Performance analysis and benchmarking of general and health insurance companies of India: a three stage DEA study

Sapna Malya and Sajeev Abraham George

International Journal of Productivity and Performance Management, 2024, vol. 74, issue 5, 1676-1699

Abstract: Purpose - This paper analyses and benchmarks the performance of the general and health Insurance companies in India, considering their production, capital allocation and investment efficiencies as three distinct stages. Design/methodology/approach - A three stage Data Envelopment Analysis (DEA) methodology has been used with three years of data of the health and general insurance companies. Findings - In addition to production and investment efficiencies, the capital allocation efficiency of an insurance firm significantly impacts its financial performance. The study shows that notwithstanding the efficiency scores in production and investment, general insurance firms with superior capital allocation efficiencies are the ones that have been able to translate their efficiencies into better business performance. Practical implications - The study provides deeper understanding of the importance of capital allocation decisions and its linkages to production and investment efficiencies to help insurance firms to make better operational and financial decisions. The standalone health insurance players in spite of their reasonably high capital allocation efficiency scores have not been able to translate their efficiencies into superior financial performance. Originality/value - While the existing literature at best has only considered production and investment decisions as the two stages, the present study has added another stage relating to the allocation of financial resources of the insurance firms. The paper is also distinct in terms of its analysis of linkages between efficiency scores of the three different stages with key financial performance measures.

Keywords: Data envelopment analysis; DEA; Efficiency; Capital allocation efficiency; Performance measurement; Insurance; India (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

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: https://EconPapers.repec.org/RePEc:eme:ijppmp:ijppm-03-2024-0148

DOI: 10.1108/IJPPM-03-2024-0148

Access Statistics for this article

International Journal of Productivity and Performance Management is currently edited by Dr Aylin Ates and Dr Berk Kucukaltan

More articles in International Journal of Productivity and Performance Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().