Assessment of Efficiency, Ranking and Productivity in the Insurance Organization (Tamin-e-Ejtemae) with Data Envelopment Analysis and Malmquist Approach

Subject Areas : Management Accounting

Farzaneh Heidarpoor ¹ ( نویسنده اول و مسئول مکاتبات )
Fahime Dehghani ² ( ندارد )

Received: 2009-08-11 Accepted : 2009-10-09 Published : 2009-07-23

Keywords: Efficiency, Productivity, Constant Return to Scale(CRS), Variable Return to Scale(VRS), Data envelopment analysis(DEA), Malmquist Approach,

Abstract :

Continuous growthing  in  the service part is an important subject  in the developed economic and competition world. Thus assessment of efficiency and productivity and recognizing the activity of parts are an important aim for an organization to reach the targets point. So , this study illustrates the efficiency, productivity and ranking of the insurance s parts of tamin-e-ejtemae with two approach: Data Envelopment Analysis(DEA) & Malmquist  and comparing  these two methods. The main targets are recognizing   inefficiency parts , peers for them, input slacks and determining  how is the return to scale(CRS or VRS). For exact assessment of  efficiency  and ranking , all of the insurances parts in Tehran (31 DMU) has been considered during 1385-1386. The reasons under VRS show that the average of scale efficiency, X- efficiency and technical efficiency are 0.786, 0.921, 0.731 , so scale inefficiency X- inefficiency and  technical inefficiency are 0.214, 0.79, 0.269. Under the Malmquist  approach although  scale efficiency, X- efficiency and  technical efficiency decreased , the technological efficiency had better result than another . Totally productivity has the positive process and 4% has growthed . So the first hypothesis confirmed that the reasons of the efficiency, ranking and productivity in the insurances parts are similar with DEA and Malmquist approach. The second hypothesis did not confirm that the level of the efficiency has equivalent with the ranking of insurances parts. In this study, targets show that parts of insurance can increase efficiency with decrease inputs, so the third hypothesis has confirmed