An Evaluation of Investment Performance of Private Life Insurance Industry in India

Int J Account Res 2015, 3:2

6 Pages Posted: 1 May 2019

See all articles by S. Husain Ashraf

S. Husain Ashraf

Aligarh Muslim University (AMU)

Nikita Singhal

IIMT University

Date Written: 2015

Abstract

Data Envelopment Analysis (DEA) model is used to provide valuable information on investment efficiency of private life insurance industry in India. This study utilizes two inputs (shareholders’ investments and policyholders’ investments) and two outputs (net returns on investments to the shareholders and net returns on investments to the policyholders). This study focuses upon 20 private life insurance companies operating in India over a period of 4 years from 2010-11 to 2013-14. Since this study attempts to maximize output, an output oriented DEA model is used. The study finds that investment efficiency of private life insurance industry has improved on Banker, Charnes and Cooper (BCC) model and Charnes, Cooper and Rhodes (CCR) model. The study further highlights that during all years under study, 15% to 40% life insurance companies have been found on the CRS frontier and 40% to 60% life insurance companies have been found on the VRS frontier. With regard to scale efficiency issues, 15% to 40% companies have been operated at their most productive scale over the study period.

Keywords: Data envelopment analysis; Technical efficiency; Pure technical efficiency; Scale efficiency

JEL Classification: G22, G23

Suggested Citation

Ashraf, S. Husain and Singhal, Nikita, An Evaluation of Investment Performance of Private Life Insurance Industry in India (2015). Int J Account Res 2015, 3:2, Available at SSRN: https://ssrn.com/abstract=3289616

S. Husain Ashraf

Aligarh Muslim University (AMU) ( email )

Chelamala
Perinthalmanna
Aligarh, IN Uttar Pradesh 202002
India

Nikita Singhal (Contact Author)

IIMT University ( email )

IIMT University, Ganganagar
Meerut, Uttar Pradesh
India
9758947219 (Phone)

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