Evaluating the Efficiency and Productivity of Insurance Companies with a Malmquist Index: A Case Study for Portugal

This paper estimates changes in total productivity, breaking this down into technically efficient change and technological change by means of data envelopment analysis applied to a representative sample of insurance companies operating in the Portuguese market. The aim of this procedure is to seek out those best practices that will lead to improved performance in the market. We rank the companies according to their change in total productivity for the period 1995-2001, concluding that some companies experienced productivity growth while others experienced a decrease in productivity. The implications arising from the study are considered in terms of managerial policy. Keywords: Portugal; productivity change; Malmquist index