Efficiency Analysis of the U.S. Publicly Held Insurance Industry: A Two-Stage Efficiency Model

View Sample PDF

Author(s): Mary Kay Copeland (Rinker School of Business, Palm Beach Atlantic University, West Palm Beach, FL, USA)and Emilyn Cabanda (School of Business and Leadership, Regent University, Virginia Beach, VA, USA)
Copyright: 2018
Volume: 10
Issue: 1
Pages: 15
Source title: International Journal of Information Systems in the Service Sector (IJISSS)
Editor(s)-in-Chief: John Wang (Montclair State University, USA)
DOI: 10.4018/IJISSS.2018010101

Keywords: Business & Management / Business Information Systems / Business Science Reference / Electronic Services & Service Science

Purchase

View Efficiency Analysis of the U.S. Publicly Held Insurance Industry: A Two-Stage Efficiency Model on the publisher's website for pricing and purchasing information.

Abstract

This paper aims to measure and analyze the efficiency of the US publicly-held insurance industry from 2011 to 2013. The paper uses a two-stage efficiency model: (1) data envelopment analysis (DEA), a non-parametric model for measuring the efficiency of 141 panel data of US publicly-held insurance firms, and (2) stochastic Tobit regression model for determining associations between insurers' financial performance and efficiency. Three significant findings are obtained: (1) There is no evidence that US insurance firms consistently improve in efficiency over time using the input-output mix. (2) There is an overall positive significant association between insurers' financial performance and technical efficiency at a very high confidence level. (3) Type of insurance is found to have a negative and significant effect on efficiency. These new findings add empirical evidence to the efficiency analysis of the US insurance industry.

The IRMA Community

Research IRM

Efficiency Analysis of the U.S. Publicly Held Insurance Industry: A Two-Stage Efficiency Model

Purchase

Abstract

Related Content

IRMA Sponsors