IDEAS home Printed from https://ideas.repec.org/a/pal/gpprii/v35y2010i1p161-181.html
   My bibliography  Save this article

The Cost Efficiency of Takaful Insurance Companies

Author

Listed:
  • Hale Abdul Kader

    () (Centre for Risk & Insurance Studies (CRIS), Nottingham University Business School, University of Nottingham, Jubilee Campus, Nottingham NG8 1BB, U.K.)

  • Mike Adams

    () (School of Business and Economics, Swansea University, Singleton Park, Swansea SA2 8PP, U.K.)

  • Philip Hardwick

    () (Business School, University of Bournemouth, Fern Barrow, Poole BH12 5BB, U.K.)

Abstract

This study examines the cost efficiency of non-life Takaful insurance firms operating in 10 Islamic countries. Non-parametric data envelopment analysis is used to compute cost efficiency scores and a second-stage logit transformation regression model is then estimated to test the influence of corporate characteristics on these efficiencies. We find that non-executive directors and separating the Chief Executive Officer and Chairman functions do not improve cost efficiency. However, board size, firm size and product specialisation have positive effects on the cost efficiency of Takaful insurers. In contrast, the regulatory environment is found not to be statistically significant in terms of improving cost efficiency. We conclude that our results could have important commercial and policy implications.

Suggested Citation

  • Hale Abdul Kader & Mike Adams & Philip Hardwick, 2010. "The Cost Efficiency of Takaful Insurance Companies," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 35(1), pages 161-181, January.
  • Handle: RePEc:pal:gpprii:v:35:y:2010:i:1:p:161-181
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/gpp/journal/v35/n1/pdf/gpp200933a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/gpp/journal/v35/n1/full/gpp200933a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wanke, Peter & Barros, Carlos Pestana, 2016. "Efficiency drivers in Brazilian insurance: A two-stage DEA meta frontier-data mining approach," Economic Modelling, Elsevier, vol. 53(C), pages 8-22.
    2. repec:rss:jnljms:v5i3p6 is not listed on IDEAS
    3. Fuentes-Castro, Hugo Javier. & Reyna-Bernal, Ana María., 2014. "Comparando con las grandes. Retos para las aseguradoras en reducción de costos," Panorama Económico, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 0(19), pages 7-32, segundo s.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:gpprii:v:35:y:2010:i:1:p:161-181. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.palgrave-journals.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.