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Boosting Efficiency: How Bancassurance Transforms Insurance Cost Dynamics

Author

Listed:
  • Hyojin Kim
  • Youngsik Kwak
  • Sukho Lee
  • Akash Dania

Abstract

This paper examines whether the bancassurance has attributed to enhancing the cost efficiency of insurance firms, which was the main purpose of the scheme in the first place. In particular, the goal of this paper is to revisit and reverify the results of existing studies that applied the DEA method to estimate the bancassurance effect, by employing additional analysis methods. Although there were some differences in the levels of efficiency each calculated by the three methods, the cost efficiency of life insurers has generally improved since the introduction of bancassurance according not only to the DEA model but most of the other models. Both comparative analysis and multiple regression analysis also support and confirm the results.

Suggested Citation

  • Hyojin Kim & Youngsik Kwak & Sukho Lee & Akash Dania, 2024. "Boosting Efficiency: How Bancassurance Transforms Insurance Cost Dynamics," Accounting and Finance Research, Sciedu Press, vol. 13(4), pages 1-26, November.
    • Handle: RePEc:jfr:afr111:v:13:y:2024:i:4:p:26
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    References listed on IDEAS

    as
    1. Andrew M. Yuengert, 1993. "The measurement of efficiency in life insurance estimates of a mixed normal-gamma error model," Research Paper 9308, Federal Reserve Bank of New York.
    2. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    3. Tziogkidis, Panagiotis, 2012. "Bootstrap DEA and Hypothesis Testing," Cardiff Economics Working Papers E2012/18, Cardiff University, Cardiff Business School, Economics Section.
    4. Yuengert, Andrew M., 1993. "The measurement of efficiency in life insurance: Estimates of a mixed normal-gamma error model," Journal of Banking & Finance, Elsevier, vol. 17(2-3), pages 483-496, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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