New Cogent Economics and Finance Research from Accra Outlined (Measuring efficiency and productivity changes: A non-parametric analysis of Ghanaian life insurance industry): Economics – Cogent Economics and Finance

2023 DEC 13 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- New research on cogent economics and finance is the subject of a new report. According to news reporting originating from Accra, Ghana, by NewsRx correspondents, research stated, “AbstractEfficiency and productivity measurement in the insurance industry has attracted great interest from academicians, practitioners, financial market analysts, insurance regulators, and researchers; however, the near absence of empirical work on the productivity changes of the life insurance industry in Ghana poses management challenges. The main objective of this paper is to measure the efficiency and productivity changes in the life insurance industry in Ghana.”

Our news reporters obtained a quote from the research from Department of Banking and Finance: “The Ghana National Insurance Commission’s annual report data was used in this study. We employ the non-parametric Malmquist productivity change indices and the bootstrap technique to measure the productivity changes of a sample of 19 out of 20 Ghanaian life insurance firms for the period 2015-2020. The empirical results show that the level of output-oriented technical inefficiency of the life insurance industry in Ghana is approximately 17% over the period 2015-2020. This result provides us with a general guide to identify the periods in which the industry is most and least technically efficient. Also, our findings show that the estimate of total productivity changes has retrogressed about 13% over the period in the Ghanaian life insurance industry. We further identified that the deterioration in the productivity is due to efficiency changes.”

According to the news editors, the research concluded: “The decomposition of the technological changes also reveals that the life insurance industry did not benefit from pure scale efficiency. This study contributes by encouraging the policy makers and managers of life insurance firm to use scarce resources efficiently and productively in order to stay in business.”

For more information on this research see: Measuring efficiency and productivity changes: A non-parametric analysis of Ghanaian life insurance industry. Cogent Economics & Finance, 2023,11(1). (Cogent Economics & Finance - http://cogentoa.tandfonline.com/journal/oaef20). The publisher for Cogent Economics & Finance is Taylor & Francis Group.

A free version of this journal article is available at https://doi.org/10.1080/23322039.2023.2210855.

Our news journalists report that more information may be obtained by contacting Albert Ayi Ashiagbor, Department of Banking and Finance, University of Professional Studies, Accra, Ghana. Additional authors for this research include Raymond Dziwornu, Aku Vivian Gbade, kwasi Offei-Kwafo, Gagakuma Liticia.

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