As noted earlier, the Chinese life insurance industry is facing mounting competition in this highly competitive era. To cope with the challenges and to sustain growth in this dynamic and knowledge-intensive industry, these life insurers must depend on their resources, that is, both their tangible and intangible assets. In other words, they must recognize and utilize their IC to be more efficient. From either resource-based or knowledge-based theory, there should be a positive relationship between IC and operating efficiency in the life insurance industry. Based on the above discussion, we thus state the hypotheses, in alternate form, as follows: