Assessing the efficiency of Vietnamese insurance industry

This thesis aims to empirically test the efficiency level of 14 insurance companies as a sample size throughout the Vietnam insurance market in 205-2018 by using the nonparametric approach of Data Envelopment Analysis (DEA) as mentioned above. Additionally, Malmquist Productivity Index (MPI) is used to measure the source of a total change of productivity factor to make the research become more comprehensive. The result of DEA model and MPI will be compared to the financial insurance benchmark used in Vietnam, and it is expected to become useful input/output for IRDBs and regulators in transforming and developing the business of Vietnam insurance market. Specifically, this thesis concludes 3 main parts, first, it will begin with the background or overview of Vietnam insurance market, some basic definition about the Life and Non-life insurance firm, and the usual indicators benchmark used by Vietnam insurers particularly to evaluate and rank the insurance firm and its result. This part is covered through chapter 2 of this study. Second, it moves on the definition, assumptions, and some formula, analysis about the DEA-CRS, DEA-CRS, and Malmquist total factor productivity which are the main idea of this thesis to use the comprehensive method to assess the efficiency of Vietnam insurance firm, which is the content of chapter 3 of this paper. Third, the thesis will end with the application of DEA model and Malmquist productivity index in Vietnam insurance industry, the result of this analysis and the comparison with some assumptions might be made through these results, which is what chapter 4 and chapter 5 of this paper covers.