Estimating Revenue Efficiency in Indian General Insurance Companies: A Semi-parametric Econometric Approach
Journal Title: Journal of Operational and Strategic Analytics - Year 2024, Vol 2, Issue 1
Abstract
In the realm of general insurance in India, an econometric investigation was conducted to estimate the revenue efficiency across a selection of 15 prominent, diversified general insurance entities for the fiscal years 2011-12 to 2016-17. Utilizing a semi-parametric methodology, the revenue frontier was constructed under the GAM framework, while the variance components were estimated employing the method of moments. This analysis further explored the influence of revenue efficiency on critical profitability metrics, namely return on equity (ROE) and return on assets (ROA), through the application of instrumental variable regression. The findings provide pivotal insights into the dynamics of revenue efficiency and its consequential impact on the financial performance of general insurance companies in India, offering a substantial contribution to the literature on insurance economics and the methodology of efficiency measurement. The research underscores the significance of adopting semi-parametric models for a nuanced understanding of revenue efficiency, thus paving the way for enhanced strategic decision-making in the insurance sector.
Authors and Affiliations
Ram Pratap Sinha
Keywords
Related Articles
- EP ID EP742276
- DOI 10.56578/josa020104
- Views 20
- Downloads 0
Enhancing Emergency Department Efficiency Through Simulation and Fuzzy Multi-Criteria Decision-Making Integration
An innovative framework is introduced for the enhancement of efficiency within emergency departments (EDs), utilizing an integration of simulation and fuzzy Multi-Criteria Decision-Making (MCDM). A discrete event simulat...
Strategic Adaptation in Travel Agencies: Integrating MARA with SWOT for Uncertainty Navigation
In the realm of managerial decision-making, particularly within the last few decades, the process has emerged as a formidable challenge. This paper focuses on strategic decision-making, crucial in determining organizatio...
Optimizing Hard Disk Selection via a Fuzzy Parameterized Single-Valued Neutrosophic Soft Set Approach
This study introduces a novel approach to decision-making problems, especially in the context of hard disk selection, using the concept of the fuzzy parameterized single-valued neutrosophic soft set (FP-SVNSS). Primarily...
Risk Analysis in Internal Transport: An Evaluation of Occupational Health and Safety Using the Fine-Kinney Method
The imperatives of occupational health and safety (OHS) are increasingly recognised as critical components of business operations, particularly within logistics where manual tasks such as item picking and transportation...
Leveraging Self-Management for Enhanced Productivity: Insights from Tehran's Water Sector
This study was undertaken to elucidate the influence of self-management on the productivity levels of personnel within the Water and Wastewater Department, District 2, Tehran, utilizing a descriptive survey method that e...