Efficiency and Productivity of Indian Life Insurance Industry

Chakraborty, Kalyan; Dutta, Anirban; Sengupta, Partha Pratim

doi:10.1515/2153-3792.1164

Cited by 14 publications

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“…The empirical results from this study suggest that technological improvement for Indian life insurance firms are very much needed to raise the efficiency and productivity (Chakraborty et al, 2011; Dutta and Sengupta, 2010). Similarly improvement in scale efficiency is highly required with higher penetration level in non-life insurance business and for both the insurance business, improvement in pure technical efficiency by enhancing physical efficiency of inputs are also badly required to maintain high efficiency levels.…”

Section: Discussionmentioning

confidence: 90%

“…There has been an extensive research examining the role of consolidation, organizational form and distributions systems in the US insurance industry such as Cummins, Tennyson and Weiss (1999), Cummins, Weiss and Zi (1999), and Berger, Cummins, and Weiss (1997). Chakraborty, Sengupta, and Dutta (2011) found that the productivity growth in life insurance industry is mainly dominated by five out of 14 most efficient firms. The technological regress is interpreted as the firms needing more inputs to produce their outputs in the terminal year (2009) compared to what they needed at the beginning of the study period (2005).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Chakraborty, Sengupta, and Dutta (2011) found that the productivity growth in life insurance industry is mainly dominated by five out of 14 most efficient firms. The technological regress is interpreted as the firms needing more inputs to produce their outputs in the terminal year (2009) compared to what they needed at the beginning of the study period (2005).…”

Section: Literature Reviewmentioning

confidence: 99%

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

Dutta

2013

Global Business Review

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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.

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Section: Discussionmentioning

confidence: 90%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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

Dutta

2013

Global Business Review

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“…Saat ini, penelitian-penelitian yang telah dilakukan terkait pengukuran efisiensi dan produktivitas asuransi syariah di Indonesia masih sangat sedikit, diantaranya Benarda et al (2016), Sabiti et al (2017) dan Sunarsih & Fitriyani (2018). Umumnya penelitian tentang tingkat produktivitas juga meneliti tentang tingkat efisiensi karena dalam mengukur tingkat produktivitas menggunakan perubahan nilai efisiensi, seperti Barros et al (2005), Cummins & Xie (2013), Chakraborty et al (2013), Yaisawarng et al (2014) serta Bienera et al (2015). Penelitian tentang tingkat produktivitas asuransi syariah di Indonesia baru dilakukan terhadap perusahaan asuransi jiwa syariah (Suryoaji & Cahyono, 2019), namun belum melibatkan perusahaan asuransi umum syariah sehingga penelitian ini dimaksudkan untuk memenuhi ketiadaan tersebut.…”

Section: Pendahuluanunclassified

Analisis Produktivitas dan Faktor-Faktor yang Memengaruhi Efisiensi Asuransi Syariah di Indonesia: Suatu Kajian Empiris

Iskandar

Achsani

Djohar

2020

JAM

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Market share on Islamic Insurance is still very small compared to conventional insurance. Islamic insurance companies must be able to compete with conventional insurance in order to increase their market share. Efficiency and Productivity are factors that must be improved so that Islamic insurance can compete with conventional insurance. This study aims to analyze the level of efficiency and productivity of Islamic insurance during the 2016-2018 period. The study was conducted on 48 Islamic insurance companies consisting of 26 Islamic life insurance companies and 22 Islamic general insurance companies. Efficiency analysis use the Data Envelopment Analysis (DEA) approach and productivity analysis use the Malmquist Productivity Index (MPI). The novelty of this study, among others, involves Islamic general insurance in the productivity analysis which has not been studied so far. The results of the analysis shows that the majority of Islamic life insurance and Islamic general insurance are inefficient during the 2016-2018 period. The size of the company which represents the total assets is the factor that have a positive and significant effect on the efficiency value. The results of the productivity analysis shows that the productivity level of both sharia life insurance and general sharia insurance during the 2016-2018 period is influenced by technological change factors.

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“…The productivity analysis of different insurance sectors has experienced rapid growth due to deregulation and liberalisation in the insurance industry (Cummins and Weiss, 2013). To the authors’ best knowledge, there are eight studies that appraise the evolution of productivity of the Indian insurance sector (Sinha, 2007a, b; Dutta, 2013; Chakraborty et al , 2013; Chakraborty, 2016, 2018; Chakraborty and Harper, 2017; Ilyas and Rajasekaran, 2019). Most of these productivity analysis studies on the Indian insurance sector evince an improvement in productivity of the insurers, which is attributable to the technological progress.…”

Section: Review Of Literaturementioning

confidence: 99%

Productivity of the Indian non-life insurance sector

Ilyas

Rajasekaran

2019

IJPPM

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Purpose The purpose of this paper is to analyse the performance of the Indian non-life (general) insurance sector in terms of total factor productivity (TFP) over the period 2005–2016. Design/methodology/approach This study utilises Färe‒Primont index (FPI) to access the change in TFP and its components: technical change, technical efficiency and mix and scale efficiency over the observation period. Moreover, it employs the Mann–Whitney U-test to scrutinise the difference between the public and the private insurers in terms of growth in productivity. Findings The results reveal that the insurance sector possesses a very low level of TFP. Also, the results divulge an improvement of 11.98 per cent in TFP of the insurance sector at an annual average rate of 12.41 per cent over the observation period. The growth in productivity is mainly attributable to the improvement of 10.81 per cent in the scale‒mix efficiency. The progress in scale‒mix efficiency is mainly the result of improvements in residual scale and residual mix efficiency. The results also show that the privately owned insurers have experienced a high productivity growth rate than the state-owned insurers. Practical implications The results hold practical implications for the regulators, policymakers and decision makers of the Indian non-life insurance companies. Originality/value This study is the first of its kind to use FPI, which satisfies all economically relevant axioms and tests defined by the index number theory to comprehensively access the change in TFP of the Indian non-life insurance sector.

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Efficiency and Productivity of Indian Life Insurance Industry

Cited by 14 publications

References 0 publications

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

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

Analisis Produktivitas dan Faktor-Faktor yang Memengaruhi Efisiensi Asuransi Syariah di Indonesia: Suatu Kajian Empiris

Productivity of the Indian non-life insurance sector

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