Efficiency of life insurance companies in Malaysia and Brunei: a comparative analysis

Efficiency of life insurance companies in Malaysia and Brunei: a comparative analysis

This study focuses on the efficiency of the life insurance industry in Brunei and Malaysia. Data Envelopment Analysis(DEA) is used to explore the contributions of technical and efficiency change to the growth of productivity in the Malaysian and Brunei life insurance industries by applying the gener...

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Main Authors: Md Saad, Norma, Haji Idris, Nur Edzalina
Format: Article
Language:English
Published: Centre for Promoting Ideas 2011
Subjects:
HG8011 Insurance
Online Access:http://irep.iium.edu.my/3263/
http://irep.iium.edu.my/3263/
http://irep.iium.edu.my/3263/1/IJHSS.pdf
id iium-3263
recordtype eprints
spelling iium-32632011-11-09T04:30:11Z http://irep.iium.edu.my/3263/ Efficiency of life insurance companies in Malaysia and Brunei: a comparative analysis Md Saad, Norma Haji Idris, Nur Edzalina HG8011 Insurance This study focuses on the efficiency of the life insurance industry in Brunei and Malaysia. Data Envelopment Analysis(DEA) is used to explore the contributions of technical and efficiency change to the growth of productivity in the Malaysian and Brunei life insurance industries by applying the generalized output-oriented Malmquist index for the year 2000-2005. The output-input data consists of a panel of 9 life insurance firms in Malaysia and 2 life insurance companies in Brunei that were chosen as the sample of the study. This study utilizes two inputs and two outputs, namely, commission and management as well as premium and net investment income, respectively. In the DEA technique, efficiency is measured by the Malmquist index. The Malmquist efficiency measures are decomposed into two components: the efficiency change and technical change index. Efficiency change is again decomposed into pure efficiency and scale efficiency. It is found that, on average, the TFP of the life insurance industry is mainly due to both efficiency and technical changes where the main source of the efficiency change is scale efficiency rather than pure efficiency. Centre for Promoting Ideas 2011-03 Article PeerReviewed application/pdf en http://irep.iium.edu.my/3263/1/IJHSS.pdf Md Saad, Norma and Haji Idris, Nur Edzalina (2011) Efficiency of life insurance companies in Malaysia and Brunei: a comparative analysis. International Journal of Humanities and Social Science, 1 (3). pp. 111-122. ISSN 2221-0989 (O), 2220-8488 (P) http://www.ijhssnet.com/
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG8011 Insurance
spellingShingle HG8011 Insurance
Md Saad, Norma
Haji Idris, Nur Edzalina
Efficiency of life insurance companies in Malaysia and Brunei: a comparative analysis
description This study focuses on the efficiency of the life insurance industry in Brunei and Malaysia. Data Envelopment Analysis(DEA) is used to explore the contributions of technical and efficiency change to the growth of productivity in the Malaysian and Brunei life insurance industries by applying the generalized output-oriented Malmquist index for the year 2000-2005. The output-input data consists of a panel of 9 life insurance firms in Malaysia and 2 life insurance companies in Brunei that were chosen as the sample of the study. This study utilizes two inputs and two outputs, namely, commission and management as well as premium and net investment income, respectively. In the DEA technique, efficiency is measured by the Malmquist index. The Malmquist efficiency measures are decomposed into two components: the efficiency change and technical change index. Efficiency change is again decomposed into pure efficiency and scale efficiency. It is found that, on average, the TFP of the life insurance industry is mainly due to both efficiency and technical changes where the main source of the efficiency change is scale efficiency rather than pure efficiency.
format Article
author Md Saad, Norma
Haji Idris, Nur Edzalina
author_facet Md Saad, Norma
Haji Idris, Nur Edzalina
author_sort Md Saad, Norma
title Efficiency of life insurance companies in Malaysia and Brunei: a comparative analysis
title_short Efficiency of life insurance companies in Malaysia and Brunei: a comparative analysis
title_full Efficiency of life insurance companies in Malaysia and Brunei: a comparative analysis
title_fullStr Efficiency of life insurance companies in Malaysia and Brunei: a comparative analysis
title_full_unstemmed Efficiency of life insurance companies in Malaysia and Brunei: a comparative analysis
title_sort efficiency of life insurance companies in malaysia and brunei: a comparative analysis
publisher Centre for Promoting Ideas
publishDate 2011
url http://irep.iium.edu.my/3263/
http://irep.iium.edu.my/3263/
http://irep.iium.edu.my/3263/1/IJHSS.pdf
first_indexed 2023-09-18T20:11:02Z
last_indexed 2023-09-18T20:11:02Z
_version_ 1777407478676324352

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