Determining the efficiency rating and factors for efficiency of life insurance companies in the Philippines using the two stage data envelopment analysis and panel regression from 2005-2009

Date of Publication

2011

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Ricarte Q. Pinlac

Defense Panel Chair

Krista Yu

Defense Panel Member

Edralin Lim
Catherine Almonte

Abstract/Summary

The life insurance industry plays an important role in the financial market of a country by making investments while ensuring that the funds of the insured circulates even after his death through benefit payments. The penetration of the product in the Philippines is generally weak, with only a 5-6% share in the total assets of the financial system, whereas it holds a 30-40% share in developed countries.

This research aims to determine the efficient life insurance companies from 2005-2009 in the Philippines, as well as identify what factors affect the efficiency of these companies. The first objective is to inform the general public which insurers they can deposit their hard-earned money with. The second objective will give an idea on what sectors the insurers must improve on to be more efficient. The two-stage data envelopment analysis was used to identify the efficiency ratings of the life insurers while the pooled OLS technique was used to identify the factors that affect efficiency. Since the insurance companies generally earn from production activities and investment activities, models for both activities were used.

This research found out that the overall efficient life insurance companies in the country are Generali Pilipinas Life Insurance Company, Inc., Insular Life Assurance Company Ltd., Philam Equitable Life Assurance Co., Philippine AXA Life Insurance Corp., Pru Life Insurance Corporation of UK, Sony Life Insurance Corp., and United Coconut Planters Life Assurance Co. As for factors for improving the production in term of writing more premiums, the DEA sensitivity analysis and pooled OLS found benefit payments as the most statistically significant variable, while the most and only significant variable that affects the capital gains or the investment activities was only total investments.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21256

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

55, [35] leaves : illustrations

Keywords

Insurance companies--Philippines; Insurance--Philippines

This document is currently not available here.

Share

COinS