The Efficiency Evaluation of Property Insurance Companies Based on Two-stage Correlative DEA Models

On the basis of the efficiency analysis of the DEA theory and the property insurance industry, this paper uses the two-stage correlative DEA models of the variation coefficient weighting method to evaluate the technical, the pure technical and the scale efficiencies from 2006 to 2010 of the 34 property insurance companies of China, including 5 large Chinese-funded property insurance companies, 18 small and mediumsized Chinese-funded property insurance companies and 11 foreign-funded property insurance companies, and finds that the efficiency of property insurance companies in the stages of premium creation and fund allocation is unsatisfactory. With the advantage of scale and domestic competition, the efficiency of Chinese-funded property insurance companies is better than that of foreign-funded ones in the stage of premium creation, but worse in the stage of fund allocation for foreign-funded ones have more experience of circulation of funds. And a further research indicates that the development of economy will stimulate the development of the property insurance industry, but won't have a direct effect on the efficiency promotion of the property insurance company. And the tax system of the insurance industry, the changes of interest rate and the oligopolistic market structure of the insurance industry will make an impact on the business efficiency of property insurance companies. Besides, unlike other research findings, this paper comes to a new conclusion that the proportion of highly educated people in the property insurance company has no significant influence on its business efficiency.