Productivity changes of insurers: Metafrontier Malmquist productivity index and a bootstrapping approach

Qian Long Kweh; Kevin Downing; Wen-Min Lu; Irene Wei Kiong Ting

doi:10.1142/S0217590820500344

Productivity changes of insurers: Metafrontier Malmquist productivity index and a bootstrapping approach

Qian Long Kweh, Kevin Downing, Wen-Min Lu^*, Irene Wei Kiong Ting

^*Corresponding author for this work

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

2 Citations (Scopus)

Abstract

Insurance penetration rate in Malaysia is low at only between 40% and 50%. Following the government’s policy goal of increasing the rate, this study examined metafrontier Malmquist productivity index (MMPI) and drivers of the MMPI among Malaysian insurers. Over the 2009–2017 period, general insurers and life insurers were technology leaders. General insurers had progressive productivity (MMPI) on average, whereas the MMPI values of the life and general insurers and life insurers were in deterioration. Overall, long-term strategic planning and capital investment alongside government’s liberalization to increase competition in the industry are thus necessary.

Original language	English
Pages (from-to)	2259-2280
Journal	The Singapore Economic Review
Volume	69
Issue number	7
Online published	3 Sept 2020
DOIs	https://doi.org/10.1142/S0217590820500344
Publication status	Published - Dec 2024

Research Keywords

Productivity change
Data envelopment analysis
Malmquist productivity index
Metafrontier
Insurance companies

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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title = "Productivity changes of insurers: Metafrontier Malmquist productivity index and a bootstrapping approach",

abstract = "Insurance penetration rate in Malaysia is low at only between 40% and 50%. Following the government{\textquoteright}s policy goal of increasing the rate, this study examined metafrontier Malmquist productivity index (MMPI) and drivers of the MMPI among Malaysian insurers. Over the 2009–2017 period, general insurers and life insurers were technology leaders. General insurers had progressive productivity (MMPI) on average, whereas the MMPI values of the life and general insurers and life insurers were in deterioration. Overall, long-term strategic planning and capital investment alongside government{\textquoteright}s liberalization to increase competition in the industry are thus necessary.",

keywords = "Productivity change, Data envelopment analysis, Malmquist productivity index, Metafrontier, Insurance companies",

author = "Kweh, {Qian Long} and Kevin Downing and Wen-Min Lu and Ting, {Irene Wei Kiong}",

year = "2024",

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doi = "10.1142/S0217590820500344",

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TY - JOUR

T1 - Productivity changes of insurers

T2 - Metafrontier Malmquist productivity index and a bootstrapping approach

AU - Kweh, Qian Long

AU - Downing, Kevin

AU - Lu, Wen-Min

AU - Ting, Irene Wei Kiong

PY - 2024/12

Y1 - 2024/12

N2 - Insurance penetration rate in Malaysia is low at only between 40% and 50%. Following the government’s policy goal of increasing the rate, this study examined metafrontier Malmquist productivity index (MMPI) and drivers of the MMPI among Malaysian insurers. Over the 2009–2017 period, general insurers and life insurers were technology leaders. General insurers had progressive productivity (MMPI) on average, whereas the MMPI values of the life and general insurers and life insurers were in deterioration. Overall, long-term strategic planning and capital investment alongside government’s liberalization to increase competition in the industry are thus necessary.

AB - Insurance penetration rate in Malaysia is low at only between 40% and 50%. Following the government’s policy goal of increasing the rate, this study examined metafrontier Malmquist productivity index (MMPI) and drivers of the MMPI among Malaysian insurers. Over the 2009–2017 period, general insurers and life insurers were technology leaders. General insurers had progressive productivity (MMPI) on average, whereas the MMPI values of the life and general insurers and life insurers were in deterioration. Overall, long-term strategic planning and capital investment alongside government’s liberalization to increase competition in the industry are thus necessary.

KW - Productivity change

KW - Data envelopment analysis

KW - Malmquist productivity index

KW - Metafrontier

KW - Insurance companies

U2 - 10.1142/S0217590820500344

DO - 10.1142/S0217590820500344

M3 - RGC 21 - Publication in refereed journal

SN - 0217-5908

VL - 69

SP - 2259

EP - 2280

JO - The Singapore Economic Review

JF - The Singapore Economic Review

IS - 7

ER -

Productivity changes of insurers: Metafrontier Malmquist productivity index and a bootstrapping approach

Abstract

Research Keywords

UN SDGs

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