Evaluating the Efficiency of Indian Life Insurance Sector

2020 ◽  
pp. 72-80
Keyword(s):  
Life Insurance ◽  
Secondary Data ◽  
Private Life ◽  
Annual Reports ◽  
Insurance Companies ◽  
Operating Characteristics ◽  
Entire Study ◽  
Insurance Sector ◽  
Life Insurers ◽  
Using Data

ABSTRACT The purpose of study was to investigate the technical efficiency of Indian life insurance companies using data envelopment analysis (DEA) to find the reasons for inefficiency. It aimed to analyze the efficiency of all the 24 life insurance companies operating in India for the period 2013-2017 using DEA based on secondary data collected from the Insurance Regulatory and Development Authority Annual Reports. Findings indicated that the state life insurer, that is, Life Insurance Corporation (LIC) was efficient throughout the entire study period. The private life insurance companies exhibited variations in their performance levels as they were comparatively new in the life insurance sector and of different sizes. Some private life insurers operated efficiently, while some private life insurers were less productive using excessive capital; on the other hand, few life insurers grew fast using technology. The methodology employed in this study estimates relative efficiencies without assuming any functional form; as a result, the proper comparison of input utilized with the output produced was not possible. The study brought into light the operating characteristics and efficiencies of all the Indian life insurance companies during the period 2013-2017 and therefore holds important insights for policy makers and practitioners as well as for the decision makers.

Total Factor Productivity Growth of Indian Life Insurance Companies: A Malmquist Approach

2021 ◽  
pp. 232-236
Keyword(s):  
Total Factor Productivity ◽  
Life Insurance ◽  
Productivity Growth ◽  
Malmquist Index ◽  
Secondary Data ◽  
Private Life ◽  
Annual Reports ◽  
Insurance Companies ◽  
Factor Productivity ◽  
Insurance Sector

This study aimed to investigate the productivity growth of Indian life insurance companies using the Malmquist index. This study analyzed all the 24 life insurance companies' productivity performance in India from the financial year 2012-2013 to 2016-2017 using the Malmquist index based on the secondary data collected from Insurance Regulatory and Development Authority's Annual Reports. Findings indicated that the total factor productivity (TFP) of the life insurance sector increased at an average of 27.6 percent during the study period. On average, this improvement was ascribed to an efficiency improvement of 5.5 percent and a technological improvement of 20.9 percent. The results also indicated that the private life insurers experienced higher productivity growth of 30.2 percent than the state-owned Life Insurance Corporation of India's 17.2 percent. This is the first study that comprehensively analyzed the changes in total factor productivity of the Indian life insurance sector. The study holds important and practical insights for policymakers, practitioners, and decision-makers.

A DEA-investigation of efficiency of the Indian general insurance during recession

2014 ◽  
Vol 11 (1) ◽  
pp. 115-136 ◽  
Author(s):  
Santanu Mandal ◽  
Surajit Ghosh Dastidar
Keyword(s):  
Malmquist Index ◽  
Secondary Data ◽  
Annual Reports ◽  
Insurance Companies ◽  
Operating Characteristics ◽  
Content Type ◽  
Insurance Sector ◽  
General Insurance ◽  
Using Data ◽  
The Impact

Purpose – The purpose of this paper is to investigate the efficiency analysis of the Indian general insurance sector using data envelopment analysis (DEA) and subsequently assess the impact (if any) of the global slowdown on the performance of the allied sector. Design/methodology/approach – The paper aims to analyze the operating performance of 12 general insurance companies in India between 2006-2007 and 2009-2010 using DEA based on secondary data collected from Insurance Regulatory and Development Authority Annual Reports. Findings – Findings clearly indicate that the global economic slowdown has severely affected the performance of the private sector companies; while the public sector companies exhibited relatively lesser variation in performance levels. Research limitations/implications – The methodology employed in the study estimates relative efficiencies without assuming any functional form; as a result the proper comparison of input utilized with the output produced is not possible. Several other tools like Malmquist Index and two-stage procedure have not been used. Originality/value – The study brings into light the operating characteristics and efficiencies of the Indian general insurance sector during the global slowdown and therefore holds practical value for policy makers and practitioners as well as for the decision makers of the firms employed in the study.

scholarly journals An Analysis of Efficiency of General Insurance Industry in India

2020 ◽  
Author(s):  
Abhijit Sinha ◽  
Kalpataru Bandopadhyay
Keyword(s):  
Public Sector ◽  
Insurance Industry ◽  
Secondary Data ◽  
Annual Reports ◽  
Data Envelopment ◽  
The Public ◽  
Insurance Sector ◽  
Life Insurers ◽  
Significant Difference ◽  
Using Data

It is well known that the overall insurance sector in India has been undergoing a series of reforms from time to time. The drastic change that re-designed the contours of the industry is the implementation of the Malhotra Committee Recommendations which opened up the landscape to the private non-life insurers in 2000. The present study has been taken up to determine the efficiency of the non-life sector and the insurers using Data Envelopment Analysis (DEA). The empirical research also aims to statistically test whether there is any year-wise significant difference between the two sectors in respect of the overall efficiency. For the purpose, appropriate statistical test is applied. The study is based on secondary data collected from the Insurance Regulatory Authority of India (IRDA) Annual Reports. The sample size for this study is twelve including all the four insurers from the public sector and the remaining from the private sector. The results of the analysis showed that in terms of technical and pure technical efficiency, the overall result of the public sector surpasses that of the private. However, the findings of the Mann-Whitney U Test revealed that the result with respect to the statistical difference is mixed.  

Indian Life Insurance Market and Corporate Performances: A Study of Selected Firms

2016 ◽  
Vol 4 (1) ◽  
Author(s):  
Joy Chakraborty ◽  
Partha Pratim Sengupta
Keyword(s):  
Market Share ◽  
Life Insurance ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Insurance Sector ◽  
Life Insurers ◽  
Company Limited

In the pre-reform era, Life Insurance Corporation of India (LICI) dominated the Indian life insurance market with a market share close to 100 percent. But the situation drastically changed since the enactment of the IRDA Act in 1999. At the end of the FY 2012-13, the market share of LICI stood at around 73 percent with the number of players having risen to 24 in the countrys life insurance sector. One of the reasons for such a decline in the market share of LICI during the post-reform period could be attributed to the increasing competition prevailing in the countrys life insurance sector. At the same time, the liberalization of the life insurance sector for private participation has eventually raised issues about ensuring sound financial performance and solvency of the life insurance companies besides protection of the interest of policyholders. The present study is an attempt to evaluate and compare the financial performances, solvency, and the market concentration of the four leading life insurers in India namely the Life Insurance Corporation of India (LICI), ICICI Prudential Life Insurance Company Limited (ICICI PruLife), HDFC Standard Life Insurance Company Limited (HDFC Standard), and SBI Life Insurance Company Limited (SBI Life), over a span of five successive FYs 2008-09 to 2012-13. In this regard, the CARAMELS model has been used to evaluate the performances of the selected life insurers, based on the Financial Soundness Indicators (FSIs) as published by IMF. In addition to this, the Solvency and the Market Concentration Analyses were also presented for the selected life insurers for the given period. The present study revealed the preexisting dominance of LICI even after 15 years since the privatization of the countrys life insurance sector.

scholarly journals Measurement of Financial Soundness of Life Insurance Companies in Bangladesh: An Empirical Study

2021 ◽  
pp. 29-43
Author(s):  
Dr. Razu Ahmed
Keyword(s):  
Life Insurance ◽  
Stock Exchange ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Annual Reports ◽  
Insurance Companies ◽  
Financial Health ◽  
Financial Soundness ◽  
Depth Study ◽  
Z Scores

Purpose: The study strives to measure insurance companies’ financial soundness in Bangladesh with reference to private sector life insurance companies listed in the Dhaka Stock Exchange (DSE). Methods: CARAMELS ratio analysis and multiple discriminate analysis (MDA) have been employed to determine the results using secondary data sources collected from annual reports for ten-year DSE listed companies. Findings: The study identified a satisfactory capital adequacy ratio (CAR) with a decreasing trend. Reinsurance and actuarial ratio indicate that companies hardly participate in reinsurance. In most cases, all selected companies’ expense ratio during the study period is more than the standard (20 %) of the Insurance Development and Regulatory Authority (IDRA). All the selected insurance companies hold more liquid assets than the necessity. Z scores depicted that all the selected companies are potentially sick position in terms of financial health. Originality/Value: This study measured the financial soundness of life insurance companies in Bangladesh. No in-depth study was conducted in Bangladesh, particularly on measuring the financial soundness of life insurance companies.

scholarly journals Growth of Indian Life Insurance Density and Penetration

2017 ◽  
Vol 16 (1) ◽  
pp. 1-20
Author(s):  
R Sivarama Prasad ◽  
R S NSharma
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Private Life ◽  
Insurance Sector ◽  
Life Insurers ◽  
Life Insurance Industry ◽  
Insurance Density ◽  
The Government ◽  
Set Up ◽  
Indian Insurance

The Government of India nationalized insurance industry in 1956 on 19th Januaryleading to the amalgamation of154 Indian, 16 non-Indian Insurers and 75 provident societies, in total 245 Indian and foreign insurers, to form the Life Insurance Corporation of India. The Life Insurance Corporation of India, a public sector corporation, enjoyeda monopoly in the business for four decades until the entry of private life insurers with foreign joint ventures having 26% Foreign Direct Investment(FDI).As per one of the major recommendations of Sri R N Malhotra committee, on 19th April 2000, Insurance Regulatory and Development Authority was set up by the Government of India through the passing of an act of the Parliament. The IRDA aimed to promote insurance and protect the insured. Since its formation, the IRDA has been proving itself successful in promoting orderly growth and development in Indian Insurance sector. This study is an attempt to study life insurance density and penetration in Indian life Insurance industry toassess the growth in theexpansion of life insurance business in India. An analysisis made, and some conclusions are drawn with the help of growth percentages and trend calculations

scholarly journals An Analysis of the Performance of General Insurance Companies in India

2019 ◽  
Vol 8 (1) ◽  
pp. 20-27
Author(s):  
Soheli Ghose ◽  
Raman Kumar
Keyword(s):  
Insurance Industry ◽  
Secondary Data ◽  
Annual Reports ◽  
Insurance Companies ◽  
Insurance Sector ◽  
General Insurance ◽  
Growth Prospects ◽  
Rapid Pace ◽  
The Stability ◽  
Pro Forma

The General Insurance Industry in India is growing at a very rapid pace. This is an empirical research based on secondary data collected from Annual Reports and Pro-forma Schedules of IRDA. An Excel data Model was created to taken in the core figures of GWP, NEP, NP and others of 4 General Insurance Majors to calculate other relevant ratios as need for the analysis. The objectives of this study are to analyze a few General Insurance companies in India and core Ratios related to the Insurance Sector only and to comparatively analyse Retention ratio, Total Claims Incurred, Earned Incurred Loss Ratio, and Combined Ratio. The conclusion report has been framed on the basis of which company seems to be the best with respect to its Future Growth prospects, Risk prospects and the stability of its growing business. Out of the companies analyzed, TATA-AIG GENERAL INSURANCE has a good future prospect.

scholarly journals ROLE OF TALENT MANAGEMENT PRACTICES ON EMPLOYEE RETENTION: A CORRELATION STUDY WITH SPECIAL FOCUS ON SELECTED INDIAN LIFE INSURANCE COMPANIES

2020 ◽  
pp. 61-66
Author(s):  
Dr. Babita Yadav
Keyword(s):  
Sample Size ◽  
Organizational Performance ◽  
Life Insurance ◽  
Employee Retention ◽  
Management Practices ◽  
Talent Management ◽  
Private Life ◽  
Insurance Companies ◽  
Life Insurers ◽  
The Right

Employee retention and talent management have been a critical issue for many national and global level organizations. People are the most valuable asset and their development in terms of skills, knowledge and abilities gives strength to an organization to achieve desired outcomes. Talent management practices aimed at getting the right person in the right job and to get the best out of their right people. The study aims to understand the role and relation of various talent management practices on employee retention in Life Insurance sector. The nature of study is descriptive type and depends on both primary and secondary data. The total sample size was 100 comprising of all levels of employees and selected through non-probability purposive sampling method. The data collected from primary data were analyzed using descriptive statistic and correlation method. The main finding of the study indicate that there is a positive relationship among various dimensions of talent management practices such as training & development, rewards & compensation, performance management on employee retention. The present study cannot be generalized because the sample size is inadequate and confined to only four private life insurers. The study concludes that by effective talent management practices, the top management of private insurance companies can improve retention rate of employees and thus enhances overall organizational performance. Therefore, the top level managers can adopt various talent management strategies in reducing attrition and thereby improving employee retention and organizational performance. KEYWORDS: Talent management practices, Employee retention, Private Life Insurers and Organizational performance.

scholarly journals Evaluating Performance of Insurance Sector in Pakistan Through Benchmark Performance Indicators

2021 ◽  
Vol VI (I) ◽  
pp. 363-372
Author(s):  
Bakhtawar ◽  
Kashif Hamid ◽  
Ali Raza
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Insurance Companies ◽  
Insurance Sector ◽  
Moderate Growth ◽  
Investment Returns ◽  
Total Investment ◽  
Overall Performance ◽  
Grey Relation

Benchmarking has been very important in measurement, comparison, and improvement. Important benchmarking indicators such as leverage, liquidity, stock performance, profitability, asset utilization and growth are used to examine the performance of various companies in different businesses. The current study is based on secondary data, which were collected from annual reports of 14 insurance companies of the Listed Pakistan Stock Exchange during the period of 2014-2018. For this purpose, the Technique for order Preferences by the Similarity to Ideal Solution (TOPSIS) based on Grey Relation Analysis (GRA) has been used. The findings of the study help managers of moderate growth and low growth insurance companies to formulate policies to improve their performance by looking at the policies of highly growing Insurance companies. The results concluded that overall ranking of insurance companies from 2014 to 2018, JLIL ranked 1st in overall performance in the year 2014. It is due to high net sales and total investment returns as compared to other insurance companies.

scholarly journals A STUDY ON SERVICE QUALITY PERCEPTION OF POLICYHOLDERS ABOUT PRIVATE LIFE INSURANCE COMPANIES IN TIRUNELVELI DISTRICT

2017 ◽  
Vol 5 (6) ◽  
pp. 619-626
Author(s):  
C.Eugine Franco ◽  
I Meenakshi
Keyword(s):  
Service Quality ◽  
Life Insurance ◽  
Insurance Industry ◽  
Private Life ◽  
Insurance Companies ◽  
Business Success ◽  
Infrastructure Development ◽  
Quality Perception ◽  
Insurance Sector ◽  
Important Means

Insurance sector plays a very important role in the development of any economy also, as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. The current scenario in the insurance industry is a complex and competitive environment tinged with little stability. With the liberalization and globlisation in insurance, service quality has become an important means of differentiation and path to achieve business success. Such differentiation based on service quality can be a key source of competitiveness for insurance companies and hence have implication for leadership in such organizations. With the increasing demands of customer, insurance sector has become competitive. The purpose of the present study is to measure the service quality perception of customers about Private Life Insurance Companies.

Sign in / Sign up

Export Citation Format

Share Document