Efficiency of Life Insurance Companies: An Empirical Study in Mainland China and Taiwan

Hwai-Shuh Shieh, Jin-Li Hu () and Yong-Ze Ang

SAGE Open, 2020, vol. 10, issue 1, 2158244020902060

Abstract: The study employs metafrontier and four-stage data envelopment analysis (DEA) to measure the overall and individual efficiency of life insurance companies in mainland China and Taiwan, after applying the slack-based measure (SBM)-DEA model to adjust the differences in the operating environment across production units. The empirical findings show the following: (a) The environmental factors significantly affected the efficiency of all life insurance companies. After the adjustments, the efficiency score of life insurance companies in mainland China and Taiwan drops for 14.01% and 26.64% in regional frontier, and 38.31% and 12.22% in metafrontier frontier. (b) Before 2008, the life insurance companies in Taiwan are more efficient than those in mainland China.

Keywords: data envelopment analysis (DEA); slack-based measure (SBM); four-stage DEA; metafrontier; efficiency (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:10:y:2020:i:1:p:2158244020902060

DOI: 10.1177/2158244020902060

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