To calculate the efficiency of insurance companies,we use input and output data from
the Annual Statistical Report of Life Insurance and the Non-Life Insurance Review,
respectively. Furthermore, to generate ourcorporate variables,including voting rights
and cash-flow rights,we collect insurers’ shareholder data from the annual statements
insurers provide to regulators. We include three years of panel data, from 2000 to
2002, pertaining to 35 insurance providers. As of 2002, there were 54 insurers in
Taiwan,including 28 life insurers and 26property-liability insurers. We exclude nine
life insurers and 10 property-liability insurers from our sample because they represent
branch offices of foreign insurers and thus do not offer sufficient details about their
corporate governance structure.