International Conference on Engineering and Business Management (EBM 2010 PAPERBACK)

Chengdu,China,China,3.24-3.26,2010

ISBN: 978-1-935068-05-1 Scientific Research Publishing, USA

Paperback 6066pp Pub. Date: March 2010

Category: Engineering

Price: $280

Title: Performance and Solvency of China’s Insurance Companies Based on Cone Ratio Envelopment Model
Source: International Conference on Engineering and Business Management (EBM 2010 PAPERBACK) (pp 3786-3793)
Author(s): Hui-Chun Huang, College of Economics and Management, Nanjing Agricultural University, Nanjing, 210095, P. R. China
Xin-Liang Zhu, College of Economics and Management, Nanjing Agricultural University, Nanjing, 210095, P. R. China
Bao-Jin Chu, College of Economics and Management, Nanjing Agricultural University, Nanjing, 210095, P. R. China
Abstract: Abstract: Performance and solvency is a primary concern for regulators of insurance companies. This paper examines the performance and solvency of 59 China’s insurance companies from 2004 to 2007 using Cone Ratio model, which expands the DEA basic CCR model through data transformations. Asset risk, pricing risk, interest risk and management risk are included in the model in order to evaluate the performance and solvency of insurance companies in terms of risk coverage and efficiency. The result shows that the average of CR efficiency of China’s insurance companies is lower than CCR efficiency; insurance companies can be more effective by reducing inputs, and get more outputs when they are cone ratio effective; CR efficiency and the changes of CR efficiency compared to CCR efficiency are associated with asset-liability ratio.
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