IDEAS home Printed from https://ideas.repec.org/a/igg/jisss0/v10y2018i1p1-15.html
   My bibliography  Save this article

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

Author

Listed:
  • Mary Kay Copeland

    (Rinker School of Business, Palm Beach Atlantic University, West Palm Beach, FL, USA)

  • Emilyn Cabanda

    (School of Business and Leadership, Regent University, Virginia Beach, VA, USA)

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.

Suggested Citation

  • Mary Kay Copeland & Emilyn Cabanda, 2018. "Efficiency Analysis of the U.S. Publicly Held Insurance Industry: A Two-Stage Efficiency Model," International Journal of Information Systems in the Service Sector (IJISSS), IGI Global, vol. 10(1), pages 1-15, January.
    • Handle: RePEc:igg:jisss0:v:10:y:2018:i:1:p:1-15
    as

    Download full text from publisher

    File URL: http://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/IJISSS.2018010101
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Davide Lanfranchi & Laura Grassi, 2021. "Translating technological innovation into efficiency: the case of US public P&C insurance companies," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(4), pages 565-585, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:igg:jisss0:v:10:y:2018:i:1:p:1-15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journal Editor (email available below). General contact details of provider: https://www.igi-global.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.