An Empirical Study of Efficiency in Croatia and Slovenia Insurance Markets

Medved, Darko; Kavčič, Slavka

doi:10.1080/1331677x.2012.11517496

Cited by 10 publications

(10 citation statements)

References 20 publications

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“…Considering the research of efficiency of Croatian insurance industry, the existing studies did not completely separate between life and non-life business. Precisely, only Medved & Kavčič (2012) distinct between life and non-life premiums, but they did not make the difference between life and non-life business's inputs. Taking into consideration the difference between life and non-life products, this work analyses efficiency based on separate data for life and non-life insurance for all inputs and outputs.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The first study that encompasses efficiency of Croatian insurance companies refers to the research of Medved & Kavčič (2012). The authors analyse efficiency of insurance companies in Slovenia and Croatia, applying DEA.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Although the majority of the existing studies in the field of efficiency of insurance companies consider a specific country, Croatia is rarely encompassed in the research. According to the authors best knowledge there are two studies on efficiency of Croatian insurance companies (Medved & Kavčič, 2012;Jurčević & Mihelja Žaja, 2013) and one study at cross-country level that includes Croatian insurance industry (Škrinjarić, 2016). However, neither of the existing studies analyse the effect the accession to the European Union (hereinafter: EU) might have on the efficiency of Croatian insurance companies.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Has Accession to the European Union Affected the Efficiency of Croatian Insurance Companies?

Pervan

Ćurak

Kramarić

2021

Zagreb International Review of Economics and Business

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Accession of Croatia to the EU brought legal, regulatory and market changes for the insurance companies. The question that arises is whether the new environment in which the companies operate has improved their efficiency. Accordingly, the aim of this paper is to separately estimate the efficiency of non-life and life insurance industry in Croatia and to compare it through the period before (2009-2012) and after (2013-2018) Croatian accession to the EU. The research is based on the Data Envelopment Analysis and the obtained results indicate an average increase in overall technical efficiency in both, non-life and life sector in period after Croatia’s accession to the EU. Still, this increase was not proved to be significant. Additionally, although increase in pure technical efficiency was significant in non-life sector, an insignificant slight decrease is recorded in life sector. Finally, insurers conducting (non)life business activities are mainly operating at increasing returns to scale.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Has Accession to the European Union Affected the Efficiency of Croatian Insurance Companies?

Pervan

Ćurak

Kramarić

2021

Zagreb International Review of Economics and Business

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show abstract

“…The other methodology is the Stochastic Frontier Method, which allows for random shocks even though two alternative production functions are used to estimate the frontier and efficiency ranking. The first method was used by Medved and Kavcic (2012) in a study regarding efficiency in Croatian and Slovenian insurance markets.…”

Section: Econometric Strategymentioning

confidence: 99%

Stochastic analysis of the economic growth of OECD countries

Fuente‐Mella

Vallina-Hernández

Fuentes-Solís

2019

Economic Research-Ekonomska Istraživanja

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This study examined the determinants of economic development for the 34 member countries of the Organization for Economic Cooperation and Development (OECD) and analysed efficient uses of economic development resource endowments. The methodology included econometric panel data modelling and stochastic frontier analysis, using the Cobb-Douglas production function and trans-logarithmic functional form to analyse data from 2003 to 2012. Economic growth was measured by the gross domestic product (GDP) of each economy. As a result, the determinants of economic development were presented and a ranking of efficiency was obtained for all OECD economies throughout the period of analysis. It was concluded that countries with higher economic growth levels have higher efficiency rankings. For example, countries with higher efficiency rankings were Luxembourg and the U.S.; Chile and Mexico were ranked lower. Finally, there was a positive relationship between growth levels and technical efficiency levels.

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“…Its insurance sector is important part of total financial sector while the adoption of new regulations as a part of the process of becoming an EU member state has posed challenges but also offered opportunities for insurers. Furthermore, efficiency, as an indirect measure of competition, has been largely investigated on the sample of European insurance markets (e. g. Medved and Kavčič 2012;Fenn et al 2008;Cummins and Rubio-Misas 2006;Cummins, Rubio-Misas, and Zi 2004;Mahlberg and Url 2003;Cummins and Turchetti 1996). However, only a few studies have employed the Boone indicator in the context of insurance industry.…”

mentioning

confidence: 99%

The Boone Indicator as Determinant of Croatian Insurance Market Soundness

Kramarić

Miletić

2019

South East European Journal of Economics and Business

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This paper deals with the influence of competition on soundness of Croatian insurers using the Boone indicator when measuring competition. The authors analyse Croatian insurers that operated over the pre-EU accession period 2008 – 2012 as well as in the period 2013 – 2017, i.e. after the accession to the EU. Several firm-level, industry-level and macroeconomic variables are used in the research. The findings of the analysis are twofold. Specifically, the Boone indicator reveals the impact of competition on the performance of efficient insurers in post-EU accession period only accounting for the reallocation effects proving that efficient insurers make higher profits. Regarding the determinants of the insurers’ soundness, premium to surplus ratio and inflation rate play significant role in pre - EU accession period whereas reinsurance and GDP growth rate are statistically significant after EU accession. Moreover, the competition increased in the years after the EU accession. Robustness check provides similar results.

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An Empirical Study of Efficiency in Croatia and Slovenia Insurance Markets

Abstract: In this paper we analyze insurance efficiency in Slovenia and Croatia between 2006 and 2010 using

Cited by 10 publications

References 20 publications

Has Accession to the European Union Affected the Efficiency of Croatian Insurance Companies?

Has Accession to the European Union Affected the Efficiency of Croatian Insurance Companies?

Stochastic analysis of the economic growth of OECD countries

The Boone Indicator as Determinant of Croatian Insurance Market Soundness

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