| dc.description.abstract | This investigation explores the correlation between risk management
variables and the effeciency of insurance companies in Vietnam from 2020 to 2023.
The dataset comprises information obtained from 24 insurance companies,
encompassing both local and international entities operating within Vietnam. This
study utilizes non-parametric Data Envelopment Analysis (DEA) and truncated
regression techniques to identify the risk elements influencing the efficiency of
insurance companies in Vietnam within the framework of constant return to scale
(CRS) and variable return to scale (VRS) models. The empirical results show that:
(1) Under the CRS model, operational risk management and liquidity risk
management have a positive interaction with efficiency, while market risk management
shows a reverse relationship to efficiency. Meanwhile, the credit risk has no impact on
efficiency.
(2) Under the VRS model, operational risk management and liquidity risk
management have a positive interaction with efficiency, whereas credit risk has a
negative impact on efficiency. However, market risk management has no influence on
the efficiency of firms.
Therefore, it is recommended that the insurers and the authorities should
make sound decisions in controlling and allocating company resources to control
company performance and have a precise view of the company's position compared to
rivals, thereby improving the quality of insurance services. | en_US |
