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Wednesday, July 22, 2020 | History

1 edition of Measuring cost efficiency in the UK life insurance industry found in the catalog.

Measuring cost efficiency in the UK life insurance industry

Philip Hardwick

Measuring cost efficiency in the UK life insurance industry

by Philip Hardwick

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Published by Bournemouth University Department of Finance and Law in Poole .
Written in English


Edition Notes

StatementPhilip Hardwick.
ContributionsBournemouth University. Department of Finance and Law. Financial Services Research Centre.
The Physical Object
Pagination32p. ;
Number of Pages32
ID Numbers
Open LibraryOL21239932M

A framework and procedural methodology for measuring the efficiency of the individuals is adapted from the COOPER-framework. The method employed to calculate the efficiency scores is a 2-stage network Convex Nonparametric Least Squares (CNLS) regression solved as a Quadratic Programming (QP) problem in an additive : Eric Couavoux. For the efficiency indicators, cost and profit X-efficiency as well as scale and scope economies were estimated through a model (see Table 2). Costs are represented by the cost-to-income ratio and the cost margin, while profit is proxied by return on capital or return on assets (RoA) and by net interest margin Market structure.

The Economics, Regulation, and Systemic Risk of Insurance Markets Edited by Felix Hufeld, Ralph S. J. Koijen, and Christian Thimann. Diverse and relevant perspectives on the insurance sector, its role and functioning, and the potential systemic risk it could create; Contributions from leading global regulators, industry experts, and academics. Problems in Measuring the Cost of Living •The CPI is an accurate measure of the selected goods that make up the typical bundle, but it is not a perfect measure of the cost of living. 1. Substitution bias •The basket does not change to reflect consumer reaction to changes in relative prices.

  Free Online Library: Efficiency and demutualization: evidence from the U.S. life insurance industry in the s and s. by "Journal of Risk and Insurance"; Business Health insurance industry Analysis Securities Life insurance. Measuring Lending Profitability at the Loan Level: An Introduction FINANCIAL PERFORMANCE market, and uses its own cost of funds as a pricing assumption, the conclusion will invariably be that all of their loans are extremely profitable, and that the bank can offer the lowest loan rates in its market while still reaching.


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Measuring cost efficiency in the UK life insurance industry by Philip Hardwick Download PDF EPUB FB2

Measuring Cost Efficiency in the Property-Liability Insurance Industry Article (PDF Available) in Journal of Banking & Finance 17() April.

To identify likely gainers and losers and to examine the effects of increasing competition on the structure of the UK life insurance industry, the cost inefficiency of UK life insurance companies is analysed. A flexible stochastic cost frontier is estimated for the industry using a sample of 54 companies over five years.

The estimated frontier is then used to compute measures of Cited by: Measuring Cost Efficiency in the U.S. Life Insurance Industry: Econometric and Mathematical Programming Approaches Article (PDF Available) December with. Journal of Banking and Finance 17 () North-Holland Measuring cost efficiency in the property-liability insurance industry* J.

David Cummins Wharton School, University of Pennsylvania, Philadelphia, PAUSA Mary A. Weiss Temple University, Philadelphia, PAUSA Final version received November Escalating prices and periodic availability Cited by: We also use Schmidt and Sickles’ () distribution free approach and the Battese and Coelli model () to estimate 26 Taiwanese life insurance companies’ efficiency, and then analyze the market share, optimal scale, and diversification of product strategy implications for efficient firm operations in the life insurance by: Downloadable (with restrictions).

To identify likely gainers and losers and to examine the effects of increasing competition on the structure of the UK life insurance industry, the cost inefficiency of UK life insurance companies is analysed. A flexible stochastic cost frontier is estimated for the industry using a sample of 54 companies over five years.

Hardwick, P. Measuring cost efficiency in the UK life insurance industry. Applied Financial Economics, 7(1), Hardwick, P., Adams, M. & Zou, H. Corporate Governance and Cost Efficiency in the United Kingdom Life Insurance Industry (European Business Management School Working Paper No.

EBMS//1). Swansea, UK: by: 3. “Measuring Economic Efficiency of the US Life Insurance Industry: Econometric and Mathematical Programming Techniques,” Journal of Productivity Analysis – CrossRef Google Scholar Deprins, E., L.

Simar and H. Tulkens ().Cited by: Downloadable. This paper investigates competition in the Dutch non-life insurance industry indirectly by measuring scale economies and X-inefficiency, assuming that strong competition would force insurance firms to exploit unused scale economies and to push down inefficiencies.

We observe substantial economies of scale (on average 11%) that are larger for smaller firms. This is the cost of using the drugs to provide a year of the best quality of life available – it could be one person receiving one QALY, but is more likely to be a number of people receiving a proportion of a QALY – for example 20 people receiving of a QALY.

Cost effectiveness is expressed as ‘£ per QALY’. In the United States, the world’s biggest insurance market, the property and casualty (P&C) sector is building upon a strong in which the industry saw net income soar 66 percent to US$60 billion, thanks to a percent boost in net premiums written and nearly breaking even on underwriting (after losing US$ billion the year before).

1 US insurer. A number of valuation metrics are more specific to the insurance industry. The Combined Ratio measures incurred losses and expenses as a percentage of earned premiums. A ratio above % means the Author: Ryan Fuhrmann.

The major trends reshaping life insurers. Life insurers are rethinking their strategies, business and operating models. We estimate profit pools in the market will grow from £ billion to £ billion over the next ten years, and growth will come from defined contribution pensions, bulk annuities and drawdown; profits in other lines of business will shrink.

The purpose of this paper is to evaluate the technical efficiency in the Jordan insurance market and examine the internal and external determinants that appear to affect the technical efficiency of the insurance companies.,The study used panel data for 22 insurance companies operating inside Jordan over the period – The author used the data envelopment analysis to Author: Mutasem Mahmoud Jaloudi.

Cummins JD, Weiss MA () Measuring cost efficiency in the property-liability insurance industry. J Bank Finance – Google Scholar Cummins JD, Weiss MA () Analyzing firm performance in the insurance industry Cited by: In the attempt to analyze the performance of the insurance companies in Malaysia and Brunei, this study measures the efficiency of life insurance companies in Brunei and Malaysia for the year – by using the Data Envelopment Analysis (DEA).

In the DEA technique, efficiency is measured by the Malmquist index. The UK life insurance industry has a huge opportunity to become the retail interface between the UK’s workforce and pensioners, and their retirement savings.

We forecast that in 10 years’ time the industry will have £1, BN on insurance platforms, and will be paying pensions of around £35 BN per annum. Productivity in Financial and Insurance Services Productivity Commission Staff Research Note February Shiji Zhao Paula Barnes Jenny Gordon Marcelo Munoz James Hunter.

The views expressed in this research note are those of the staff involved and do not necessarily reflect the views of the Productivity Commission.

Cost-effectiveness analysis is sometimes called cost-utility analysis. It is different to cost-benefit analysis. In cost-benefit analysis, the outcome is described in monetary terms.

For example, if the outcome is preventing one case of HIV you could assign a monetary value to this by adding up the average healthcare costs for an HIV patient. Successfully reducing insurance operating costs Insights from McKinsey’s Insurance ° benchmarking Size.

Size explains only 10 percent of total cost variance in Life, and has no explana tory power in P&C. The initial impression from the results is that insurers barely manage to capture economies of scale in terms of cost per policy on an.

of insurance companies has increased (Turgutlu, Kök & Kasman, 89). In the sector as of63 insurance, pension and reinsurance companies have been operating, of which 38 are non-life insurance, 5 are life insurance and 19 are pension and one is reinsurance companies.

Table 1 shows the. The survey also calls into question other industry credos (Exhibit 2). The first is that larger insurers have an implicit cost advantage. Our survey data show that while size provides some economies of scale, it often creates administrative and operational complexities that impede even larger efficiency gains.

Unit Cost: A unit cost is the total expenditure incurred by a company to produce, store and sell one unit of a particular product or service. Unit costs include all fixed costs, or overhead costs.