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The Competitiveness is a key of the continuous development of insurance companies, while the efficiency embodies the competitiveness. Applying Data envelopment analysis (DEA) method, this essay worked out the figures of technical efficiency, pure technical efficiency and scale efficiency. After the analysis, it is found that the insurance industry has a fatal problem on wasting resources due to both low scale efficiency and pure technical efficiency which usually exist in the domestic insurance industry. After China entered WTO, the daily management standard of the whole insurance industry did not improve markedly, although the international market changes.