Boosting Efficiency: How Bancassurance Transforms Insurance Cost Dynamics

Abstract

This paper examines whether the bancassurance has attributed to enhancing the cost efficiency of insurance firms, which was the main purpose of the scheme in the first place. In particular, the goal of this paper is to revisit and reverify the results of existing studies that applied the DEA method to estimate the bancassurance effect, by employing additional analysis methods. Although there were some differences in the levels of efficiency each calculated by the three methods, the cost efficiency of life insurers has generally improved since the introduction of bancassurance according not only to the DEA model but most of the other models. Both comparative analysis and multiple regression analysis also support and confirm the results.