Cost efficiency analysis of public sector general insurers by fuzzy DEA approach

This paper aims to analyse the cost efficiency of the Indian public sector general insurers by upholding the unit score under any variations in the input cost connected with its price. The behavioural objective is to minimize the cost of the inputs by considering technical and allocative efficiencies from the analysis. Input oriented measures are computed for both CRS and VRS scales under fuzzy Data Envelopment Analysis (DEA) for the period of 5 years from 2016 to 2017 to 2020–2021. Deployment of Net claims paid as output and Commission paid, Number of Employees, Debt capital as inputs with their respective prices vectors forms the source of secondary data from Insurance Regulatory and Development Authority of India. This study also revealed the cost minimizing input quantities that each firm should have been used to maximize their efficiency score.