Estimating Revenue Efficiency in Indian General Insurance Companies: A Semi-parametric Econometric Approach
Journal Title: Journal of Operational and Strategic Analytics - Year 2024, Vol 2, Issue 1
Abstract
In the realm of general insurance in India, an econometric investigation was conducted to estimate the revenue efficiency across a selection of 15 prominent, diversified general insurance entities for the fiscal years 2011-12 to 2016-17. Utilizing a semi-parametric methodology, the revenue frontier was constructed under the GAM framework, while the variance components were estimated employing the method of moments. This analysis further explored the influence of revenue efficiency on critical profitability metrics, namely return on equity (ROE) and return on assets (ROA), through the application of instrumental variable regression. The findings provide pivotal insights into the dynamics of revenue efficiency and its consequential impact on the financial performance of general insurance companies in India, offering a substantial contribution to the literature on insurance economics and the methodology of efficiency measurement. The research underscores the significance of adopting semi-parametric models for a nuanced understanding of revenue efficiency, thus paving the way for enhanced strategic decision-making in the insurance sector.
Authors and Affiliations
Ram Pratap Sinha
Analyzing and Enhancing the Resilience of Steel Moment Frame Structures Against Progressive Collapse
The present study scrutinizes the decision-making strategies and enhancement techniques aimed at minimizing progressive collapse in steel moment frame structures. Comparative analyses of both three-story and five-story f...
A Three-Phase Algorithm for Selecting Optimal Investment Options Based on Financial Ratios of Stock Companies
The identification of optimal stock or portfolio options is a critical concern for investors aiming to maximize profitability within financial markets. With the increasing complexity of available alternatives and the gro...
Production Optimization in Manufacturing Industries Using Cobb-Douglas Production Function
In the rapidly evolving industrial landscape, the decision-making process concerning which products to manufacture, their quantity, and the methods of their production has become pivotal. This study endeavors to address...
Evaluation of Criteria in Fruit Production Using the Interval Fuzzy Rough PIPRECIA Method
This study investigates the application of Multi-Criteria Decision-Making (MCDM) techniques in fruit production, specifically focusing on the use of the interval fuzzy rough pivot pairwise relative criteria importance as...
Enhanced Performance Evaluation Through Neutrosophic Data Envelopment Analysis Leveraging Pentagonal Neutrosophic Numbers
Neutrosophic sets, expanded from the constructs of fuzzy and intuitionistic fuzzy sets, can accommodate degrees of truth, indeterminacy, and falsity for each element. This attribute equips them with an aptitude for a mor...