Operation Efficiency of Life Insurance Business in Thailand

Abstract

     This research aimed to study the operation efficiency of life insurance business and 19 life insurance companies in Thailand during 2003-2007. The findings revealed that the operation efficiency of Thai life insurance business was moderately volatile. That is, the efficiency was very high during 2003-2004; thereafter it was decreasing during 2004-2006. The efficiency of Thai life insurance business was increasing once more during 2006-2007. Moreover, we found that the production of Thai life insurance business performed decreasing return to scale. In terms of the operation efficiency of each company, the findings revealed that the operation efficiency of 19 life insurance companies were vastly different. The most efficient life insurance company, in average, during 2003-2007 was Siam Samsung Life Insurance Company Ltd. The most efficient insurance company during 2006-2007, was Thanachart Life Insurance Company Ltd. and the life insurance company whose operation efficiency was least volatile was Ocean Life Insurance Company Ltd. The least efficient life insurance company, in average, during 2003-2007 and the life insurance company whose operation efficiency was most volatile was Krungthai Axa Life Insurance Company Ltd., whereas the least efficient life insurance company during 2006-2007 was Max Insurance Company Ltd.