Analyzing Operating Efficiencies of the Non-Life Insurance Companies in Taiwan

• Main Authors: Chen,Shih-Hsiang, 陳世翔
• Other Authors: LI,YANG
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/3936g5

碩士 === 國立高雄大學 === 國際高階經營管理碩士在職專班(IEMBA) === 106 === Countries of the world has been introducing more flexible monetary regulation policies in the 1980’s, financial liberalization has became a trend, and due to the fact that Taiwan had been participating in the world-wide market, Taiwan opened the insurance market in 1994. However, under the highly competitive environment of the market, profit shrinkage exacerbates . Nevertheless, when the financial crisis in 2008 has created a low interest-rate environment which caused many insurance companies to lose profit, Taiwanese insurance market faced difficult challenges as the financial crisis spreads throughout the world. Under such highly competitive environment, Taiwanese government and insurance companies should understand the operating efficiencies of insurances. This academic approach is based on fourteen Taiwanese insurance companies for the study and the applied research method is Data Envelopment Analysis (DEA) in order to measure the technical efficiency. The outcome of the research showed that the domestic non-life insurance company should improve their technical efficiency and put the profits of the premium income, reinsurance income and other income in priority, where the insurance companies will ameliorate their technical efficiency in-order to gain profit with strategy diversification. Throughout the research also finds: 1.) Non-financial insurance companies rely twice as heavy on premium incomes as other financial insurance companies. 2.) Foreign capital non-life insurance companies has an obvious advantage of reinsurance expenditure weights over non-foreign capital non-life insurance companies, which shows that the foreign direct invested companies values more of the overseas reinsurance market to dilute the business risks.