An analysis on the efficiency of takaful and insurance companies in malaysia: a non-parametric approach

Md Saad, Norma (2012) An analysis on the efficiency of takaful and insurance companies in malaysia: a non-parametric approach. Review of Integrative Business & Economics Research, 1 (1). pp. 33-56. ISSN 2304-1013 (Online), 2304-1269 (CDROM)

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Abstract

This study examines the efficiency of general or non-life takaful and insurance industry in Malaysia during the period 2007 to 2009. In order to measure their efficiencies, the output-input data consists of a panel of 28 general or non-life takaful and insurance companies are used. The most commonly used non-parametric approach, namely, Data Envelopment Analysis (DEA) is adopted to measure the efficiency of the Malaysian takaful and insurance companies. In the DEA technique, efficiency is measured by the Malmquist index. The Malmquist efficiency measures are decomposed into two components: 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 non-life takaful and insurance industry in Malaysia is mainly due efficiency change and the main sources of the efficiency change are both scale efficiency and pure efficiency.

Item Type:	Article (Journal)
Additional Information:	1304/27270
Uncontrolled Keywords:	Data Envelopment Analysis (DEA); Malmquist index; Insurance efficiency; Takaful efficiency.
Subjects:	H Social Sciences > HG Finance > HG8011 Insurance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Prof. Dr Norma Md Saad
Date Deposited:	06 Dec 2012 07:15
Last Modified:	06 Dec 2012 07:32
URI:	http://irep.iium.edu.my/id/eprint/27270

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