The Performance of Microinsurance Programs: A Data Envelopment Analysis |
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Authors: | Christian Biener Martin Eling |
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Institution: | Christian Biener and Martin Eling are both at the University of Ulm, Germany. The authors can be contacted via e‐mail: christian.biener@uni‐ulm.de and martin.eling@uni‐ulm.de, respectively. |
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Abstract: | The purpose of this research is to measure the performance of microinsurance programs using data envelopment analysis and to derive implications for the viable provision of microinsurance products. This is a worthwhile exercise given the significant limitations of the existing performance measures used in the microinsurance industry. A single and simple to interpret performance measure can overcome these limitations and provide a sophisticated tool for performance measurement within a multidimensional framework. Moreover, this technique can incorporate the important social function that microinsurers fulfill and provide powerful managerial implications. We illustrate the capabilities of data envelopment analysis using a sample of 20 microinsurance programs and recent innovations from the efficiency literature, such as the bootstrapping of efficiency scores and a truncated regression analysis of efficiency determinants. |
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