Evaluating of the Production Efficiency Trend of Insurance Company Using Data Envelopment Analysis (DEA) Method (Case study: Fire, Freight, Aircraft, Marine and Engineering Insurance)

Optimal performance is one of the most important objectives of active companies in business market and insurance companies are no exception to this rule. Hence, this study seeks to measure the production efficiency trend of insurance companies in fire, freight, aircraft, marine and engineering insurance lines using data envelopment analysis (DEA) in three time periods, including 2007, 2011 and 2014. DEA model inputs include natural agencies commission and the average administrative, general and staff costs in each insurance line. The outputs include written premium, loss payment ratio, number of issued policies and market share of insurance company in each insurance line. The results show that the percentage of inefficient insurance companies in fire and aircraft lines in all periods experiencedupward trend. However, this percentage for marine and engineering insurance lineshad downward trend which indicates an improvement in efficiency for these lines during the period under review. Finally, according to the results, inefficiency percentage of insurance companies in freight insurance is also high.