Analysis and Evaluation for Core Competence of Insurance Company Based on SEM

Abstract

Evaluation the core competence reasonably plays an important role in the insurance company, it is related to whether the insurance can maintain a stable long-term competitive advantage or not, and whether obtain a stable long-term excess profits or not. In this paper, we select 6 first-degree indexes (including the core competence) and 28 second-degree indexes to evaluate the core competence of insurance company by Structural Equation Model (SEM), and analysis the relationships among the first-degree indexes. Besides, we use a new algorithm proposed by us to improve the calculation of SEM.