Cost Efficiency of Indian Life Insurance Service Providers using Data Envelopment Analysis
Abstract
This study examines the cost efficiency of Indian life insurance service providers using Data Envelopment Analysis. The study was performed for a sample of fifteen of the major life insurance companies in India, accounting for 94.77% of the total market for life insurance in India, over the period of 2010-17. The study extends the scope of cost efficiency by disaggregating the premium collection into components. Also, to provide more detailed insights, the efficiency of the life insurance companies is also analysed with respect to each input and output individually.
The results of the study show that the most efficient Indian life insurance companies are Life Insurance Corporation, which has been consistently 100% efficient throughout the research period, followed by SBI Life and ICICI Prudential Life, which have also shown consistently high efficiency over the research period. On the other hand, the least efficient life insurance companies are Max New York Life, followed by PNB Met Life, Reliance Life, and Bharati AXA Life. The results of the study also indicate the strengths and weaknesses of the Indian life insurance providers.
Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Copyrights for articles published in MTI journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.
