However, none of the prior studies specifically investigated the operating efficiency of a life insurer using a dynamic production process. In today's dynamic business world, life insurance companies must focus on changes in operating performance over long time periods. The capital3 allocation and planning processes are of central importance for life insurance companies [18]. Efficient resource allocation can provide a life insurer with a competitive advantage that can sustain its business over time. Several methods such as window analysis [19] and the Malmquist index [20] are effective for evaluating efficiency changes over time. However, to deal with the long-term dynamic process of a company, the dynamic slack-based measure (DSBM) model developed by Tone and Tsutsui [21] is particularly suitable because it incorporates carry-over activities into the model and enables researchers to measure period-specific efficiency based on long time optimization [20], [21], [22], [23] and [24]. Thus, this paper aims to examine the operating efficiency of China's insurance companies using the DSBM model in the first stage.