Efficiency of Life Insurance Companies: An Empirical Study in Mainland China and Taiwan

Hwai Shuh Shieh*, Jin Li Hu, Yong Ze Ang

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

The study employs metafrontier and four-stage data envelopment analysis (DEA) to measure the overall and individual efficiency of life insurance companies in mainland China and Taiwan, after applying the slack-based measure (SBM)-DEA model to adjust the differences in the operating environment across production units. The empirical findings show the following: (a) The environmental factors significantly affected the efficiency of all life insurance companies. After the adjustments, the efficiency score of life insurance companies in mainland China and Taiwan drops for 14.01% and 26.64% in regional frontier, and 38.31% and 12.22% in metafrontier frontier. (b) Before 2008, the life insurance companies in Taiwan are more efficient than those in mainland China.

Original languageEnglish
Article number2158244020902060
JournalSAGE Open
Volume10
Issue number1
DOIs
StatePublished - 11 Feb 2020

Keywords

  • data envelopment analysis (DEA)
  • efficiency
  • four-stage DEA
  • metafrontier
  • slack-based measure (SBM)

Fingerprint Dive into the research topics of 'Efficiency of Life Insurance Companies: An Empirical Study in Mainland China and Taiwan'. Together they form a unique fingerprint.

Cite this