Operational Effectiveness of the General Insurance Industry in India: An Analytical Perspective

Authors

  • H T Srinivasa Research scholar, Assistant Professor, Department of commerce, GFGC Nagamangala, Karnataka, India Author
  • Dr. K Venkidasamy Research Supervisor, Assistant Professor, Department of commerce, MGR College, Hosur, Tamilnadu, India Author

DOI:

https://doi.org/10.64229/fxanyc96

Keywords:

Technical Efficiency, Data Envelopment Analysis, Public Sector Insurance, Private Sector Insurance, General Insurance, Managerial Efficiency, Scale Efficiency, ICICI Lombard, United India, Efficiency Comparison, DEA, Indian Insurance Industry

Abstract

This study investigates the technical, managerial, and scale efficiency of public and private sector general insurance companies in India over a twenty-year period (2014–15 to 2023–24). Using an output-oriented Data Envelopment Analysis (DEA) approach, the study evaluates the performance of individual insurers and compares sector-wide efficiency trends. The results reveal that public sector insurers have generally outperformed private counterparts in terms of overall technical efficiency, with United India and Oriental Insurance consistently emerging as high performers. However, private insurers such as ICICI Lombard and IFFCO Tokyo have also shown strong and improving efficiency over the years. Statistical tests, including the Kolmogorov-Smirnov test for normality and significance testing between sectors, highlight increasing performance gaps in recent years. The study concludes with policy suggestions to enhance competitiveness, managerial effectiveness, and scale optimization across both sectors, emphasizing the need for strategic reforms and technology-driven operational improvements.

 

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Published

2025-07-15

Issue

Vol. 1 No. 2 (2025)

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