Impact of Privatization on Productivity: A Non-Parametric Analysis of Indian Insurance Sector

Anirban Dutta
Additional contact information
Anirban Dutta: Anirban Dutta is Assistant Professor at School of Management, National Institute of Technology-Agartala, Barjala, Jirania, Tripura, India. E-mail: anirbandutta3@rediffmail.com

Global Business Review, 2013, vol. 14, issue 2, 297-314

Abstract: The insurance sector was opened up for private participation on the ground that the interests of the consumers would be better served if there is competition among the insurers, which will ultimately increase productivity of the sector as a whole. The main objective of this article is to analyze the productivity changes of Indian life and non-life insurance business with the application of non-parametric Malmquist indices. Therefore, this study uses ‘expenses related to labour’ ( x 1 ), ‘expenses related to business service and materials’ ( x 2 ) and ‘total investment’ ( x 3 ) as major three inputs; and following the ‘intermediation approach’ and the ‘value-added approach’, this study uses ‘premiums earned’ ( y 1 ) as the output for risk bearing/risk pooling service following the value-added approach and ‘income from investment’ ( y 2 ) as the intermediation output. From the productivity analysis we found that, during the study period (2005–2006 to 2009–2010) total factor productivity decreased in life insurance business but it increased in case of non-life insurance business with different reason behind the change. We can also conclude in overall factor productivity analysis excluding public sector insurers; though the public sector insurers are significantly older in the market but it has an unfavourable impact on the insurance market in terms of factor productivity and technological progress.

Keywords: DEA; total factor productivity; Malmquist indices; Indian insurance sector (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0972150913477519 (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: https://EconPapers.repec.org/RePEc:sae:globus:v:14:y:2013:i:2:p:297-314

DOI: 10.1177/0972150913477519

Access Statistics for this article

More articles in Global Business Review from International Management Institute
Bibliographic data for series maintained by SAGE Publications ().