Malmquist Indices of Productivity Change in Indian General Insurance Sector

The current study examines the Total Factor Productivity (TFP) of 12 general insurers in India through the Malmquist Total Factor Productivity Index, using the output maximization model. The Malmquist Index measures the productive change and decomposes the TFP into two components, namely efficiency change and technical change. The efficiency change is further decomposed into pure technical efficiency and scale efficiency index. Analysis of TFP reveal that United Insurance is the only company that exhibited a decline in productivity growth. Average Factor Productivity (AFP) scores reveal that both public and private insurers reported a growth in productivity, though private insurers seem to be more productive. [PUBLICATION ABSTRACT]