Cost Efficiency in the UK Life Insurance Industry in the Post-Global Financial Crisis Period
Zata, Masimba Trevor Taderera
The aim of this research project is to adopt a two-stage approach for empirically measuring and determining the level of cost efficiency in the UK Life Insurance industry during and after the Global Financial Crisis (GFC). Stage one employs a Data Envelopment Analysis (DEA) technique with Variable Returns to Scale (VRS) to estimate the cost efficiency scores for the whole UK Life Insurance Industry for the period 2007 to 2015. In the second stage, a panel Tobit regression technique is used to examine the effects on cost efficiency of a set of determinants that are largely drawn from the recent literature on Financial and Risk Management (FRM). The findings suggest that the average cost efficiency in this period was lower than the level previously reported in the literature, but, by 2015, a clear improvement is noted. The findings also suggest that some potentially effective measures to improve operational efficiency include the reduction of the use of reinsurance, increasing firm size and relocation of office space away from Central London.
MetadataShow full item record
The following license files are associated with this item:
Showing items related by title, author, creator and subject.
Through the Looking-Glass and What Alice Found There: Lord Morton’s Dissent in Scottish Insurance Corporation v Wilsons & Clyde Coal Company Limited  AC 462 Wild, Charles; Weinstein, Stuart (Wildy, Simmonds & Hill Publishing, 2012-02-01)
Ward, Damian; Zurbrugg, Ralf (2000-12)This article examines the short-and long-run dynamic relationships exhibited between economic growth and growth in the insurance industry for nine OECD countries. This is achieved by conducting a cointegration analysis on ...
Takaful Insurance: A Critical Evaluation of Takaful Business in the UAE and its Prospects for Growth Abu Yazbek, Firas Hasan (2023-05-03)In 1979, the first Takaful insurance was established in Sudan as an alternative option of conventional insurance which is impermissible by Sharia Compliance. The business witnessed a dramatic prosperity during the mid-years ...