Technical Efficiency of Takaful Industry- A Comparative Study of Malaysia and GCC Countries

The present study empirically investigates the technical efficiency of takaful industry operations in Malaysia and the Gulf Cooperation Council (GCC) countries. Data Envelopment Analysis (DEA) was employed to estimate the technical efficiency of using Constant Returns to Scale (CRS) and Variable Return to Scale (VRS) during the period 2006- 2009. The study reveals that takaful companies operating in GCC countries are more efficient than Malaysian operators that are encouraged to have aggressive marketing and wider distribution channels to capture more demand.