Analysising efficiency in China and foreign insurance firms based on utility Malmquist index

This paper based on utility theory, use expected utility maximization principle, combined with the Malmquist index to find the optimal efficiency of decision making unit and apply it to analysis the efficiency change in China and foreign property insurance companies in China from 2008 to 2009. The results indicate that this method is also suitable for the insurance industry. What's more, the utility index of China property insurance companies is significantly higher than foreign property insurance companies property insurance companies, the utility approach fits closer to the practice than the input approach and can give more reasonable economic explanation.