Application of Two-Stage DEA Technique forEfficiencies Measuring of Insurance Companiesand Banks

摘要

Purpose of the article: The article describe two-stage DEA technique and possibilities of application forefficiency measuring of insurance companies and banks. The article describe critically describe differencesbetween application Two-stage DEA techniques and “classical” DEA techniques in the evaluation of insurancecompanies, banks.Methodology/methods: In this paper was applied secondary research. The secondary research was based onanalysis of papers and literature published about Two-stage DEA techniques.Scientific aim: The aim of this paper is critically describe differences between application and “classical”DEA techniques in the evaluation of insurance companies, banks and describe of possibilities of exploitation inthe evaluation of insurance companies, banks and custom system design of evaluation of insurance companies,banks.Findings: Two-stage DEA technique compare not only the efficiency of overall process but also learn theefficiency of part processes- sub-processes. Using the Two-stage DEA techniques enables to examine theefficiency of each of the two evaluated sub-processes and the product of efficiency of the subjects in differentsub-processes is the same as the efficiency of the overall process. The aim of this approach is to comparethe “contribution” of efficiency of each of the two measured sub-processes with the efficiency of the overallprocess.Conclusions: By complementing steps sequence compact of use of different statistic methods it is thanks totwo-stage DEA technique possible not only to appreciate the efficiency of processes and sub-processes butalso determinate the weaknesses and strengths of analyzing subjects. This will aggravate the practical use oftwo-stage DEA technique in the evaluation of insurance companies and banks.