Analysing Efficiency of Insurers in Federation of Bosnia and Herzegovina

DOI

10.2991/aebmr.k.201211.057How to use a DOI?

Keywords

Efficiency, data envelopment analysis, insurance companies, Federation of Bosnia and Herzegovina

Abstract

The main goal of this paper is to estimate the overall and pure technical efficiency as well as returns to scale of insurance companies that operated in 2018 in Federation of Bosnia and Herzegovina while using the input-oriented data envelopment analysis - DEA. The authors employ two input variables including total equity capital and technical provisions as well as one output variable expressed in terms of gross written premium. The obtained results show that higher level of overall technical efficiency is achieved in life insurance segment (86.26%) then in non-life insurance segment (66.13%). The same is true for the pure technical efficiency with values of 89.56% and 84.44% for the life and non-life segment, respectively. Finally, most of the (non)life insurers operate at their sub-optimal scale size.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Maja Pervan
AU  - Tomislava Pavic Kramaric
PY  - 2020
DA  - 2020/12/14
TI  - Analysing Efficiency of Insurers in Federation of Bosnia and Herzegovina
BT  - Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020)
PB  - Atlantis Press
SP  - 345
EP  - 349
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201211.057
DO  - 10.2991/aebmr.k.201211.057
ID  - Pervan2020
ER  -