scholarly journals Analysis of the efficiency of insurance companies in Indonesia

2022 ◽  
Vol 11 (2) ◽  
pp. 105-112
Author(s):  
Zaenal Abdin ◽  
R. Mahelan Prabantarikso ◽  
Edian Fahmy ◽  
Ahmad Farhan
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Banking Sector ◽  
System Stability ◽  
Insurance Companies ◽  
Positive Trend ◽  
Data Envelopment ◽  
General Insurance ◽  
Parametric Data ◽  
Efficiency Performance

Financial system stability is not only supported by the banking sector, but also the role of insurance companies that operate efficiently. The study aims to analyze the efficiency performance of general insurance companies using two stages of data envelopment analysis during the 2017 – 2018 period. The first stage of efficiency measurement using a non-parametric data envelopment analysis (DEA) approach shows the efficiency level of general insurance companies experiencing a positive trend. The performance of general insurance companies in 2018 was more efficient than in 2017 based on the value of technical efficiency (CRS) and the value of pure technical efficiency (VRS). This means that in general there has been an increase in the efficiency of general insurance companies in Indonesia from 2017 to 2018. Testing the efficiency determinants in the second stage using the Tobit regression model found that the cost ratio is the only factor that significantly influences the efficiency level of general insurance companies in Indonesia. Meanwhile, company ownership and investment adequacy ratio have no significant effect on the efficiency level of general insurance companies in Indonesia. The results of the study provide recommendations to the management of general insurance companies that efficiency performance has not reached the maximum, and to improve it, it is necessary to control costs without disturbing routine operations and development activities.

scholarly journals The Efficiency Performance of Global Islamic Banks

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Norlina Kadri ◽  
Rossazana Abdul Rahim ◽  
Dyg Siti Zahrah Abg. Abdillah
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Banking Sector ◽  
Scale Efficiency ◽  
Islamic Banking ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Technical Inefficiency ◽  
Efficiency Performance ◽  
Dea Approach

This paper examines the efficiency performance of the Islamic banks that consist of 14 countries namely Bahrain, Bangladesh, Iran, Jordan, Kuwait, Lebanon, Malaysia, Pakistan, Qatar, Saudi, Tunisia, Turkey, UAE, and Yemen during the period of 2004-2011 with 44 Islamic banks involved. The efficiency estimates of individual banks are evaluated using the Data Envelopment Analysis (DEA) approach. The empirical findings suggest that during the period of study, pure technical efficiency outweighs scale efficiency in the global Islamic banking sector implying that the Islamic banks have been managerially efficient in exploiting their resources to the fullest extent. The empirical findings seem to suggest that the global Islamic banks have exhibited high pure technical efficiency. During the period of study it is found that pure technical efficiency has greater influence in determining the total technical inefficiency of the Global Islamic banking sectors.

scholarly journals MEASURING TECHNICAL EFFICIENCY OF MALAYSIAN REAL ESTATE INVESTMENT TRUSTS: A DATA ENVELOPMENT ANALYSIS APPROACH

2019 ◽  
Vol 17 (9) ◽  
Author(s):  
Nor Nazihah Chuweni
Keyword(s):  
Data Envelopment Analysis ◽  
Real Estate ◽  
Technical Efficiency ◽  
Economies Of Scale ◽  
Efficient Frontier ◽  
Data Envelopment ◽  
Real Estate Investment ◽  
Nonparametric Approach ◽  
Efficiency Measures ◽  
Efficiency Performance

The research examines the technical efficiency (TE) and economies of scale for the Malaysian Real Estate Investment Trust (M-REITs) from 2010 to 2014, using a non-parametric approach of Data Envelopment Analysis (DEA). The nonparametric approach of Variable Return to Scale DEA (VRS-DEA model) was used to estimate the efficiency scores for M-REITs. The negative inefficient value for the technical inefficiencies is identified as a result of both poor input utilisation (managerial inefficiency) and failure of M-REITs to operate at optimum scale (scale inefficiency). The mean technical efficiency (TE) measures ranged from as low as 41.70% in 2011 to as high as 84.30% in 2014. Despite having the Sharia requirement, Islamic REITs in Malaysia provide an effective investment opportunity evidenced by the higher scores for all efficiency measures, as compared to conventional REITs for the period under study. Pure technical inefficiency has a greater deviation in the efficient frontier than scale inefficiency, suggesting that M-REITs inputs are not fully minimised to produce more outputs. With regard to scale inefficiency, M-REITs are operating at economies of scale, indicating the importance of expansion or growth to improve on efficiency performance. This will then allow M-REIT managers to formulate better strategic investment decisions.

scholarly journals Analisis Efisiensi Asuransi Umum Syariah di Indonesia Tahun 2013-2015: Aplikasi Metode Data Envelopment Analysis (DEA)

2017 ◽  
Vol 4 (9) ◽  
pp. 757
Author(s):  
Yulia Wahyu Ningsih ◽  
Noven Suprayogi
Keyword(s):  
Data Envelopment Analysis ◽  
Insurance Companies ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Insurance Company ◽  
Average Value ◽  
General Insurance ◽  
Decision Making Unit ◽  
Dea Analysis ◽  
Input Variables

This study aims to analyze the efficiency of sharia general insurance companies in Indonesia. The input variables used are total assets, expenses, and payment of claims, while the output variable is the income and tabarru’ funds. The method were used to measure the level of efficiency is the Data Envelopment Analysis (DEA) with the assumption of Variable Return to Scale (VRS) with input and output orientation. The samples are 12 sharia general insurance companies during 2013-2015. The results of the study indicate that the average result of DEA analysis for the entire DMU (Decision Making Unit) has not been efficient. The average value of economic efficiency (CRS) by 0.978, technically efficiency (VRS) for 0.925, and scale efficiency for 0.945. Source of inefficiency sharia insurance company is the scale of operations and management of input to output is not optimal.

Data Envelopment Analysis and Malmquist Index Application: Efficiency of Primary Health Care in Morocco and Covid-19

2021 ◽  
Vol 12 (5) ◽  
pp. 971-983
Author(s):  
Youssef Er Rays, Et. al.
Keyword(s):  
Health Care ◽  
Primary Health Care ◽  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Malmquist Index ◽  
Policy Implications ◽  
Data Envelopment ◽  
Primary Health ◽  
Parametric Data ◽  
Strategic Role

The Primary Health Care in Morocco plays a very strategic role in the prevention against various diseases, in particular the current pandemic COVID 19. The efficiency of these centers has a direct impact on the reduction of this pandemic. First, this is why will try to research the literature review about the technical efficiency of primary health care. In the second step, the non-parametric: Data Envelopment Analysis method will be used to apply the empiric phase during the period 2012-2015, to estimate the relative technical efficiency, this method will be calculated by using two models: the theory of the return to scale constant with a middle equal to 0.437 and the theory of the variable return to scale with an average of 0.537. It’s necessary to combine the DEA approach with the Malmquist index to evaluate the factors of production. Finally, to compare the results of the proposed method which are generally very poor, and discuss his policy implications for health care.

Determinants of Efficiency in the Malaysian Banking Sector: Evidence from Semi-parametric Data Envelopment Analysis Method

2016 ◽  
Vol 4 (2) ◽  
pp. 151-172 ◽  
Author(s):  
Fadzlan Sufian
Keyword(s):  
Data Envelopment Analysis ◽  
Banking Sector ◽  
Productive Efficiency ◽  
Data Envelopment ◽  
Panel Regression ◽  
Analysis Method ◽  
Bank Efficiency ◽  
Panel Regressions ◽  
Parametric Data ◽  
The Impact

This article follows Simar and Wilson’s (2007 , Journal of Econometrics, 136(1), 31–64) two-stage procedure to analyse the efficiency of the Malaysian banking sector. In the first stage, we employ the data envelopment analysis (DEA) method to compute the efficiency of individual banks during the period 1999–2008. We then use panel regressions to examine the impact of ownership on bank efficiency while controlling for the potential impacts of contextual variables. The DEA results indicate an increase in efficiency over the sample period. The results from the panel regression suggest that productive efficiency is positively related to bank size, capitalization and foreign ownership. On the other hand, the publicly listed and government-owned banks have been relatively inefficient in their intermediation function.

Assessing the Technical Efficiency of Traditional and Corporate Agents in Indian Life Insurance Industry: Slack-based Data Envelopment Analysis Approach

2018 ◽  
Vol 21 (2) ◽  
pp. 490-506 ◽  
Author(s):  
Ankitha Shetty ◽  
Savitha Basri
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Life Insurance ◽  
Insurance Industry ◽  
Distribution Channels ◽  
Insurance Companies ◽  
Data Envelopment ◽  
Life Insurance Industry ◽  
Significant Difference

The distribution channels play an imperative role in the life insurance industry. In India, traditional and corporate agency are contributing immensely to the profitability of the insurance companies. The challenges faced by the distributional channels such as high attrition, soaring expense ratio and sales inefficiency have created the need to probe into the efficiency aspects of the channel players. In the absence of such studies in India, this article evaluates the technical efficiency of distribution channels in life insurance industry by analysing the data collected from 12 insurance companies for the period 2012 to 2016. The efficiency scores were obtained by applying data envelopment analysis that considered two inputs (number of agents and commission expenses) and two outputs (average business premium and total policies sold). The findings reveal no significant difference in the efficiency scores of bancassurance and traditional agents. Quiet life hypothesis that market share (ratio of premium contribution to total premium) of distributional channels and their efficiency scores are negatively correlated is not supported. Moreover, the slack analysis shows excess inputs per output generated for both the channels. If the companies that scored low in efficiency do not plug the leakages regarding commission as well a number of agents, adverse performance in the long-term and consequent financial crisis are inevitable.

scholarly journals THE EFFICIENCY OF BANKS IN INDONESIA: SHARIA VS. CONVENTIONAL BANKS

2016 ◽  
Vol 18 (3) ◽  
pp. 307-332
Author(s):  
Mokhamad Anwar
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Islamic Banking ◽  
Data Envelopment ◽  
Bank Capital ◽  
Tobit Regression ◽  
Small Business Finance ◽  
Conventional Banks

This paper evaluates the performance of Indonesian banking sector, focusing on technical efficiency of sharia and conventional banks along with the determinants of its efficiency during the period 2002-2010. Data Envelopment Analysis is employed to estimate banks technical efficiency and Tobit-regression is used to reveal the determinants of the efficiency over the panel data of 116 banks, including 109 conventional banks and 7 sharia banks. The result shows that sharia banks outperformed conventional banks in one model when it takes into account small business finance (SBF) as one of the output components in the model. Sharia banks have higher average SBF portfolio than those of conventional banks’ portfolio. The result indicates the efforts of Indonesian sharia banks to obey one of the principles in Islamic banking, “the emphasis on Islamic principles of morality”. By observing all models, it is concluded that the size of the bank, capital adequacy and liquidity are of banks characteristic factors which are very important to increase banks’ efficiency

scholarly journals An Evaluation of the Technical Efficiency of the Selected Commercial Banks with the Usage of the CCR-DEA Model under the Conditions of Acquisitions in the Banking Sector

2020 ◽  
Vol 54 (1) ◽  
pp. 77
Author(s):  
Anna Pyka
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Linear Form ◽  
Commercial Banks ◽  
Banking Sector ◽  
Data Envelopment ◽  
Dea Model ◽  
The Impact ◽  
Ccr Model

<p>The aim of this article is to evaluate the technical efficiency of the chosen commercial banks, which in the years 2014–2016 were participants in acquisitions in the banking sector, with the usage of the Data Envelopment Analysis (DEA) model. The DEA model was modified through reshaping the linear form using the Charnes, Cooper, and Rhodes (CCR) model, which is aimed at expenditures. Particular attention was paid to the impact of acquisitions in the banking sector on the improvement or deterioration of the technical efficiency of banks that act as acquiring banks.</p>

Two-Stage Data Envelopment Analysis Efficiency of Indian General Insurance Companies

2021 ◽  
pp. 097215092110476
Author(s):  
Ram Pratap Sinha
Keyword(s):  
Data Envelopment Analysis ◽  
Asset Management ◽  
Evaluation Model ◽  
Insurance Companies ◽  
Data Envelopment ◽  
Efficiency Evaluation ◽  
Two Stage ◽  
Network Dea ◽  
Second Stage ◽  
General Insurance

The present study compares efficiency-related performance of 15 Indian general insurance companies using a two-stage efficiency evaluation model. Efficiency evaluation has been made for the span 2009–2010 to 2017–2018 using network DEA (data envelopment analysis). The results indicate that the in-sample private sector general insurance companies outcompeted the public sector insurers with regard to first-stage activity (premium mobilization), while the reverse was observed in terms of the second-stage activity (asset management and provision of claim benefits). The study also carried out regression of efficiency scores on several contextual variables. The results indicate that ownership is an influential contextual variable in both stages of productivity while solvency significantly impacts efficiency in the second stage.

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