The purpose of this article is to examine the impact of deregulation and liberalization (D&L) on the efficiency of the life insurance industry. Specifically, it uses the Taiwanese experience as an example. The article first examines the efficiency performance of existing (old) domestic firms before and after the D&L. Taiwan's D&L process can be separated into three stages: the pre-D&L period (before 1987), the foreign-entry period (1988-1993), and the post-D&L period (1994-2004) The efficiency performances of old domestic firms to that of the new firms in these three stages are compared. The article also examines the efficiency difference between existing domestic firms and their competitors: domestic firms versus foreign firms in stage 2 and domestic firms versus foreign/new domestic firms in stage 3.
Risk Management and Insurance Review, 11(2), 349-375