Abstract

In August 2014，the state council issued“Several Opinions on Speeding-up the Development of Modern Insurance Industry”（hereinafter referred to as“opinions”）that requires the insurance serving to modernize“national management system and management ability”.In fact，looking around the world，the insurance is crucial for any modern country because it designs risk management plans for the whole society and provides effectively guards against systemic risk.Insurance is the fundamental institutional arrangement of market economy.It is also an important symbol of the level of economic development and the civilization degree of the society.Our country faces to build a well-off society in an all-round way in 2020 and the continued downward pressure of the economic development.Under the circumstance，it is very meaningful for the insurance industry to serve the development of the real economy through giving full play to its own function.

From the risk spectrum of insurance，more than 80% of the insurable risk is covered by the property insurance.This means that the development of a sound risk management system and the social management function of insurance as well as the improvement of the economic compensation mechanism is largely dependent on the property insurance industry，while the core of the development of property insurance lies in the business.The key point is whether it is able to provide sufficient products to cover the transferred risk from the whole society.The promotion of underwriting capacity and service determines not only the success or failure of the development of the industry，but also whether the expectation of“opinions”on the insurance industry could be realized.Therefore，it is very necessary to deeply analyze and investigate on the business structure of international and national property insurance companies，then put forward the optimization adjustment scheme suitable for Chinaƴs property insurance company at the current development stage.

According to the experience of the international developed insurance market，the development degree of a property insurance market is directly affected by a countryƴs economic development level.The data analysis of seven sample property insurance markets of USA，Canada，Germany，UK，France，Japan and Korea shows that the rapid development of the property insurance market is also accompanied with the speed development of the national economy.In addition，the history of the property insurance market is longer，the maturity level is higher，the business structure is more balanced，that is，the business lines are diversified，the business ratio of each type is relatively balanced，the coverage range of risk is large and the dispersion degree is high.There are four consistent business categories：short-term health and accident insurance，motor vehicle insurance，property loss insurance and liability insurance among the six countries： USA，Canada，Germany，UK，France and Japan.However，the short-term health and accident insurance possesses occupies an absolutely large part（more than 70%） of the property insurance market of Korea.The phenomenon is very obvious，most probably because the market develops for a relatively short time，it is still in the business adjustment stage and the business curve is fluctuant.In comparison，the most balanced and most stable business structure of the property insurance is UK，which market has the longest history.

By a brief review of the development course of Chinaƴs property insurance industry，it can be found that the development of Chinaƴs property insurance industry has been deeply imprinted by a brand of the system.The generation and development of its business structure are closely connected with the history of the industry.The property insurance was firstly developed since the resumption in 1980.The number of the property insurance companies increases to more than 80 now from only one （Peopleƴs Insurance Company of China）in the early.The business model undergoes the mixed operation before 1995，the strict separated operation during 1996—2002，and then a moderate easing of separate operation after 2003.After several adjustments and continuous improvement，the scope of business is basically stabilized at the 14 business categories since 2008：the enterprise property insurance，the family property insurance，motor vehicle insurance，liability insurance，engineering insurance，cargo insurance，marine insurance，credit insurance，guarantee insurance，special risk insurance，agricultural insurance，short-term health insurance，accident insurance and other property in-surance business.However，the development is not balanced among different business categories.From the beginning of 1996，motor vehicle insurance occupies the highest business ratio in Chinaƴs property insurance business.It accounts for more than 70% or much higher during the past twenty years.This situation leads to the companyƴs resources and risk highly concentrated on one point.Moreover，the dependence on a single business and the homogenization of products cause the distortion of the market competition.The problem is becoming more and more serious so that it has hindered the sustained and healthy development of the property insurance industry.

After the horizontal comparison and longitudinal analysis，Chinaƴs existing business structure is investigated deeply.Further，the external and internal factors that impact the business structure of Chinaƴs property insurance company are studied.No matter from the external policy environment，insurance demand，or from the companyƴs intrinsic motivation，that the business structure needs to be optimized is undoubtedly，and the key problem is how to adjust.In order to answer this question，with the companyƴs efficiency as the optimization goal，and paying attention to the companyƴs solvency simultaneously，using the statistical data provided by Chinese Insurance Yearbook，the empirical study is employed.

First of all，we compute the companyƴs management efficiency by the threestage RAM model.Then according to the companyƴs solvency adequacy ratio and the concentration of business respectively，the efficiency scores are separated into two different groups under each criterion.Using Mann-Whitney rank-order test，the results show that： there is no obvious difference between the two different solvency groups at management efficiency value； but the management efficiency is different significantly between the two groups of different concentration of business.Where the concentration of business is described by Herfindahl-Hirschman Index（referred to as HHI），that is an alternative variable of the business structure.

Next，with the solvency adequacy ratio and the companyƴs efficiency as the dependent variables respectively，and with the business ratios of 6 business categories[enterprise property insurance，motor vehicle insurance，liability insurance，credit guarantee insurance（merged），agricultural insurance，short-term health and accident insurance（merged）]merged by 8 kinds of business as independent variables，the regression analysis of panel data is conducted.The regression results are obtained under the control of other internal and external influential factors.The empirical results show that the trend of the influence of the business structure to the companyƴs solvency and efficiency is consistent，and the solvency emerges a positive correlation to the efficiency.The motor vehicle insurance business shows a significant negative effect on the efficiency，and its contribution to the solvency adequacy ratio is also small，the results suggest that the adjustment on the motor vehicle insurance should be considered.No matter with the solvency adequacy ratio as the dependent variable，or with the companyƴs efficiency as the dependent variable，the credit guarantee insurance business categories combined by credit insurance and guarantee insurance shows a very significant positive impact.Note that both the credit insurance and the guarantee insurance are the risk management approaches of credit risk，they are consistent in risk sources.From the original data，the dominant one is the guarantee insurance between two kinds of business lines.There is nearly half of the company without credit insurance business.It indicates that，currently，the company vigorously develops the guarantee insurance can significantly improve its corporate management efficiency，and also can improve the solvency of the company.Itƴs worthy to mention that guarantee insurance is a business providing direct service to the entity economic development，in line with the national current needs on the economic transformation and upgrading.From the perspective of practice，it also may have very good development prospects.

The contribution and innovation of the monograph is mainly reflected in the following aspects.First，two optimization targets，solvency and efficiency，are considered simultaneously in the study of the business structure adjustment problem.We find that there exists a positive correlation between the two goals by empirical analysis.Using the above six business ratios as explanatory variables，a specific reference for the structural adjustment scheme of the business is obtained.Second，based on the facts that both the input indices and the output indices have negative values，the traditional DEA model cannot be adopted.Therefore，the three-stage RAM efficiency measure is proposed to modelling the companyƴs management efficiency after excluding the environmental factors.Since there is no ready-made calculation software available for this improved model，the Lingo11 program code is written to compute the efficiency，which contributes a lot to break through the restriction of traditional models and construct a new framework in the related research field.Third，the selection of the input and output indices is more comprehensive，and the business structure is creatively chosen as an input index in order to examine and analyze its effects on the efficiency.The analyzing results show that the business structure does have a significant impact on the efficiency.Fourth，using the non-oriented Super SBM-V model with variable return on the scale，comparable super efficiency scores are obtained through calculation.Taking them as values of the dependent variable （efficiency），the specific effects of the business structure to the companyƴs efficiency are achieved by regression analysis.Fifth，the monograph points out that the balanced business structure due to collective effects of foreign property insurance companies is not because of the individual balanced business structure，but of focusing on the different business.That has an important reference value for making business development strategy decision of Chinaƴs property insurance companies.Sixth，based on the international experience，under certain assumptions，the optimization intervals of business occupied ratios and the business structure optimization adjustment scheme has been given，which provides a good reference for the practice of Chinaƴs property insurance company.

Although during the research process，the author tries to make in-depth analysis from a plurality of theory，method and practice point of view，but because of the limitation of knowledge，ability and data availability，this study still remains a somewhat subjective optimization goal setting，less sample data and other defects.Any valuable comments and corrections will be much appreciated.

* This monograph is supported by the Research Funds for the Key Research Base of Humanities and Social Sciences of Ministry of Education（No.15JJD790046）.