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The importance of efficiency for life insurer profit: A study of Canadian life insurance companies

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  • William WISE

Abstract

Only six studies, of more than two hundred and sixty observed concerning life insurance company (LIC) efficiency, truly examine how efficiency affects profits. Four show inefficiency greatly affects LIC (financial) outcome and survivorship. This clearly indicates that LIC efficiency is crucial to assess, significantly enhancing the ability to monitor LICs. The six papers, not exploring profit improvement, contain deficiencies. This paper is the first to analyze the feasibility of life insurers improving profit via efficiency versus other business characteristics. The conclusion is that the best and possibly only process for LICs to increase profit is via efficiency.

Suggested Citation

  • William WISE, 2018. "The importance of efficiency for life insurer profit: A study of Canadian life insurance companies," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(617), W), pages 179-204, Winter.
    • Handle: RePEc:agr:journl:v:4(617):y:2018:i:4(617):p:179-204
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    References listed on IDEAS

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    Cited by:

    1. Wise William, 2020. "The Importance of the Efficiency of Mutual Life Insurers: A Comparison to Stock Life Insurers," Folia Oeconomica Stetinensia, Sciendo, vol. 20(1), pages 474-505, June.

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