Determinants of Croatian Non-Life Insurance Companies’ Efficiency

Authors

  • Tomislava Pavić Kramarić Univerity of Split, University Department of Forensic Sciences
  • Maja Pervan University of Split, Faculty of Economics, Business and Tourism
  • Marijana Ćurak University of Split, Faculty of Economics, Business and Tourism

Abstract

Although a relatively large number of studies have been focused on evaluating efficiency of insurance companies from different aspects, analysis of factors that determine achieved level of insurers’ efficiency is still in their inception. While these studies primarily encompass insurance companies operating in developed insurance markets, such research based on the sample of Croatian insurers, does not exist. Therefore, this paper is focused on the efficiency drivers of the insurance companies that operate in Croatian non-life insurance market. The research is based on data for 18 insurance companies in the period from 2009 to 2019. Applying Data envelopment analysis (DEA) and Truncated regression, the results of the research show that age, ownership and leverage influence the efficiency of non-life insurance companies in Croatia, while the companies’ size and their product diversification are not confirmed as significantly important determinants of the efficiency.

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Published

2022-12-22

Issue

Vol. 13 No. 2 (2022): CRORR

Section

CRORR Journal Regular Issue

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