Most relevant papers which evaluated efficiency used the quantification data as the variable. Ignoring the qualitative variables, such as service quality and policy quality. Therefore, this paper takes the ratio of claims and the ratio of cancellation and lapse which measure efficiency into output variables as another index. So, this paper used the data envelopment analysis of the nonparametric approach as fundamental structure, including graph efficiency measurement and directional output distance function, in order to treat the problem which is in the presence of desirable outputs and undesirable outputs simultaneously. 　In view of this, this study employs Data Envelopment Analysis, take the 19 insurance companies in Taiwan between 1999 and 2006 as the reseach samples, and inversigates the operation performance and technical efficiency on the insurance industry in Taiwan.The input variables are number of employees, total fixed assets; the output variables are liability reserve loans、the ratio of claims and the ratio of cancellation and lapse. The verification results show the operation performance on BankTaiwan Life Insurance Co. and Cathay life Insurance Co. is the best. Through t-test analysis, these ways exist the significant difference. Using Kendall’τ, the performance ranking in the total evaluation period based on Analysis ways are relevant.