Data Envelopment Analysis with Missing Data: An Application to Life Insurance Industry in Taiwan

Yao-Hung Yang, Yueh-Chiang Lee

Abstract


A fuzzy Data Envelopment Analysis model is adopted in this paper to assess the operational efficiency of life insurance companies in Taiwan. The study was conducted from 2008 to 2012 and the data were taken from Taiwan Economic Journal and related financial statements provided by the Taiwan Insurance Institute. The results indicate that the operational efficiency of insurance companies affiliated to financial holding companies appears to be better than that of insurance companies not affiliated with financial holding companies, signifying that the synergy generated after a financial holding company is formed and the cross-selling between its subsidiary groups are highly beneficial to the management of a life insurance company affiliated to such a financial holding company. The chief contribution of this paper is that, in the past, the data envelopment analysis models applied often could not calculate due to missing input and output data. The study adopts the fuzzy linear mathematics to solve the uncertainty.


Keywords


Financial holding company; Fuzzy data envelopment analysis model; Life insurance; Operational efficiency.

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References


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DOI: http://dx.doi.org/10.18533/jefs.v2i04.86

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