An Evaluation of Investment Performance of Private Life InsuranceIndustry in IndiaHusain Ashraf S* and Nikita Kumari
Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, India
- *Corresponding Author:
- Husain Ashraf S
Department of Commerce, Aligarh Muslim University
Aligarh, Uttar Pradesh, India
E-mail: [email protected]
Received date: October 20, 2015; Accepted date: November 06, 2015; Published date: November 16, 2015
Citation: Ashraf SH, Kumari N (2015) An Evaluation of Investment Performance of Private Life Insurance Industry in India. Int J Account Res 3:121. doi:10.4172/ijar.1000121
Copyright: © 2015 Ashraf SH, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Data Envelopment Analysis (DEA) model is used to provide valuable information on investment efficiency of private life insurance industry in India. This study utilizes two inputs (shareholders’ investments and policyholders’ investments) and two outputs (net returns on investments to the shareholders and net returns on investments to the policyholders). This study focuses upon 20 private life insurance companies operating in India over a period of 4 years from 2010-11 to 2013-14. Since this study attempts to maximize output, an output oriented DEA model is used. The study finds that investment efficiency of private life insurance industry has improved on Banker, Charnes and Cooper (BCC) model and Charnes, Cooper and Rhodes (CCR) model. The study further highlights that during all years under study, 15% to 40% life insurance companies have been found on the CRS frontier and 40% to 60% life insurance companies have been found on the VRS frontier. With regard to scale efficiency issues, 15% to 40% companies have een operated at their most productive scale over the study period.