Abstract:
The purpose of this paper is to investigate how insurers’ cost efficiency changed after the implementation of C-ROSS relative to the first-generation system (C-SI). Based on the data from 2013-2015, we evaluate the cost efficiency of China non-life insurers by using an econometric model with intermediate outputs. By comparing the efficiency scores and shadow prices of intermediate activities, we find that: 1) The financial intermediation activities are over used in both C-ROSS and C-SI so that it is likely to further reduce costs by decreasing the quantities of these activities; 2) The risk management activities, although being improved, still have large potential to be utilized to improve insurers’ cost efficiency, especially for small insurers; 3) The overall efficiency score changed very small. The results suggest that Chinese non-life insurers should spend more effort to improve their risk management abilities and diversify investment risks in order to improve cost efficiency.
周桦, 张娟. 偿付能力监管制度改革与保险公司成本效率——基于中国财险市场的经验数据[J]. 金融研究, 2017, 442(4): 128-142.
ZHOU Hua, ZHANG Juan. Reform of Insurance Solvency Supervision and Cost Efficiency of Insurers:On the Data of China’s Non-Life Insurance Market. Journal of Financial Research, 2017, 442(4): 128-142.
Banker, R. D. and R. Natarajan, 2008, “Evaluating Contextual Variables Affecting Productivity Using Data Envelopment Analysis,”Operations Research, 56, pp. 48~58.
Banker, R. D. and R. Natarajan, 2008, “Evaluating Contextual Variables Affecting Productivity Using Data Envelopment Analysis,”Operations Research, 56, pp. 48~58.
[8]
Barth, J. R., G. Caprio Jr, and R. Levine, 2004, “Bank Regulation and Supervision: What Works Best,”Journal of Financial Intermediation, 13, pp. 205~248.
Barth, J. R., G. Caprio Jr, and R. Levine, 2004, “Bank Regulation and Supervision: What Works Best,”Journal of Financial Intermediation, 13, pp. 205~248.
[9]
Barth, J. R., C. Lin, Y. Ma, J. Seade, and F. M. Song, 2013, “Do Bank Regulation, Supervision and Monitoring Enhance or Impede Bank Efficiency,”Journal of Banking and Finance, 37, pp. 2879~2892.
Barth, J. R., C. Lin, Y. Ma, J. Seade, and F. M. Song, 2013, “Do Bank Regulation, Supervision and Monitoring Enhance or Impede Bank Efficiency,”Journal of Banking and Finance, 37, pp. 2879~2892.
[10]
Battese, G.E. and T. Coelli, 1995, “A Model for Technical Inefficiency Effects in Stochastic Frontier Production Function for Panel Data,” Empirical Economics, 20, pp. 325~332.
Battese, G.E. and T. Coelli, 1995, “A Model for Technical Inefficiency Effects in Stochastic Frontier Production Function for Panel Data,” Empirical Economics, 20, pp. 325~332.
[11]
Cummins, J.D., G.Dionne, R. Gagné, and A. H. Nouira, 2009, “Efficiency of Insurance Firms with Endogenous Risk Management and Financial Intermediation Activities,” Journal of Productivity Analysis, 32(2), pp. 145~159.
Cummins, J.D., G.Dionne, R. Gagné, and A. H. Nouira, 2009, “Efficiency of Insurance Firms with Endogenous Risk Management and Financial Intermediation Activities,” Journal of Productivity Analysis, 32(2), pp. 145~159.
[12]
Cummins, J.D. and G. P. Nini, 2002, “Optimal Capital Utilization by Financial Firms: Evidence from the Property-Liability Insurance Industry,”Journal of Financial Services Research, 21, pp. 15~53.
Cummins, J.D. and G. P. Nini, 2002, “Optimal Capital Utilization by Financial Firms: Evidence from the Property-Liability Insurance Industry,”Journal of Financial Services Research, 21, pp. 15~53.
[13]
Cummins, J.D. and M. Rubio-Misas, 2006, “Deregulation, Consolidation, and Efficiency: Evidence from the Spanish Insurance Industry,” Journal of Money, 38(2), pp. 323~355.
Cummins, J.D. and M. Rubio-Misas, 2006, “Deregulation, Consolidation, and Efficiency: Evidence from the Spanish Insurance Industry,” Journal of Money, 38(2), pp. 323~355.
[14]
Cummins, J.D. and M.A. Weiss, 1993, “Measuring Cost Efficiency in the Property-Liability Insurance Industry,”Journal of Banking and Finance, 17, pp. 463~481.
Cummins, J.D. and M.A. Weiss, 1993, “Measuring Cost Efficiency in the Property-Liability Insurance Industry,”Journal of Banking and Finance, 17, pp. 463~481.
[15]
Cummins, J.D., M.A. Weiss, and H. Zi, 1999, “Organizational Form and Efficiency: The Coexistence of Stock and Mutual Property-Liability Insurers,”Management Science, 45(9), pp. 1254~1269.
Cummins, J.D., M.A. Weiss, and H. Zi, 1999, “Organizational Form and Efficiency: The Coexistence of Stock and Mutual Property-Liability Insurers,”Management Science, 45(9), pp. 1254~1269.
[16]
Cummins, J.D. and X. Xie, 2008, “Mergers and Acquisitions in the US Property-liability Insurance Industry: Productivity and Efficiency Effects,” Journal of Banking and Finance, 32, pp. 30~55.
Cummins, J.D. and X. Xie, 2008, “Mergers and Acquisitions in the US Property-liability Insurance Industry: Productivity and Efficiency Effects,” Journal of Banking and Finance, 32, pp. 30~55.
[17]
Cummins, J.D. and X. Xie, 2013, “Efficiency, Productivity, and Scale Economies in the U.S. Property-liability Insurance Industry,” Journal of Productivity Analysis, 39, pp. 141~164.
Cummins, J.D. and X. Xie, 2013, “Efficiency, Productivity, and Scale Economies in the U.S. Property-liability Insurance Industry,” Journal of Productivity Analysis, 39, pp. 141~164.
[18]
Cummins, J.D. and H. Zi, 1998, “Comparison of Frontier Efficiency Methods: An Application to the U.S. Life Insurance Industry,” Journal of Productivity Analysis, 10(2), pp. 131~152.
Cummins, J.D. and H. Zi, 1998, “Comparison of Frontier Efficiency Methods: An Application to the U.S. Life Insurance Industry,” Journal of Productivity Analysis, 10(2), pp. 131~152.
[19]
Gardner, L. A., and M. F. Grace, 1993, “X-Efficiency in the USLife Insurance Industry,” Journal of Banking and Finance, 17, pp. 497~510.
Gardner, L. A., and M. F. Grace, 1993, “X-Efficiency in the USLife Insurance Industry,” Journal of Banking and Finance, 17, pp. 497~510.
[20]
Greene, W. H. and D. Segal, 2004, “Profitability and Efficiency in the U.S. Life Insurance Industry,” Journal of Productivity Analysis, 21(3), pp. 229~247.
Greene, W. H. and D. Segal, 2004, “Profitability and Efficiency in the U.S. Life Insurance Industry,” Journal of Productivity Analysis, 21(3), pp. 229~247.
[21]
Halvorsen, R. and T. R. Smith, 1991, “A Test of the Theory of Exhaustible Resources,”The Quarterly Journal of Economics, 106(1), pp. 123~140.
Halvorsen, R. and T. R. Smith, 1991, “A Test of the Theory of Exhaustible Resources,”The Quarterly Journal of Economics, 106(1), pp. 123~140.
[22]
Jametti, M. and T. V. Ungern-Sternberg, 2005, “Assessing the Efficiency of an Insurance Provider—A Measurement Error Approach,” Geneva Risk and Insurance Review, 30, pp. 15~34.
Jametti, M. and T. V. Ungern-Sternberg, 2005, “Assessing the Efficiency of an Insurance Provider—A Measurement Error Approach,” Geneva Risk and Insurance Review, 30, pp. 15~34.
[23]
Klomp, J. and H. Haan, 2012, “Banking Risk and Regulation: Does One Size Fit All,”Journal of Banking and Finance, 36, pp. 3197~3212.
Klomp, J. and H. Haan, 2012, “Banking Risk and Regulation: Does One Size Fit All,”Journal of Banking and Finance, 36, pp. 3197~3212.
[24]
Klumpes, Paul J. M., 2004, “Performance Benchmarking in Financial Services: Evidence from the UK Life Insurance Industry,”The Journal of Business, 77(2), pp. 257~273.
Klumpes, Paul J. M., 2004, “Performance Benchmarking in Financial Services: Evidence from the UK Life Insurance Industry,”The Journal of Business, 77(2), pp. 257~273.
[25]
Laeven, L. and R. Levine, 2009, “Bank Governance, Regulation and Risk Taking,”Journal of Financial Economics, 93, pp. 259~275.
Laeven, L. and R. Levine, 2009, “Bank Governance, Regulation and Risk Taking,”Journal of Financial Economics, 93, pp. 259~275.
[26]
Yuengert, A. M., 1993, “The Measurement of Efficiency in Life Insurance: Estimates of A Mixed Normal-Gamma Error Model,”Journal of Banking and Finance, 17, pp. 483~496.
Yuengert, A. M., 1993, “The Measurement of Efficiency in Life Insurance: Estimates of A Mixed Normal-Gamma Error Model,”Journal of Banking and Finance, 17, pp. 483~496.
[27]
Zhao,Y.,2014,“China’s C-ROSS: A New Solvency System Down the Road,”The Actuary Magazine 11(1),pp.15~18.
Zhao,Y.,2014,“China’s C-ROSS: A New Solvency System Down the Road,”The Actuary Magazine 11(1),pp.15~18.