Industry regulation, fund characteristics, and the efficiency of Australian private health insurers

Nguyen, Lan; Worthington, Andrew C.

doi:10.1111/acfi.12593

Cited by 7 publications

(6 citation statements)

References 26 publications

(52 reference statements)

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“…At present, the academic circles mainly use two methods to evaluate efficiency: Data Envelopment Analysis [13][14][15][16][17][18][19][20][21][22][23] and stochastic frontier analysis. 24,25 Data envelopment analysis is the most widely used and applicable nonparametric test method.…”

Section: Efficiency Evaluation Methods Of Fiscal Medical and Health E...mentioning

confidence: 99%

Evaluation of the Results of China’s Fiscal Medical and Health Expenditure

Wang¹,

Wang²

2022

RMHP

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To evaluate the resulting level of fiscal medical and health expenditure in China, and to provide the scientific basis for further improving fiscal medical and health service capacity in China. Patients and Methods:The data envelopment method and Gini coefficient method were used to analyze the efficiency and regional fairness of fiscal medical and health expenditure results by using the relevant provincial and municipal data of China from 2007 to 2019. Results: 1.Overall, from 2007 to 2019, the total expenditure continued to increase, the expenditure efficiency increased first and then decreased, and the expenditure fairness continued to improve. 2. From the perspective of subregions, there are apparent differences between regions in terms of total expenditure, expenditure efficiency, and expenditure fairness, showing a better situation in the central, western, northeast and a lower situation in the east. Conclusion:The overall level of fiscal medical and health expenditure in China shows an upward trend, but there is still much room for improvement. At the same time, there are pronounced regional differences, and the problems of efficiency and fairness coexist among regions. Therefore, in the future, we should increase medical and health investment and enhance the government's close attention; Improve the expenditure performance appraisal system; Formulate policies according to local conditions and avoid "one size fits all.". Keywords: fiscal medical and health expenditure, efficiency of expenditure results, fairness of expenditure results, regional differences, government attention

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Section: Efficiency Evaluation Methods Of Fiscal Medical and Health E...mentioning

confidence: 99%

Evaluation of the Results of China’s Fiscal Medical and Health Expenditure

Wang¹,

Wang²

2022

RMHP

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“…Despite the presence of works studying efficiency levels in the insurance industry in recent years (Camino-Mogro & Bermúdez-Barrezueta, 2019 ; Nguyen & Worthington, 2020 ), they do not further investigate the effect of technological change. In the light of previous results, showing a moderate efficiency in the industry and of recent technological innovations with the potential to change the industry (Eling & Lehmann, 2018 ), in particular in the country mostly affected by innovative technological applications in insurance [i.e.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Danquah et al ( 2018 ) and Delhausse et al ( 1995 ) applied parametric techniques, stochastic frontier analysis (SFA) in particular, which provide techniques for modeling the frontier within a regression framework in order to estimate efficiency. Other authors applied non-parametric techniques, which utilize linear programing techniques to estimate the frontier and provide relative assessment (Tuzcu & Ertugay, 2020 ) such as Data Envelopment Analysis (DEA) (Barros et al, 2005 ; Cummins & Turchetti, 1996 ; Hesarzadeh, 2020 ; Nguyen & Worthington, 2020 ; Nourani et al, 2020 ; Shieh et al, 2020 ), and two-stage DEA (Li et al, 2018 ). The choice of the methodology for estimating efficient frontiers has generated debates in the literature, with some scholars supporting the parametric approach (Berger, 1993 ; Greene, 2008 ) and others the nonparametric one (Cooper et al, 2011 ), with no clear conclusion.…”

Section: Literature Reviewmentioning

confidence: 99%

Translating technological innovation into efficiency: the case of US public P&C insurance companies

Lanfranchi

Grassi

2021

Eurasian Bus Rev

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In recent years, Insurtech innovations, driven by technologies such as artificial intelligence and blockchain, emerged in the insurance industry, with the promise of improving efficiency. However, while the positive impact of technology on insurance companies’ efficiency is expected, literature assessing it empirically is scarce, when it comes to recent technological change. Focusing on the US public P&C insurance sector in the period 2012–2018 and relying on both nonparametric (two stage DEA) and parametric (SFA) approaches, it emerges that on average insurance companies were not able to leverage on technological innovations to improve their efficiency. On average a relative level of efficiency among companies, according to a two stage DEA model, was quite stable in time, while the SFA approach shows that the distance between efficient and less efficient firms slightly increased. Moreover, we found one very efficient firm, almost a leader of the market in terms of efficiency, and a homogeneous group of followers, indicating that there is vast scope for improvement for less efficient companies. Nevertheless, even the most efficient company impaired its efficiency over time, suggesting that neither the leader nor on average the followers properly leveraged technology to improve their efficiency. In a competitive scenario, with new players’ entrance and fierce competition, inertia may seriously affect their positioning. Academicians, managers and policymakers should carefully consider the effects that a non-improvement of efficiency following technological change may have on market structure, competition and regulations, potentially opening to further discussion on how technological innovations adoption should be facilitated.

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“…A conglomerate may increase management and coordination cost which may result into principal–agent conflict and cross‐subsidization due to inefficient internal capital markets (Scharfstein & Stein, 2000). Nguyen and Worthington (2021) in their study on Australian private health insurers examined the technical and scale efficiency of 30 insurers during the period 2010–2017 using DEA. They found pure technical efficiency of 91.6% and scale efficiency of 95.1%.…”

Section: Literature Reviewmentioning

confidence: 99%

How efficient is Indian health insurance sector: An SBM‐DEA study

Siddiqui

2021

Manage Decis Econ

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The aims of this study are to investigate the technical efficiency and productivity growth of the Indian health insurance sector and to test the conglomeration hypothesis versus the strategic focus hypothesis for providing new evidence on economies of scope. This study has analyzed the efficiency and productivity performance of the 27 health insurance companies from the period 2015 to 2019 using slack‐based measurers (SBM) of data envelopment analysis. The Malmquist index has been used to evaluate the productivity of health insurers. The Mann–Whitney test is used to investigate the conglomeration hypothesis versus the strategic focus hypothesis. Findings indicate that Indian health insurance industry experienced significant fluctuations in mean technical efficiency during the study period. Almost 30% of the health insurers operated efficiently during the study period. Almost half of the health insurers experienced growth during this period. The Indian health insurance sector grew at an annual average rate of 3.78% during our study period. We further found that the stand‐alone health insurers operated more efficiently than the health insurance units of the general insurers in the Indian health insurance sector. This study is first of its kind that brings into light the operating characteristics, efficiencies, and productivity of the Indian health insurance sector. This study will be helpful to the regulators, decision makers, and other stakeholders. The policy makers of health insurance companies can improve their efficiency after knowing the reasons of inefficiency. The managers of inefficient health insurers may expedite measures to improve efficiency by better utilization of existing resources and technological improvements.

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Industry regulation, fund characteristics, and the efficiency of Australian private health insurers

Cited by 7 publications

References 26 publications

Evaluation of the Results of China’s Fiscal Medical and Health Expenditure

Evaluation of the Results of China’s Fiscal Medical and Health Expenditure

Translating technological innovation into efficiency: the case of US public P&C insurance companies

How efficient is Indian health insurance sector: An SBM‐DEA study

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