Labuan captive insurance: an analysis of its performance using DEA
Labuan Financial Services Authority (Labuan FSA) reported that for the Quarter 2, year 2012, the number of licenses issued to Labuan Captive has increased ever since Labuan declared as Labuan International Business and Financial Centre (Labuan IBFC) in the year 2009 to 39. Therefore, this researc...
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Format: | Thesis |
Language: | English |
Published: |
2013
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Subjects: | |
Online Access: | https://eprints.ums.edu.my/id/eprint/17923/1/Labuan%20captive%20insurance.pdf |
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Summary: | Labuan Financial Services Authority (Labuan FSA) reported that for the Quarter 2,
year 2012, the number of licenses issued to Labuan Captive has increased ever
since Labuan declared as Labuan International Business and Financial Centre
(Labuan IBFC) in the year 2009 to 39. Therefore, this research aimed to analyse
empirically the performance of Labuan Captive which focuses on how Labuan
Captive perform in comparison to the other insurance sectors within the Labuan
insurance industry, and how it is affected by the internal factors such as its
financial standing. This research employed a non-parametric approach, which is
Data Envelopment Analysis (DEA) with input orientation measurement to estimate
the technical efficiency for Captive and other insurance companies in Labuan
insurance industry. A sample of all insurance sectors in Labuan insurance industry
is selected over the period 2000-2011. The findings suggested that Labuan Captive
is relatively efficient in comparison to other insurance sectors in Labuan insurance
industry. DEA has been considered as an effective management tools to quantify
captive Labuan performance, in that DEA has fewer limitations than other
econometric approaches in term of the choice of input and output variables
whereby, the performance measure obtained by DEA is sensitive to the
combination of input and output. The DEA method nevertheless, could assist the
industry as an early warning tool as DEA in conjunction with financial variable
analysis is a tool worthy of consideration. |
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