Vol. 10 No. 4 (2022): Business & Management Studies: An International Journal
Articles

Measuring the efficiency of non-life insurance companies in Northern Cyprus with data envelopment analysis

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  • Bekir SONBAŞ,
  • Bekir KAYA,
  • Emine ÖNER KAYA
Bekir SONBAŞ
Halkbank, Gönyeli, TRNC
Bekir KAYA
Assist. Prof. Dr., Ankara Hacı Bayram Veli University, Ankara, Türkiye
Emine ÖNER KAYA
Assoc. Prof. Dr., Ankara Hacı Bayram Veli University, Ankara, Türkiye
DOI: https://doi.org/10.15295/bmij.v10i4.2157

Published 2022-12-25

Keywords

  • Hayat Dışı Sigorta Şirketleri, Etkinlik, Veri Zarflama Analizi, Kuzey Kıbrıs
  • Non-Life Insurance Companies, Efficiency, Data Envelopment Analysis, Northern Cyprus

How to Cite

SONBAŞ, B., KAYA, B., & ÖNER KAYA, E. (2022). Measuring the efficiency of non-life insurance companies in Northern Cyprus with data envelopment analysis. Business & Management Studies: An International Journal, 10(4), 1200–1217. https://doi.org/10.15295/bmij.v10i4.2157

Copyright (c) 2022 Bekir SONBAŞ- Bekir KAYA- Emine ÖNER KAYA

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Abstract

Data Envelopment Analysis (DEA) is one of the widely used methods to measure the relative efficiency of insurance companies. The findings of DEA reveal how efficient each insurance company has operated as compared to other insurance companies included in the analysis in transforming inputs to outputs. The purpose of this study is to measure the efficiency of non-life insurance companies operating in the TRNC for the 2019-2020 period using data envelopment analysis. The inputs of the analysis were determined as the assets, paid-in capital and general expenses of non-life insurance companies. The outputs of the analysis are insurance premiums and profit before tax. The relevant literature and data availability were taken into account in determining the variables used in the analysis. Using these variables, the efficiency of 25 non-life insurance companies operating in the TRNC was measured using the CCR model calculated under the assumption of constant return to scale (CRS). According to the results of the analysis, there are six companies, which perform efficiently in both years. In addition, the mean of the efficiency scores for the companies included in the analysis in 2019 and 2020 was obtained as 0.720 and 0.635, respectively.

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