評估台灣壽險業與產險業經營績效－Metafrontier 模型之應用

Abstract

In the past, most of the study investigate business performance of insurance industry in a certain area or in a single industry with Data Envelopment Analysis(DEA). Study in business performance of Life-insurance and Non-life insurance simultaneously are scarce. Therefore, this study analyzes in two phases based on DEA. In the first phase, we utilize individual group data to estimate frontier of individual group (life and non-life insurance) respectively and to calculate the value of technique efficiency and cost efficiency. In the second phase, this study employs metafrontier model to find out envelope curve, namely metafrontier, and analyzes metafrontier technique efficiency and cost efficiency and cross-period change of productivity. Investigating period of the study lasts from 1999 to 2005 and includes 33 insurance companies (of which 19 are life insurance company, and 14 are non-life insurance company). Life insurance and non-life insurance both consider “numbers of employee”, “fixed asset” and “investment expense” as invested elements; “price of numbers of employee”, “price of fixed asset” and “price of investment expense” as invested price; “reserve” and “insurance premium” as output. In addition, this study uses LINGO software. The result of the study are： 1. For single-period efficiency, cost inefficiency of Life insurance and non-life insurance company in Taiwan mainly comes from resource misallocated inefficiency, causes over invest practical factor. 2. Of the cross-period accumulative efficiency, the average value of accumulative cost efficiency in life insurance increase slightly and the average value of accumulative technique efficiency decrease slightly. Cost efficiency in non-life insurance decreases with increasing accumulative period and technique efficiency maintains stable. 3. For metafrontier, single-period and cross-period average values of cost efficiency and technique efficiency of life insurance are higher than that of non-life insurance. As a whole, efficiency of life insurance is better than that of non-life insurance under the situation of the same technique standard. 4. The Cost Gap Ratio and Technology Gap Ratio of life insurance is higher than that of non-life insurance. As a whole, compared to non-life insurance, cost efficiency and technique efficiency of life insurance is much closer to the whole insurance industry under the same technique standard. 5. This study uses Malmquist productivity index to analyze the variation of productivity of life insurance and non-life insurance from 1999 to 2005. For groups, productivity variation of life insurance declines and non-life insurance is in the contrary. Both productivity indexes are less than 1 which means the productivity variation of the whole insurance industry still decline.