A Stochastic Frontier Model on Investigating Efficiency of Life Insurance Companies in India
Journal Title: INTERNATIONAL JOURNAL OF MATHEMATICS TRENDS AND TECHNOLOGY - Year 2013, Vol 4, Issue 10
Abstract
The present paper attempts to investigate the efficiency of life insurance companies in India for the year 2011. An insurance company is said to be efficient if it produce maximum profit using minimum level of available resources. Due to new policies of Government of India, many new insurance companies emerged in Indian market which created a high competition among themselves, which made administrators to monitor their company’s efficiency level over a period of times to make improvement or changes in their strategy to survive. Studying efficiency of an organization became pioneering area of research during the last several years. Among many frontier techniques Stochastic Frontier Analysis (SFA) is one of the best known techniques to determine the efficiency. The SFA results indicate that the efficient scores lie between the values 0.1244 to 0.9992; and the average efficient score for all 24 life insurance companies is 0.5767. The life insurance company LI03 is ranked first with the efficiency score of 0.9992 followed by LI11 with efficiency score of 0.9881. LI24 stands last with the efficiency score of 0.1244 (rank 24). The variables investment and net claims considered in the present study differ significantly at 5% level.
Authors and Affiliations
R. Chandrasekaran , R. Madhanagopal , K. Karthick
Keywords
Related Articles
- EP ID EP136233
- DOI -
- Views 79
- Downloads 0
Detour Distant Divisor Graphs
Let G = (V,E) be a (p, q) - graph. The longest path P is called a detour distant divisor path if l(P) is a divisor of q . A detour distant divisor graph DD(G) of graph G = (V,E) has the vertex set V = V (G) and two verti...
Bulk Arrival Two Phase Retrial Queue with Two Types Service and Extended Bernoulli Vacation
This paper is concerned with the analysis of a single server batch arrival retrial queueing system with optional extended server vacation. Server provides two stages of heterogeneous service in succession. Each...
The Relation between Language and Science, Technology, and Mathematics in Nigerian Schools
The study focuses on importance of language proficiency in the learning of science, technology and mathematics (STM) with attention given to the review of research studies on language and STM within the context o...
Characterizations of k-normal matrices
In this paper to extend and generalize lists of characterizations of k-normal and k-hermitian matrices known in the literature, by providing numerous sets of equivalent conditions referring to the notions of co...
Mathematical Modelling of Pulmonary and Extra-pulmonary Tuberculosis
Tuberculosis (TB) is a big public health problem in India. As per WHO TB-report 2011, India accounts for one fourth (approximately 26%) of the global TB incident cases. Each year nearly 20,00000 people in Indi...