While there are several studies regarding the technical efficiency of Indian general insurance companies, the field of profit efficiency remained relatively unexplored. The present study seeks to fill this gap. In the present article, two alternative ratio-based approaches have been adopted for the estimation of profit efficiency of Indian general insurers. The profit efficiency scores so derived are then decomposed in to revenue and cost efficiency components. In the final stage, the impact of several contextual variables on the efficiency scores are analysed. The data set for the present study includes information pertaining to 15 general insurance companies for the period 2011–12 to 2016–17. The outcome shows that the public sector insurers have done well in terms of revenue efficiency but needs to be concerned about cost efficiency. Further, the application of pooled ordinary least squares regression show that solvency ratio is an important explanatory variable of profit efficiency. Significance of the impact of return on equity on profit efficiency is, however, contingent on the model chosen.
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