PERFORMANCE OF NON-LIFE INSURANCE COMPANIES IN TANZANIA
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Abstract
Thisstudy aims to evaluate relative efficiency in terms of resource utilization in 19 non-life insurance companies in Tanzania covering the year 2014 up to 2017. The study also investigates factors deriving efficiency performance of non-life insurance. Data envelopment analysis model (DEA) was adopted to carry the computation of efficiency score of each company. Findings revealed that out of 19 non-life insurance companies only six (32%) were found to be most efficient during different period under review while the rest of non-life insurance companies (68%) were found to be inefficient. Findings also revealed that fourteen (14) non-life insurance companies equivalent to (74%) were experiencing efficiency score above the average during the period under review. The study recommends that, all non-life insurance company involved in this study should revisit their size since the results revealed that only six (6) were operating at their optimalsize or scale in different years under review and the rest were either large or small in terms of the relationship between the size and activities.
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