Organizational form and efficiency: the coexistence of takaful and conventional insurers
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This study analyzes the coexistence of two different organizational forms of insurance, namely Takaful and conventional insurance. We analyze the efficiency of different organizational forms in 13 countries for the period 2007-2011. Technical, allocative, cost, and revenue frontiers are estimated using data envelopment analysis. We test the expense preference hypothesis and efficient structure hypothesis. We find evidence for the efficient structure hypothesis and expense preference hypothesis in selected market segments. The results provide insight into the competitiveness of conventional and Takaful insurers from different countries.
Data envelopment analysis , Efficiency , Takaful , Cross-frontier analysis , Organizational form , Expense preference hypothesis , Efficient structure hypothesis
Ismail, Norashikin and Alhabshi, Syed Othman and Bacha, Obiyathulla Ismath. (2011). Organizational form and efficiency: the coexistence of takaful and conventional insurers. Journal of Global Business and Economic, 3 (1), pp. 122-137.
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