TECHNICAL, PURE TECHNICAL AND SCALE EFFICIENCY ANALYSIS OF INSURANCE COMPANIES OF PAKISTAN

Abstract

We examine the technical, pure technical, scale and mix efficiencies for a sample of 25 general insurance companies of Pakistan over a period of 2002-2007, using CCR and BCC models of nonparametric frontier approach, data envelopment analysis (DEA). The objective is to provide new insights in value-based technical efficiency of Pakistani general insurance companies. The results show that most of the insurance companies are technical, scale and mix inefficient and the major cause of this inefficiency is excess in labor and shortfall in claims-settled amount.

Keywords: Insurance, Pure technical, Scale efficiency, Technical


Article Review Status: Published

Pages: 82-92 (Download PDF)

Creative Commons Licence
This work by European American Journals is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License