In Tables 2 and 3, were port the performance measures and corporate governance
variables for our sample firms in the life insurance and property-liability insurance
industries, respectively.The technical efficiency scores for life insurers in Taiwan, on
average, are approximately 0.871, which implies that firms could have produced their
outputs using 87.1 percent of the inputs actually consumed. The allocative efficiency
scores are 0.789 on average, some what lower than the technical efficiency scores, and
therefore result in a cost efficiency score of 0.716. The results for property-liability
insurers suggest higher technical efficiency scores of 0.939 but similar allocative
efficiency scores of 0.757 and cost efficiency scores of 0.719. The financial performance
measure, due mostly to a nunprofitable return on recent capital markets, shows that
ROA is lower for life insurers (À0.004) than for property-liability insurers(0.024).