A two-stage DEA model to evaluate the overall performance of Canadian life and health insurance companies

A two-stage data envelopment analysis (DEA) model is created to provide valuable managerial insights when assessing the dual impacts of operating and business strategies for the Canadian life and health (L&H) insurance industry. This new model allows integration of the production performance and investment performance for the insurance companies and provides management overall performance evaluation and how to achieve efficiency systematically for the insurers involved. The results also show that the Canadian L&H insurance industry operated fairly efficiently during the period examined (the year 1998). In addition, the scale efficiency in the Canadian L&H insurance industry is found in this study.