Service innovation efficiency evaluation on non-life insurance industry in Taiwan

Service innovation plays an increasingly significant role in insurance industry. Non-life insurance companies’ managers need to develop a convenient channel prior to the addition of new insurance products. E-commerce is one approach of service innovation which will enable managers to select innovative offerings that are most beneficial to the firm and that will truly have an impact on customer’s choices. This study analyzes empirically the performance or efficiency change of the non-life insurance companies with and without e-commerce in Taiwan. Data envelopment analysis (DEA) is used as the research tool in this study which finds that the efficiency has not significantly improved when e-commerce applied. To improve efficiency in innovative service performance, most of companies should strive for promoting premium from various insurance items and some companies should reduce the number of employee to improve efficiency.