Corporate governance and efficiency performance in China’s life insurance industry: a configuration analysis based on DEA-fsQCA

Abstract While China has emerged as a leading Asian insurance market, research on improving operational efficiency (OE) in its insurance sector remains limited. This study employs two-stage network data envelopment analysis (DEA) to measure efficiency across 81 Chinese life insurers (2011–2020), ide...

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Bibliographic Details
Main Authors: Yi Xie, Rozaimah Zainudin, Nurul Shahnaz Mahdzan
Format: Article
Language:English
Published: SpringerOpen 2025-06-01
Series:Future Business Journal
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Online Access:https://doi.org/10.1186/s43093-025-00555-1
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Summary:Abstract While China has emerged as a leading Asian insurance market, research on improving operational efficiency (OE) in its insurance sector remains limited. This study employs two-stage network data envelopment analysis (DEA) to measure efficiency across 81 Chinese life insurers (2011–2020), identifying improvement pathways through necessary condition analysis (NCA) and fuzzy-set qualitative comparative analysis (fsQCA). Our findings reveal improving but suboptimal OE, with state-owned enterprises showing higher performance in premium acquisition but lower performance in distribution efficiency than non-SOEs. We identify four high-efficiency configurational paths, with firm age consistently appearing as a necessary condition. Results reveal that state-owned life insurers require comprehensive governance arrangements, while non-state insurers can achieve efficiency through multiple pathways, with firm age emerging as a necessary condition across all high-efficiency configurations. This study advances the understanding of efficiency determinants in emerging insurance markets through its configuration analysis.
ISSN:2314-7210