A Performance Study of the Taiwanese Insurance Industry

• Main Authors: Chuan-Wei Wang, 王川威
• Other Authors: Shinn Sun
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/50908032463896227039

碩士 === 真理大學 === 管理科學研究所 === 93 === The purpose of this study is two-fold: (1) to assess the performance of Taiwanese life insurance and non-life industries over 1994-2003, using a two stage approach; and (2) to examine productivity growth of the insurance industry. The first stage uses Slack-based measure-Assurance Region Data Envelopment Analysis (SBM-AR DEA) to separately assess overall performance of 24 life insurance companies and 17 non-life insurance companies. The second stage uses SBM-AR to assess these insurance companies in term of profitability and marketability. In addition, cross efficiency measure（CEM）is utilized to identify the best practice and Bilateral DEA model is used to compare national–operated companies with foreign-operated companies in terms of overall and individual performances. Finally, SBM-liked Malmquist index is employed to examine productivity growth of these industries. Results of this study show: (1) Average technical efficiency, pure technical efficiency, and scale efficiency scores of life insurance companies are 76.97%, 85.74%, and 90.11%, respectively. Life insurance companies are rated 82.83% for profitability and 84.44% for marketability. American Life Insurance Company is rated as the best practice under CEM. Foreign-operated companies perform better than national-operated companies. 9 companies have reached total productivity growth. (2) Average technical efficiency, pure technical efficiency, and scale efficiency scores of non-life insurance companies are 87.14%, 95.16%, and 91.67%, respectively. Life insurance companies are rated 92.75% for profitability and 79.12% for marketability. The Insurance Company of North America Taipei Brach is rated as the best practice under CEM. Foreign-operated companies perform better than national-operated companies. 10 companies have reached TFP growth.