A DEA‐investigation of efficiency of the Indian general insurance during recession

A DEA‐investigation of efficiency of the Indian general insurance during recession Purpose – The purpose of this paper is to investigate the efficiency analysis of the Indian general insurance sector using data envelopment analysis (DEA) and subsequently assess the impact (if any) of the global slowdown on the performance of the allied sector. Design/methodology/approach – The paper aims to analyze the operating performance of 12 general insurance companies in India between 2006‐2007 and 2009‐2010 using DEA based on secondary data collected from Insurance Regulatory and Development Authority Annual Reports. Findings – Findings clearly indicate that the global economic slowdown has severely affected the performance of the private sector companies; while the public sector companies exhibited relatively lesser variation in performance levels. Research limitations/implications – The methodology employed in the study estimates relative efficiencies without assuming any functional form; as a result the proper comparison of input utilized with the output produced is not possible. Several other tools like Malmquist Index and two‐stage procedure have not been used. Originality/value – The study brings into light the operating characteristics and efficiencies of the Indian general insurance sector during the global slowdown and therefore holds practical value for policy makers and practitioners as well as for the decision makers of the firms employed in the study. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Advances in Management Research Emerald Publishing

A DEA‐investigation of efficiency of the Indian general insurance during recession

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Publisher
Emerald Publishing
Copyright
Copyright © 2014 Emerald Group Publishing Limited. All rights reserved.
ISSN
0972-7981
D.O.I.
10.1108/JAMR-07-2012-0030
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to investigate the efficiency analysis of the Indian general insurance sector using data envelopment analysis (DEA) and subsequently assess the impact (if any) of the global slowdown on the performance of the allied sector. Design/methodology/approach – The paper aims to analyze the operating performance of 12 general insurance companies in India between 2006‐2007 and 2009‐2010 using DEA based on secondary data collected from Insurance Regulatory and Development Authority Annual Reports. Findings – Findings clearly indicate that the global economic slowdown has severely affected the performance of the private sector companies; while the public sector companies exhibited relatively lesser variation in performance levels. Research limitations/implications – The methodology employed in the study estimates relative efficiencies without assuming any functional form; as a result the proper comparison of input utilized with the output produced is not possible. Several other tools like Malmquist Index and two‐stage procedure have not been used. Originality/value – The study brings into light the operating characteristics and efficiencies of the Indian general insurance sector during the global slowdown and therefore holds practical value for policy makers and practitioners as well as for the decision makers of the firms employed in the study.

Journal

Journal of Advances in Management ResearchEmerald Publishing

Published: Apr 29, 2014

Keywords: Data envelopment analysis; Recession; Efficiency analysis; India general insurance sector; Non‐parametric analysis

References

  • Efficiency in the Greek insurance industry
    Barros, C.; Milton, P.; Assaf, A.
  • Efficiency of financial institutions: international survey and directions for future research
    Berger, A.; Humphry, D.
  • Financial intermediary versus production approach to efficiency of marketing distribution systems and organizational structure of insurance companies
    Brockett, P.L.; Cooper, W.W.; Golden, L.L.; Rousseau, J.J.; Wang, Y.
  • The demise of the mutual organizational form: an investigation of the life insurance industry
    Erhemjamts, O.; Leverty, J.T.
  • Efficiency decomposition in two‐stage data envelopment analysis: an application to non‐life insurance companies in Taiwan
    Kao, C.; Hwang, S.
  • Estimation and inference in two‐stage, semi‐parametric models of production processes
    Simar, L.; Wilson, P.W.
  • Simultaneous analysis of production and investment performance of Canadian life and health insurance companies using data envelopment analysis
    Wu, D.; Zijiang, Y.; Sandra, V.; Liang, L.

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