Abstract
This paper measures the X-efficiency of Philippine life insurers for the period 1996-2000. It uses the distribution-free method to estimate efficiency. It also seeks to find conventional accounting measure of performance is most correlated with efficiency. The results show that Philippine life insurers, on average, have 36% higher costs compared to the most efficient firm in the industry. It also finds that among four conventional accounting ratios used in the study, efficiency is most correlated with ROA and ROE. Decision makers in life insurance companies concerned with X-efficiency should therefore pay close attention to these two ratios.
Recommended Citation
Majadillas, Mary Anne
(2002)
"Measurement of Efficiency of Philipine Life Insurers,"
DLSU Business & Economics Review: Vol. 14:
No.
1, Article 3.
DOI: https://doi.org/10.59588/2243-786X.1660
Available at:
https://animorepository.dlsu.edu.ph/ber/vol14/iss1/3
