Determinants of Productivity of Conventional and Takaful Non-Life Insurers in Egypt: A Two-Stage Malmquist Productivity Index
Author (s)
Maher Abdellatif, Yuantao Xie, Rady Hussein, & Doaa Hasaballa
Abstract
This research aims to analyze total factor productivity and the determinants influencing the productivity of conventional and takaful non-life insurers in Egypt from 2012 to 2021. We used a two-stage Malmquist productivity index to analyze panel data from 17 non-life insurers of both types. The first stage investigated total factor productivity (TFP) utilizing the Malmquist productivity index (MPI) technique of the DEA model. The second stage utilized panel regression analysis to discover the insurer-specific factors influencing productivity. The findings indicate that TFP in the Egyptian non-life insurance sector has progressed by 5% per year from 2012 to 2021. However, the TFP experienced a decrease in 2014 and 2018, with negative growth rates of 3% and 2%, respectively. The decomposition of TFP reveals that technological change (Tch) primarily accounts for overall progress. The change in technical efficiency (EFFch) negatively impacts TFP. Furthermore, on average, takaful insurers showed higher TFP compared to conventional insurers. The findings also showed that the variables of insurer size, reinsurance, insurer age, claims rate, leverage, market share, and operational type significantly influence the growth of total factor productivity for Egyptian non-life insurers. As far as we know, this study is the first empirical evidence for both types of non-life insurers in Egypt regarding estimating TFP and its influencing factors. Consequently, this study will assist policymakers and both conventional and takaful insurers in formulating effective policies aimed at enhancing insurer productivity in Egypt.
Keywords: Total Factor Productivity, Malmquist index, Takaful, Conventional, Egypt.
| Title: | Determinants of Productivity of Conventional and Takaful Non-Life Insurers in Egypt: A Two-Stage Malmquist Productivity Index |
|---|---|
| Author: | Maher Abdellatif, Yuantao Xie, Rady Hussein, & Doaa Hasaballa |
| Journal Name: | International Journal of Science and Business |
| Website: | ijsab.com |
| ISSN: | ISSN 2520-4750 (Online), ISSN 2521-3040 (Print) |
| DOI: | https://doi.org/10.58970/IJSB.2488 |
| Media: | Online |
| Volume: | 42 |
| Issue: | 1 |
| Issue publication (Year): | 2024 |
| Acceptance Date: | 30/10/2024 |
| Date of Publication: | 6/11/2024 |
| PDF URL: | https://ijsab.com/wp-content/uploads/2488.pdf |
| Free download: | Available |
| Page: | 121-137 |
| First Page: | 121 |
| Last Page: | 137 |
| Paper Type: | Research paper |
| Current Status: | Published |
Cite This Article:
Abdellatif, M., Xie, Y., Hussein, R., & Hasaballa, D. (2024). Determinants of Productivity of Conventional and Takaful Non-Life Insurers in Egypt: A Two-Stage Malmquist Productivity Index, International Journal of Science and Business, 42(1), 121-137. DOI: https://doi.org/10.58970/IJSB.2488
Retrieved from https://ijsab.com/wp-content/uploads/2488.pdf
About Author (s)
Maher Abdellatif (Corresponding Author), Faculty of Commerce, Assiut University, Assiut 71515, Egypt. ORCID: https://orcid.org/0009-0007-8274-9080
Yuantao Xie, School of Insurance and Economics, University of International Business and Economics, Beijing 100029, China. ORCID: https://orcid.org/0000-0001-8507-9659
Rady Hussein, Faculty of Commerce, Assiut University, Assiut 71515, Egypt. ORCID: https://orcid.org/0009-0009-3706-735X
Doaa Hasaballa, Faculty of Commerce, Assiut University, Assiut 71515, Egypt. ORCID: https://orcid.org/0009-0009-7923-5809
DOI: https://doi.org/10.58970/IJSB.2488