Acta Universitatis Danubius. Œconomica, Vol 14, No 7 (2018)

The Advantages Of Using Efficiency In The Regulation Of Life Insurance

William Wise


The financial sector is significant in the economic development of any country.  Consequently life insurance is a vital segment of the economy of most countries and hence it is paramount to determine accurately how well life insurance companies (LICs) perform for the benefit of other industries and national economies.  As a key purpose of life insurance regulation is to make such determinations this research paper explores using efficiency within.  The result is an improvement in the life insurance industry and the financial system and so a benefit to overall economies.  

No efficiency paper considers exploiting efficiency in the life insurance regulation.  This article is the first to demonstrate the advantages of doing so, using calculations and model offices.  Findings include efficiency tracking LIC financial outcomes with greater accuracy than does expenses per premium, considered important in regulation.  This study also describes how existing methods and ideas employed in regulation are lacking as it could be improved by using efficiency.  Such improvement would occur in both the overall financial system and the life insurance industry.


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