Journal article
DEA Analysis of Performance Efficiency in the Australian General Insurance Industry
Journal of New Business Ideas & Trends, Vol.21(1), pp.1-9
2023
Abstract
Purpose – This paper examines the performance efficiency of general insurance companies operating in the Australian General Insurance Sector.
Design/methodology/approach – Financial data for the general insurance companies for the four years 2018 to 2021 was derived from reports produced by the Australian Prudential Regulation Authority (APRA), publicly available on the internet. The model used was data envelopment analysis DEA to analyse the financial data in order to determine the level of efficiency each company had achieved.
Findings – The analysis highlights that five companies achieved full technical efficiency (1.000) consistently over all four years. In 2020 one additional company achieved the full technical efficiency with two more companies joining the list in 2021 – so that a total of eight companies were on the frontier exhibiting full technical efficiency.
Research limitations/implications – This research focused on general insurance companies to the exclusion of companies that were identified as – reinsurers, captive insurers, lenders mortgage insurers, and companies that were in runoff or had only limited exposure.
Details
- Title
- DEA Analysis of Performance Efficiency in the Australian General Insurance Industry
- Authors
- Mitsuaki Ihara (Author)Gregory John Abrahams (Author)Gregory Laing (Author) - University of the Sunshine Coast, Queensland, School of Business and Creative IndustriesRonald William Perrin (Author) - University of Wollongong
- Publication details
- Journal of New Business Ideas & Trends, Vol.21(1), pp.1-9
- Publisher
- Australian Business Education Research Association
- Date published
- 2023
- ISSN
- 1447-9184; 1446-8719
- Copyright note
- Copyright © 2023 JNBIT. Reproduced with permission of the publisher.
- Organisation Unit
- USC Business School - Legacy
- Language
- English
- Record Identifier
- 99735292702621
- Output Type
- Journal article
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