Analyzing the Technical Efficiency of Insurance Units of the Social Security Organization of Iran

This paper analyzes the technical efficiency of the provincial insurance units of the Iranian social security organization using Data Envelopment Analysis (DEA) approach based on yearly data from 2012 to 2014. To that end, return to scale tests are used to determine the appropriate DEA type for each unit; which the results favor constant returns to scale in these units. Next, constant return to scale and superefficient DEA (introduced by Andersen and Petersen, 1993) models are used to measure the technical efficiency of the units. In addition, two different indices (the network-deepening and network-widening) are introduced and their effects on the efficiency are also investigated. The results of comparing the network indices and technical efficiency of the units revealed that in the large units the technical efficiency has a pro-cyclical and counter-cyclical dynamic with the network deepening and network widening indices, respectively. However, in the small units the direction of changes in the technical efficiency and network indices varies among the units and the results are inconclusive.