Measuring efficiency and productivity changes: A non-parametric analysis of Ghanaian life insurance industry
AbstractEfficiency and productivity measurement in the insurance industry has attracted great interest from academicians, practitioners, financial market analysts, insurance regulators, and researchers; however, the near absence of empirical work on the productivity changes of the life insurance ind...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2023.2210855 |
| _version_ | 1827792266218962944 |
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| author | Albert Ayi Ashiagbor Raymond Dziwornu Aku Vivian Gbade kwasi Offei-Kwafo Gagakuma Liticia |
| author_facet | Albert Ayi Ashiagbor Raymond Dziwornu Aku Vivian Gbade kwasi Offei-Kwafo Gagakuma Liticia |
| author_sort | Albert Ayi Ashiagbor |
| collection | DOAJ |
| description | AbstractEfficiency and productivity measurement in the insurance industry has attracted great interest from academicians, practitioners, financial market analysts, insurance regulators, and researchers; however, the near absence of empirical work on the productivity changes of the life insurance industry in Ghana poses management challenges. The main objective of this paper is to measure the efficiency and productivity changes in the life insurance industry in Ghana. The Ghana National Insurance Commission’s annual report data was used in this study. We employ the non-parametric Malmquist productivity change indices and the bootstrap technique to measure the productivity changes of a sample of 19 out of 20 Ghanaian life insurance firms for the period 2015–2020. The empirical results show that the level of output-oriented technical inefficiency of the life insurance industry in Ghana is approximately 17% over the period 2015–2020. This result provides us with a general guide to identify the periods in which the industry is most and least technically efficient. Also, our findings show that the estimate of total productivity changes has retrogressed about 13% over the period in the Ghanaian life insurance industry. We further identified that the deterioration in the productivity is due to efficiency changes. The decomposition of the technological changes also reveals that the life insurance industry did not benefit from pure scale efficiency. This study contributes by encouraging the policy makers and managers of life insurance firm to use scarce resources efficiently and productively in order to stay in business. |
| first_indexed | 2024-03-11T17:59:24Z |
| format | Article |
| id | doaj.art-d94cf3b3c4de47a7a01d9e68b892b2e5 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-03-11T17:59:24Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-d94cf3b3c4de47a7a01d9e68b892b2e52023-10-17T10:51:05ZengTaylor & Francis GroupCogent Economics & Finance2332-20392023-12-0111110.1080/23322039.2023.2210855Measuring efficiency and productivity changes: A non-parametric analysis of Ghanaian life insurance industryAlbert Ayi Ashiagbor0Raymond Dziwornu1Aku Vivian Gbade2kwasi Offei-Kwafo3Gagakuma Liticia4Department of Banking and Finance, University of Professional Studies, Accra, GhanaFaculty of Accounting and Finance, University of Professional Studies, Accra, GhanaFaculty of Accounting and Finance, University of Professional Studies, Accra, GhanaFaculty of Accounting and Finance, University of Professional Studies, Accra, GhanaDepartment of Accounting, University of Professional Studies, Accra, GhanaAbstractEfficiency and productivity measurement in the insurance industry has attracted great interest from academicians, practitioners, financial market analysts, insurance regulators, and researchers; however, the near absence of empirical work on the productivity changes of the life insurance industry in Ghana poses management challenges. The main objective of this paper is to measure the efficiency and productivity changes in the life insurance industry in Ghana. The Ghana National Insurance Commission’s annual report data was used in this study. We employ the non-parametric Malmquist productivity change indices and the bootstrap technique to measure the productivity changes of a sample of 19 out of 20 Ghanaian life insurance firms for the period 2015–2020. The empirical results show that the level of output-oriented technical inefficiency of the life insurance industry in Ghana is approximately 17% over the period 2015–2020. This result provides us with a general guide to identify the periods in which the industry is most and least technically efficient. Also, our findings show that the estimate of total productivity changes has retrogressed about 13% over the period in the Ghanaian life insurance industry. We further identified that the deterioration in the productivity is due to efficiency changes. The decomposition of the technological changes also reveals that the life insurance industry did not benefit from pure scale efficiency. This study contributes by encouraging the policy makers and managers of life insurance firm to use scarce resources efficiently and productively in order to stay in business.https://www.tandfonline.com/doi/10.1080/23322039.2023.2210855BootstrapGhanalife insurance firmsMalmquist productivitytechnical efficiency |
| spellingShingle | Albert Ayi Ashiagbor Raymond Dziwornu Aku Vivian Gbade kwasi Offei-Kwafo Gagakuma Liticia Measuring efficiency and productivity changes: A non-parametric analysis of Ghanaian life insurance industry Cogent Economics & Finance Bootstrap Ghana life insurance firms Malmquist productivity technical efficiency |
| title | Measuring efficiency and productivity changes: A non-parametric analysis of Ghanaian life insurance industry |
| title_full | Measuring efficiency and productivity changes: A non-parametric analysis of Ghanaian life insurance industry |
| title_fullStr | Measuring efficiency and productivity changes: A non-parametric analysis of Ghanaian life insurance industry |
| title_full_unstemmed | Measuring efficiency and productivity changes: A non-parametric analysis of Ghanaian life insurance industry |
| title_short | Measuring efficiency and productivity changes: A non-parametric analysis of Ghanaian life insurance industry |
| title_sort | measuring efficiency and productivity changes a non parametric analysis of ghanaian life insurance industry |
| topic | Bootstrap Ghana life insurance firms Malmquist productivity technical efficiency |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2023.2210855 |
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