EFFICIENCY ASSESSMENT CONCEPT MODEL FOR FINANCIAL ALLIANCES: BALTIC PENSION FUND MANAGEMENT

Abstract

The purpose of the article is to develop and implement an efficiency assessment concept model for financial alliances based on efficiency assessment of Bancassurance in the pension fund management in the Baltic countries. Tasks of the research include explaining the topicality, studying the Bancassurance, review of two frontier based efficiency measurement techniques - stochastic frontier analysis and data envelopment analysis and its applicability for banking, insurance and pension funds industry as well as Bancassurance efficiency assessment by using stochastic frontier analysis and data envelopment analysis. Methods used are qualitative-monographic method, literature review, document analysis, data evaluation. Quantitative-econometric techniques, including regression and correlation analysis, economic modelling techniques, including stochastic frontier analysis and data envelopment analysis, descriptive statistics methods, cluster analysis. Bancassurance was found to be the dominant business model in the pension fund management in Baltics Pension fund management business is very important for financial groups operating in the Baltic countries because it generates very strong return on equity. Small and medium specialised pension fund management companies proved to be capable of achieving competitive efficiency compared to other companies. [ABSTRACT FROM AUTHOR]