Evaluating traditional, dynamic and network business models: an efficiency‑based study of Chinese insurance companies
Data envelopment analysis (DEA) is extensively adopted to evaluate the relative efficiencies of a group of insurance companies from a multidimensional perspective. Selecting an appropriate DEA framework for insurance businesses, however, remains ambiguous. We use the slack-based measure (SBM) models...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
The Geneva Association
2021
|
| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/33705/7/Evaluating%20traditional%2C%20dynamic%20and%20network%20business.pdf |
| _version_ | 1796995016808202240 |
|---|---|
| author | Nourani, Mohammad Kweh, Qian Long Ting, Irene Wei Kiong Lu, Wen-Min Strutt, Anna |
| author_facet | Nourani, Mohammad Kweh, Qian Long Ting, Irene Wei Kiong Lu, Wen-Min Strutt, Anna |
| author_sort | Nourani, Mohammad |
| collection | UMP |
| description | Data envelopment analysis (DEA) is extensively adopted to evaluate the relative efficiencies of a group of insurance companies from a multidimensional perspective. Selecting an appropriate DEA framework for insurance businesses, however, remains ambiguous. We use the slack-based measure (SBM) models in DEA to evaluate insurance efficiencies from four perspectives, namely, SBM, network SBM (NSBM), dynamic SBM (DSBM), and dynamic network SBM (DNSBM) frameworks. We present the applicability of DEA to 32 unique companies operating in the Chinese insurance industry over the sample period 2014–2018. Through analyses, we highlight key DEA results and related constraints in reaching the most appropriate performance benchmarks for evaluating insurance companies’ efficiencies. We find that building a network structure for insurance efficiency evaluation is necessary because of the superiority of NSBM and DNSBM results over those of the conventional SBM and DSBM models. After including dynamic effects, we find consistent results in the divisional and overall efficiencies. Overall, this study provides insight for insurance companies to implement more efficient and effective ways to evaluate their performances in terms of profitability and investment in a challenging business environment. |
| first_indexed | 2024-03-06T12:56:07Z |
| format | Article |
| id | UMPir33705 |
| institution | Universiti Malaysia Pahang |
| language | English |
| last_indexed | 2024-03-06T12:56:07Z |
| publishDate | 2021 |
| publisher | The Geneva Association |
| record_format | dspace |
| spelling | UMPir337052022-04-21T05:52:08Z http://umpir.ump.edu.my/id/eprint/33705/ Evaluating traditional, dynamic and network business models: an efficiency‑based study of Chinese insurance companies Nourani, Mohammad Kweh, Qian Long Ting, Irene Wei Kiong Lu, Wen-Min Strutt, Anna HG Finance Data envelopment analysis (DEA) is extensively adopted to evaluate the relative efficiencies of a group of insurance companies from a multidimensional perspective. Selecting an appropriate DEA framework for insurance businesses, however, remains ambiguous. We use the slack-based measure (SBM) models in DEA to evaluate insurance efficiencies from four perspectives, namely, SBM, network SBM (NSBM), dynamic SBM (DSBM), and dynamic network SBM (DNSBM) frameworks. We present the applicability of DEA to 32 unique companies operating in the Chinese insurance industry over the sample period 2014–2018. Through analyses, we highlight key DEA results and related constraints in reaching the most appropriate performance benchmarks for evaluating insurance companies’ efficiencies. We find that building a network structure for insurance efficiency evaluation is necessary because of the superiority of NSBM and DNSBM results over those of the conventional SBM and DSBM models. After including dynamic effects, we find consistent results in the divisional and overall efficiencies. Overall, this study provides insight for insurance companies to implement more efficient and effective ways to evaluate their performances in terms of profitability and investment in a challenging business environment. The Geneva Association 2021 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/33705/7/Evaluating%20traditional%2C%20dynamic%20and%20network%20business.pdf Nourani, Mohammad and Kweh, Qian Long and Ting, Irene Wei Kiong and Lu, Wen-Min and Strutt, Anna (2021) Evaluating traditional, dynamic and network business models: an efficiency‑based study of Chinese insurance companies. The Geneva Papers on Risk and Insurance - Issues and Practice. pp. 1-39. ISSN 1468-0440. (Published) https://doi.org/10.1057/s41288-021-00246-2 https://doi.org/10.1057/s41288-021-00246-2 |
| spellingShingle | HG Finance Nourani, Mohammad Kweh, Qian Long Ting, Irene Wei Kiong Lu, Wen-Min Strutt, Anna Evaluating traditional, dynamic and network business models: an efficiency‑based study of Chinese insurance companies |
| title | Evaluating traditional, dynamic and network business models: an efficiency‑based study of Chinese insurance companies |
| title_full | Evaluating traditional, dynamic and network business models: an efficiency‑based study of Chinese insurance companies |
| title_fullStr | Evaluating traditional, dynamic and network business models: an efficiency‑based study of Chinese insurance companies |
| title_full_unstemmed | Evaluating traditional, dynamic and network business models: an efficiency‑based study of Chinese insurance companies |
| title_short | Evaluating traditional, dynamic and network business models: an efficiency‑based study of Chinese insurance companies |
| title_sort | evaluating traditional dynamic and network business models an efficiency based study of chinese insurance companies |
| topic | HG Finance |
| url | http://umpir.ump.edu.my/id/eprint/33705/7/Evaluating%20traditional%2C%20dynamic%20and%20network%20business.pdf |
| work_keys_str_mv | AT nouranimohammad evaluatingtraditionaldynamicandnetworkbusinessmodelsanefficiencybasedstudyofchineseinsurancecompanies AT kwehqianlong evaluatingtraditionaldynamicandnetworkbusinessmodelsanefficiencybasedstudyofchineseinsurancecompanies AT tingireneweikiong evaluatingtraditionaldynamicandnetworkbusinessmodelsanefficiencybasedstudyofchineseinsurancecompanies AT luwenmin evaluatingtraditionaldynamicandnetworkbusinessmodelsanefficiencybasedstudyofchineseinsurancecompanies AT struttanna evaluatingtraditionaldynamicandnetworkbusinessmodelsanefficiencybasedstudyofchineseinsurancecompanies |