Economics at your fingertips  

The importance of efficiency for life insurer profit: A study of Canadian life insurance companies

William Wise

Theoretical and Applied Economics, 2018, vol. XXV, issue 4(617), Winter, 179-204

Abstract: Only six studies, of more than two hundred and sixty observed concerning life insurance company (LIC) efficiency, truly examine how efficiency affects profits. Four show inefficiency greatly affects LIC (financial) outcome and survivorship. This clearly indicates that LIC efficiency is crucial to assess, significantly enhancing the ability to monitor LICs. The six papers, not exploring profit improvement, contain deficiencies. This paper is the first to analyze the feasibility of life insurers improving profit via efficiency versus other business characteristics. The conclusion is that the best and possibly only process for LICs to increase profit is via efficiency.

Keywords: life insurance; efficiency; profit; output/input proxies; stochastic frontier analysis. (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Marin Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania - AGER Contact information at EDIRC.
Bibliographic data for series maintained by Marin Dinu ().

Page updated 2019-03-01
Handle: RePEc:agr:journl:v:4(617):y:2018:i:4(617):p:179-204