The Efficiency Analysis of Non-life Insurance Companies Active in Turkey

This paper evaluates the technical efficiencies of non-life insurance companies, which are active in Turkey in 2007, using Data Envelopment Analysis (DEA). DEA, which is a non-parametric method, facilitates to examine different input-output components. DEA is a management evaluation tool that assists in identifying the most efficient and inefficient decision making units (DMUs) in the best practice frontier. In this study, as inputs of 23 non-life insurance companies, the number of agents, the number of brokers, fixed assets, shareholders' equity and as outputs the investment incomes, premiums received are used. Empirical results of BCC and CCR models, which are DEA models, show that the most efficient insurance company is RAY. [PUBLICATION ABSTRACT]