The operational efficiency analysis of insurance companies in Thailand

Abstract

© 2017 American Scientific Publishers All rights reserved. An insurance company has competitively offered many products and services suitable for lifestyle of Thai people. Many researchers have devoted several years to study an operational efficiency of insurance companies, focusing on the production technologies. This study employed an approach of two-stage data envelopment analysis (DEA) which divided a whole manufacturing process into two sub-stages; comprising of a production efficiency and profit efficiency. The secondary data of 13 companies were collected from the Stock Exchange of Thailand, starting from 2011–2015. The results showed that the SCBLIF and Falcon’s companies had the highest scores in both sub-stages. In light of the stage of production efficiency, it had a higher score of 0.8710 which was higher than the stage of profit efficiency (0.5550). Therefore, it could be concluded that the stage of profit efficiency was the main cause of an operational inefficiency for Thai insurance companies. Later on, the study applied the matrix of Boston Consulting Group (BCG) to explore the growth rate of production and profitability. The BCG matrix has explicitly provided a manager with benefit strategies to improve a better performance for Thai insurance companies in becoming a price leader and earn more money in the next future.