EFFICIENCY ANALYSIS OF INSURANCE SECTOR IN TURKEY (2010-2016)

Abstract

This study was carried out to investigate the effectiveness of the insurance companies operating in Turkey with the help of the data envelopment analysis and to develop suggestions for ineffective companies. Besides, it is aimed to determine the amount of inputs that need to be reduced in order for ineffective companies to move to the more effective position.
The importance of insurance, the historical development of insurance, the functions of the insurer, insurance intermediaries and types of insurance will be examined. The study included analysis of 32 companies operating in the insurance sector. According to the findings of the study, 14 of the insurance companies out of 22 of them operating in the non-life sector are found out effectively running for some years while others did not work effectively for any year in the scope of analysis. Similarly, of the 10 insurance companies operating in the life and pension field, 6 are considered as effective for all years while others are not. Input surpluses, the sources of inefficiency, have also been identified. Finally, the measures and recommendations are taken for the development of insurance are listed