Efficiency and Productivity of Indian General Insurers

Abstract

The present paper evaluates 10 Indian General Insurance Companies comprising of 4 Public Sector Companies and 6 Private Sector Companies from the year 2002-03 to 2009-10 using the increasingly popular technique Data Envelopment Analysis and Malmquist Analysis for computing the Efficiency and Productivity of this particular sector. The study uses two inputs i. e. Capital and Operating Expenses and one output i. e. Net Premium Income. It has been found that the Technical efficiency of the Private Sector Insurers has been 91. 6% which is more as compared to the Technical Efficiency of the Public Sector i. e. 78. 5% indicating that after a decade to liberalization the Private sector has marked its presence in the market.