Financial management efficiency performance of insurers and takaful operators in Malaysia
This study is aimed to assess the financial management efficiency of each insurer/takaful operator in both conventional and takaful industry. We also identify the operating system that is more efficient among the conventional and takaful system which involves 20 firms. The results from the slack-b...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2014
|
| Online Access: | http://journalarticle.ukm.my/7565/ http://journalarticle.ukm.my/7565/ http://journalarticle.ukm.my/7565/1/7116-18212-1-SM.pdf |
| Summary: | This study is aimed to assess the financial management efficiency of each insurer/takaful operator in both conventional
and takaful industry. We also identify the operating system that is more efficient among the conventional and takaful system
which involves 20 firms. The results from the slack-based measure (SBM) - data envelopment analysis (DEA) implied that
the average insurers/takaful operators have to improve about 20% if it were to perform the best financial management
practice. Clearly, the inefficiency in both functions of financial management is caused by both the input and output
dimensions. This study also revealed that takaful operators exhibit a relatively more efficient financial management in
terms of risk management than conventional insurers. However, it cannot be confirmed whether one type of operating
system is better than the other system in terms of investment management, as the result is mixed. |
|---|