JOURNAL ARTICLE

The Effect of Branch Office Locations on Technical Efficiency: Evidence from the Indian Life Insurance Industry.

  • Published In: Global Business Review, 2024, v. 25, n. 6. P. 1559 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Siddiqui, Shoaib Alam 3 of 3

Abstract

This article investigates the efficiency and productivity growth of the Indian life insurance industry from 2016 to 2019, with a particular focus on the impact of branch office locations on efficiency. Using slack-based measures (SBM) of data envelopment analysis (DEA) and the Malmquist productivity index, the study analyzes all 24 life insurance companies operating in India, including the state-owned Life Insurance Corporation of India (LIC) and 23 private insurers. Findings reveal significant fluctuations in technical efficiency, with only LIC, Aviva, Bajaj Allianz, Sahara, and Shriram Life Insurance consistently operating efficiently; scale efficiency was observed in only three firms. The study’s double bootstrap regression analysis shows that branch offices in semi-urban and rural areas positively influence efficiency, while metro and urban branches do not have a significant effect. Overall, the industry experienced modest productivity growth driven mainly by technological improvements, and the results suggest that expanding branches in less urbanized areas may enhance insurer efficiency.

Additional Information

  • Source:Global Business Review. 2024/12, Vol. 25, Issue 6, p1559
  • Document Type:Article
  • Subject Area:Law
  • Publication Date:2024
  • ISSN:0972-1509
  • DOI:10.1177/09721509211027427
  • Accession Number:180988056
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