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An Analysis of General Insurers' Efficiency and Profit Performance
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손해보험회사 효율성 및 수익성 평가에 관한 연구

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Type
Academic journal
Author
Jung Young Jeong (동의대학교)
Journal
The Korean Data Analysis Society Journal of The Korean Data Analysis Society Journal of The Korean Data Analysis Society 제24권 제4호 KCI Accredited Journals
Published
2022.8
Pages
1,381 - 1,390 (10page)
DOI
10.37727/jkdas.2022.24.4.1381

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An Analysis of General Insurers' Efficiency and Profit Performance
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The purpose of this paper is to assess the financial efficiency and profit strength of general insurers by using A.M. Best's rating technique focusing on quantitative standards. A quantitative evaluation of ten general insurers' financial efficiency, profit strength and other operating performance(Growth, Safety) relative to the Best's top group is carried out. The financial evaluation is done in several key efficiency and profitability factors including combined ratio, ROP, ROA, and net investment income ratio. The results show that there is a big gap between domestic general insurers and advanced insures in all areas except net investment income ratio. Also, our results emphasize the need to jointly consider efficiency, profitability, and safety when evaluating insurers financial performance. Therefore, domestic general insurers have to strive to strengthen financial soundness through efficiency and profitability and especially should increase the underwriting profit to become competitive players.

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