Document Type : Original Research Paper
Authors
1 Department of Financial Engineering, Khwaja Nasiruddin Toosi University of Technology, Tehran, Iran
2 Department of Industrial Engineering, University of Science and Technology, Tehran, Iran
Abstract
Reforming institutions with the aim of improving society's welfare is one of the goals of economic policymakers. In this research, the efficiency of insurance companies and the effect of reforming the rate and tariff system (institutional change) in 2018 have been analyzed. For this purpose, in the first stage, the efficiency of insurance companies during the years 1382-1390 has been calculated with the combined approach of Gram-Schmidt and data coverage analysis. At this stage, first, the correlation between the variables of the model is reduced by the Gram-Schmidt algorithm, and then the efficiency of the companies is calculated by the MSBM model, which has the ability to deal with negative numbers. In the second stage, the effect of liberalizing the tariff system and other explanatory environmental variables on the efficiency of insurance companies during 9 years has been investigated by the GEE model. The results of the research showed that the reform of the tariff system had a negative effect on the efficiency of insurance companies and caused a decrease in the efficiency of insurance companies. At the end, suitable solutions are proposed to get out of the current situation.
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