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

Hwai Shuh Shieh; Jin Li Hu; Yong Ze Ang

doi:10.1177/2158244020902060

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

Hwai Shuh Shieh^*, Jin Li Hu, Yong Ze Ang

^*Corresponding author for this work

Institute of Business and Management

Research output: Contribution to journal › Article › peer-review

11 Scopus citations

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.

Original language	English
Article number	2158244020902060
Journal	SAGE Open
Volume	10
Issue number	1
DOIs	https://doi.org/10.1177/2158244020902060
State	Published - 11 Feb 2020

Keywords

data envelopment analysis (DEA)
efficiency
four-stage DEA
metafrontier
slack-based measure (SBM)

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

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