Document Type : Research Paper
Authors
Abstract
Efficiency evaluation, according to the concept of production function in microeconomics has been always in the centre of their attention. This issue for the service supplying firms will be more complicated. The level of efficiency is very crucial for managers and policy makers who lead the human and capital sources.
A study on insurance penetration, insurance accumulation and the share of domestic Net premium on the world Net premium data shows that the insurance industry could not achieve it’s real position in Iran economy. In other side, this industry has been faced to some threatens such as joining Iran to WTO.
Moreover, in recent years the extending private insurance companies cause the necessity of paying attention to the efficiency improvement for the public insurance companies.
Data Envelopment Analysis (DEA) is one of non-parametric methods for estimating production function. This method by using linear programming, compare homogenous firms in an industry that producing similar outputs with same inputs. Efficient and inefficient firms have recognized by DEA. Today this method has expanded application in this field.
This research measured efficiency of 210 branches of Iran, Albors and Asia insurances companies by DEA method and recognized inefficient branches. Also, some recommendations have been explained for efficiency improvement.
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