the most relevant statistical model to evaluate the insurance companies performance?
can I use more than one statistical model to compare the efficiency of two models?
researchers used to use ROA, ROE and NIM as dependent variable to evaluate the financial performance can I use another measure as a dependent variable?
The performance of a firm can be evaluated by several variables.
The linear regression models with ROA or ROE (that are very correlated to each other) I think is the simplest model if the assumptions of the least square method are fulfilled.
I will suggest to use Data Envelopment Analysis (multiple inputs and outputs) and Stochastic Frontier Analysis and then to compare the results.
A good article is in the link
http://www.tandfonline.com/doi/full/10.1080/1331677X.2017.1305786
Regards,
Alma
You can use mutiples pefirmance models like BSC and its indicators dimenssions
I would say that it depends what kind of performance you would like to measure: are you interested in market performance (ROE, EPS, etc.)? Are you interested in (related) payout performance (i.e. ratio of payments for claims to income)? One possible approach is to set up a SEM model that considers different performance measures and their relationships. Actually, SEM methodology is not very popular in finance literature but it is an established and reliable approach.
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