International Journal for Asian Contemporary Research, 2021, 1(III): 134-140

Assessing Productivity of Life Insurance Companies in Bangladesh: A Comparison of Ratios, Index Numbers and Frontier Methods

Mohammad Sabbir Hossain and Saiful Islam*

Received: 29 August, 2021; Accepted: 28 September, 2021; Published: 29 September, 2021


Abstract

Given the financial services sector's importance to the economy, the necessity to maintain the productivity of the insurance sector mainly the life insurance sector is very crucial. The life insurance business in Bangladesh has undergone a number of reforms from time to time, as is widely known. The purpose of this study is to evaluate the productivity of all listed life insurance companies of the Dhaka Stock Exchange (DSE) for the time period of 2011-2020. In the past, financial services productivity was measured using ratio analysis or index numbers but in this study to measure the productivity of the life insurance sector ratio analysis, index numbers and frontier methods are used. A frontier efficiency strategy for dealing with many inputs and outputs is presented in this study. It shows the value of the financial ratios, index numbers and frontier approach five life insurance companies are inefficient and others doing well in terms of measuring productivity. This study can help to take the decision to the concerned authority on the overall productivity of the life insurance sector and also can provide good ideas to the further researcher to construct wide research on assessing the productivity of the life insurance sector.

Keywords: Life insurance, productivity, ratio, index numbers and frontier methods.


*Corresponding author: Department of Business Administration, City University, Bangladesh. Email: [email protected]

To cite this article: Hossain, M.S., & Islam, S. (2021). Assessing Productivity of Life Insurance Companies in Bangladesh: A Comparison of Ratios, Index Numbers and Frontier Methods. International Journal for Asian Contemporary Research, 1 (III), 134-140.


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