Evaluation of Turkish Insurance Sector in Non-Life Insurance With Data Envelopment Analysis

Abstract

This study is aimed to determine the efficiency levels of the insurance companies in elementary branches in the last three years period in the Turkish Insurance Sector with Data Envelopment Analysis (DEA). DEA is a nonparametric efficiency measurement method. Data Envelopment Analysis is defined as a linear programming based method used to evaluate the relative activities of decision units that produce outputs with similar inputs. Financial and non-financial variables determined by literature review were used in the study. The established model which is based on a variable return-based assumption, Banker-Charnes-Cooper (BCC) model was solved by the DEA-SOLVER program.