The Operation Performance of China's Agricultural Insurance Companies: Growth, Diversification, and Cross-regional Business

Firstly, this study descriptive analysis the changes of the scale expansion, the diversification of business lines, and the geographical scope of Chinese agricultural insurance companies. Secondly, through panel data analysis, this study finds there are though decreasing but still obvious economies of scale, and obvious economies of scope. Thirdly, through the regression test, this study finds: The company size has no significantly influence on neither scale economies nor scope economies. The proportion of agricultural insurance business influences the scale economies negative and significantly, influences the scale economies positive and significantly. The influence of the degree of cross-regional business to scope economies is negative and significantly. Finally, the empirical results suggest Chinese agricultural insurance companies expand the scale, carry on business diversification, and expand business area, in order to enhance or keep the benefits of scale and scope economies. Those also require the supports from the policy-makers.