities》 8卷 (2020/06) Pp. 15-23

https://doi.org/10.6896/IETITSSH.202006_8.0003

摘要

Total factor productivity (TFP) is the core issue in economics research, and also an important goal of life insurance industry in management. Total factor productivity of life insurance industry is one of the important factors that directly affect its sustainable development. Since China's insurance market has been fully opened to foreign insurance companieson December 11, 2004, the entry of foreign life insurance companies has brought new vitality to China, and also brought greater competition for the breadth and depth of China's insurance market opening. Therefore, how to improve the total factor productivity of life insurance companies, rational use and allocation of resources, will become the key to enhance competitiveness. Therefore, it is of practical significance for the development of Chinese insurance industry to study and compare the total factor productivity of Chinese life insurance industry with that of foreign capital. In this paper, the Malmquist index method of DEA model was adopted to conduct empirical analysis on a total of 15 companies, including 7 Chinese life insurance companies and 8 foreign life insurance companies. The data were selected from 2009 to 2019. Then the Malmquist index was decomposed into efficiency change、 technology change、 pure efficiency change and scale efficiency change index to compare and analyze the Chinese life insurance industry and foreign life insurance industry. The results show that in the 9 years from 2009 to 2019, the total factor productivity of foreign-funded life insurance industry is generally higher than that of chinese-funded life insurance industry.

關鍵字

Life Insurance Industry ； Total Factor Productivity ； DEA-Malmquist