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Box Cox-Fourier flexible functional forms in stochastic metafrontier analysis : the cost efficiency of the insurance industry in Malaysia

Takaful insurance industry is growing rapidly after nearly 30 years of operation. It is therefore desirable for the performance of this industry to be assessed to measure its level of achievement. Since the industry comprises conventional and Takaful insurance industries, then the form of organisa...

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Main Authors: Roziana Baharin,, Zaidi Isa,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2018
Online Access:http://journalarticle.ukm.my/19630/1/jeko_521-11.pdf
http://journalarticle.ukm.my/19630/
https://www.ukm.my/jem/issue/v52i1/
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spelling my-ukm.journal.196302022-09-08T07:53:34Z http://journalarticle.ukm.my/19630/ Box Cox-Fourier flexible functional forms in stochastic metafrontier analysis : the cost efficiency of the insurance industry in Malaysia Roziana Baharin, Zaidi Isa, Takaful insurance industry is growing rapidly after nearly 30 years of operation. It is therefore desirable for the performance of this industry to be assessed to measure its level of achievement. Since the industry comprises conventional and Takaful insurance industries, then the form of organisation may affect the efficiency. This study used the Meta Stochastic Analysis Parametric Approach in order to measure the relationship between efficiency and organisational structure for family Takaful operators and life insurance operators in Malaysia. The analysis of this study applied the modified Box Cox Fourier functional form for a period of time ranging from 2004 to 2015. The findings showed that there is a significant difference in cost efficiency between the Takaful industry and the life insurance industry. Overall, the Takaful industry has lower cost efficiencies than conventional insurance, proving that the form of organisation has an effect on efficiency. The findings also showed that the average difference in cost efficiency is influenced by technology level gaps. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/19630/1/jeko_521-11.pdf Roziana Baharin, and Zaidi Isa, (2018) Box Cox-Fourier flexible functional forms in stochastic metafrontier analysis : the cost efficiency of the insurance industry in Malaysia. Jurnal Ekonomi Malaysia, 52 (1). pp. 135-144. ISSN 0127-1962 https://www.ukm.my/jem/issue/v52i1/
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description Takaful insurance industry is growing rapidly after nearly 30 years of operation. It is therefore desirable for the performance of this industry to be assessed to measure its level of achievement. Since the industry comprises conventional and Takaful insurance industries, then the form of organisation may affect the efficiency. This study used the Meta Stochastic Analysis Parametric Approach in order to measure the relationship between efficiency and organisational structure for family Takaful operators and life insurance operators in Malaysia. The analysis of this study applied the modified Box Cox Fourier functional form for a period of time ranging from 2004 to 2015. The findings showed that there is a significant difference in cost efficiency between the Takaful industry and the life insurance industry. Overall, the Takaful industry has lower cost efficiencies than conventional insurance, proving that the form of organisation has an effect on efficiency. The findings also showed that the average difference in cost efficiency is influenced by technology level gaps.
format Article
author Roziana Baharin,
Zaidi Isa,
spellingShingle Roziana Baharin,
Zaidi Isa,
Box Cox-Fourier flexible functional forms in stochastic metafrontier analysis : the cost efficiency of the insurance industry in Malaysia
author_facet Roziana Baharin,
Zaidi Isa,
author_sort Roziana Baharin,
title Box Cox-Fourier flexible functional forms in stochastic metafrontier analysis : the cost efficiency of the insurance industry in Malaysia
title_short Box Cox-Fourier flexible functional forms in stochastic metafrontier analysis : the cost efficiency of the insurance industry in Malaysia
title_full Box Cox-Fourier flexible functional forms in stochastic metafrontier analysis : the cost efficiency of the insurance industry in Malaysia
title_fullStr Box Cox-Fourier flexible functional forms in stochastic metafrontier analysis : the cost efficiency of the insurance industry in Malaysia
title_full_unstemmed Box Cox-Fourier flexible functional forms in stochastic metafrontier analysis : the cost efficiency of the insurance industry in Malaysia
title_sort box cox-fourier flexible functional forms in stochastic metafrontier analysis : the cost efficiency of the insurance industry in malaysia
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2018
url http://journalarticle.ukm.my/19630/1/jeko_521-11.pdf
http://journalarticle.ukm.my/19630/
https://www.ukm.my/jem/issue/v52i1/
_version_ 1744354628635459584
score 13.211869

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