Organizational Performance of Brazilian Life and Providence Insurance Companies’: A DEA Approach

Abstract

The performance evaluation is something important in management of all sectors. Doing this, in this sense, the organizations manager become capable to monitor, compare and, even though, correct the performance of the same one. In this sense, the efficiency measurement is the base for the organization survival in a competitive environment. In this sense, this study looks for, through DEA (Data Envelopment Analysis) methodology, using constant returns of scale (CRS) and output and input orientations, to analyze the performance of life and providence insurance companies in 2005 using three models. The first model searches for efficiency of each institution through the analysis of the inputs indicators: Benefits and Claim Ratios to obtain Financial Result (output). The second one searches for efficiency through the analysis of the same inputs to obtain Operational Profitability (output). Finally, the last one combines all inputs and outputs. The results show that companies with better performance are not, necessarily, the biggest one and nor related to big financial groups.