Using Two-Stage DEA to Measure Operating Efficiency of Life Insurance Companies in Taiwan

• Main Authors: Li-Chen Yu, 游麗真
• Other Authors: Tong-Liang Kao
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/24780405786835881622

碩士 === 淡江大學 === 保險學系保險經營碩士班 === 93 === This dissertation employs two-stage data envelopment analysis (DEA) to measure the comparative and scale efficiency of 27 life insurance companies in 2003 in Taiwan. First, we divide life insurance production process into two stages, i.e. marketing stage and profit-making stage, and measure their efficiency separately. We find that two-stage DEA can provide more information and present the strength and weakness of respective life insurance company than that of traditional single-stage DEA. Next, we use the Malmquist DEA to measure the change of efficiency of 23 life insurance companies over the period 1996-2003, which can provide helpful information for the companies to plan their competitive strategy in the future. Finally, we further use tobit regression to analyze the key factor influenced by different factors. This finding can be provided for life insurance companies to select proper management strategies to enhance its operation efficiency.