MEASURING OVERALL TECHNICAL EFFICIENCY USING DATA ENVELOPMENT ANALYSIS: A CASE STUDY OF PUBLIC AND PRIVATE LIFE INSURERS IN INDIA

The efficient performance of the life insurance companies plays an important role in the growth and development of insurance industry and hence ultimately in overall economy of the country.  The present study attempts to examine the Technical Efficiency of Indian the Public and Private life insurers on the basis of various parameters. For measuring it, no. of agents, operating expenses, and equity capital were taken as inputs and no. of policies and net premium were taken as outputs in the CCR Model of Data Envelopment Analysis (DEA). The time period of the study was taken for 15 years i.e., from 2004-05 till 2018-19. The Public Sector was represented by LIC of India and the private sector was represented by five companies as they hold around 39% of market share of life insurance industry other than LIC. In total these six players together hold around 83% of total market share (Retail Weighted Received Premium) of life insurance industry.

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Keywords: Technical Efficiency, DMUs, CCR Model, Data Envelopment Analysis.


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