Evaluation of insurance performance, productivity and efficiency-A comparative study

Productivity and efficiency are recognized as cornerstones of a country's financial health and symbol of progress, so there is an abundant focus on the issue by many industries including insurance. Insurance is an integral part of financial services system that needs to sustain by productivity and efficiency for the betterment of system, which is highly emphasized in the present competitive economy. Previously, insurance firms were assessing the productivity and efficiency using ratio analysis that could not make completeness. The present paper discusses on the Ratio Analysis, Index Numbers approach and Frontier Efficiency Methods (FEM) with regard to measuring insurance performance, productivity and efficiency with an upshot of Life Insurance Corporation of India (LICI) and State bank of India Life Insurance (SBILI) as case problem with a comparison.