The Chinese insurance market is expanding along with economic growth. However, it is supposed that the competitiveness of the market is still low as state-owned companies have a considerable share. This study aims to consider the competitiveness of the Chinese insurance market by making use of financial data from 2002 to 2011. Firstly we estimate the translog cost function for insurance companies to check the scale economy of the Chinese insurance market. Secondly, we check the competitiveness of the Chinese insurance market using mainly Panzar-Rosse’s H-statistic. The result of the analysis showed that there is little evidence of scale economy, and that the situation remained unchanged for both the property insurance and life insurance markets in spite of changes in institutions and market conditions. The Herfindahl-Hirschman Index (HHI) also indicates that competition is becoming more severe in both of the Chinese insurance markets. The H-statistic further indicates that neither of the Chinese insurance markets have been monopolistic.