What drives the technical inefficiency in the Tunisian insurance industry

Abstract

The present paper is focused on estimating technical efficiency (TE) in the Tunisian insurance industry by means of DEA window methodology, while highlighting a window model parametric version. On a first stage, the achieved results emphasize well the persistence of a temporal heterogeneity in technical efficiency variability as well as among firms. Furthermore, the average "parametric window" stemming efficiency discovered to be very close to that derived via the DEA window framework. On a second stage, a special relationship has been established associating inefficiency estimates to two explanatory variables blocks, namely, the company control dominated variables, as well as the outside company control ones. Actually, such a discriminatory permits us to reevaluate the technical efficiency scores of the most inefficient companies with those which best control their efficiency.