| A major premise of the financial theory of the firm is that more efficient organizational structures and product distribution systems will, in a competitive market, dominate the industry. In the insurance industry, however, there are many different organizational forms (stock, mutual, Lloyds Association, reciprocals, etc.) and many different distribution systems (direct writers, exclusive agents, independent agents, mail order, etc.). This dissertation will examine the relative efficiency of different organizational forms and distribution systems using a Data Envelopment Analysis (DEA) methodology. Specific applications are made for a rigorous analysis of the U.S. Property and Liability insurance industry. |
