Economic reform aimed at improving the social welfare is one of the important goals of policy makers. The efficiency of insurance companies and the impact of price liberalization during 1388 have been analyzed in this study. For this purpose, in the first stage, the efficiency of insurance companies is calculated during 1382-90 using a hybrid approach of Gram-Schmidt algorithm and data envelopment analysis. In this stage, firstly, the correlation between the model variables is reduced by Gram-Schmidt algorithm and then the efficiency of the companies is measured by MSBM. In the second stage, the impact of price liberalization on the efficiency of insurance companies is investigated by GEE. The results indicated that the price liberalization has negatively affected the efficiency of insurance companies. Finally, some suggestions have been proposed to enhance the current status.