Measurement of Operating Efficiency of Property Insurance Companies in China

The operation of property insurance companies is directly related to the healthy and stable development of insurance industry. Based on the operating data of 38 property insurance companies from 2009 to 2014, we observed the change trend of total factor productivity through the Malmquist index. On this basis, we constructed Super-SBM DEA model (Slacks-based measure of super-efficiency in data envelopment analysis developed by Tone) to measure the operating efficiency of 38 property insurance companies. The research shows that the total factor productivity of property insurance companies showed a downward trend on the whole during the sample period. The operating efficiency of property insurance companies in China is at a low level. The operating efficiency of domestic property insurance companies is higher than that of foreign companies. There were significant differences in Super-SBM efficiency values among insurance companies.