Original scientific paper
AN EMPIRICAL STUDY OF EFFICIENCY IN CROATIA AND SLOVENIA INSURANCE MARKETS
Darko Medved
Slavka Kavčič
Abstract
In this paper we analyze insurance efficiency in Slovenia and Croatia between 2006 and 2010 using a Data Envelopment Analysis. We perform both intra- and inter- country efficiency surveys. The intra country survey indicates that on average companies in Croatia operate more efficiently than companies in Slovenia. A positive trend of scale efficiency improvement due to mergers and acquisitions which took place in recent years in Croatia is also detected. Nevertheless, the inter-industry analysis indicates that the Slovenian insurance industry dominates Croatian cost and technical efficiency, which shows a low efficiency position of the insurance market in Croatia. Analysis also shows that inefficiency in Croatia is more affected by inefficient internal company operation than in Slovenia.
Keywords
Data Envelopment Analysis; Cost Efficiency; Technical Efficiency; Scale Efficiency; Croatia; Slovenia
Hrčak ID:
80015
URI
Publication date:
1.4.2012.
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