The Operational Efficiency Analysis of Life Insurance in Taiwan─From the View of Integrating DEA and Neural-Network

• Main Authors: DING, SHIH-CHUNG, 丁世昌
• Other Authors: GOO, YEONG-JIA
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/43144971816977253167

碩士 === 國立臺北大學 === 企業管理學系 === 91 === The entry barriers of the Taiwan life insurance market have been reduced substantially under the government’s liberalization policy. It makes more life insurance companies join this market as well as gradually changing the market structure from an oligopoly market to a perfect competition market. Therefore, the purposes of the operational efficiency evaluation are to help those insurance companies to review their management drawbacks in addition to better knowing the present situation of their business. Following this, they can then undertake market variation studies as well as any necessary precautionary measures. Most of the scholars have used the efficiency analysis to analyze management efficiency in the past, however, the limitation of this theory makes the evaluation results deviated. Here we take Wang’s “Adaptive Stochastic Frontier Function”, which was published in 2003, to analyze management efficiency. This function applies a non-linear character of neural- network and then link up advantages of other efficiency measurement methods, hence, the efficiency frontier which is produced by this function is much more objective. After considering all the correlate factors, we selected those companies which are the top twelve for their insurance premium income of year 2001 as the research samples. We chose insurance premium and investment income as the proxy variables of output, and the number of inside and outside officers and SA&D fee as the input variables in our analysis. The results are: (1) the number of the companies which were evaluated as an efficient company by ASFF were more than DEA; (2) the average efficient value which was calculated by ASFF was higher than DEA, and the insurance premium income was higher than investment income; (3) it was discovered by Spearman rank order analysis that the list of ranking of management efficiency of ASFF and DEA are different. It will be necessary to use other correlate measurement methods to compare and analyze to get more complete and objective results of management efficiency of Taiwan Life Insurance Industry.