earticle

영어

This study analyzes the impact of restructuring and reorganization on the life insurance industry after the Asian financial crisis by examining the efficiency in the perspective of sales efficiency and investment efficiency respectively. For this we introduced directional distance function(DDF) in the case undesirable output was included. In other words, by introducing premium paid with negative effects as undesirable output in the perspective of sales efficiency, we attempted to prevent distortion of the efficiency analysis that could occur in the case this was not considered. According to analysis results, since 1997 the overall efficiency of insurance companies was improved due to continuous restructuring. Specifically, since 2000 investment efficiency continuously improved due to the reduction of investment operating costs, but sales efficiency on the other hand dropped. In other words, the overall increase of efficiency of insurance companies stems from improved efficiency of asset management instead of rationalization of business.