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DEA Window Analysis of Insurance Sector Efficiency in the Republic of Serbia

Author

Listed:
  • Đurić Zlata

    (University of Kragujevac, Faculty of Economics, Republic of Serbia)

  • Jakšić Milena

    (University of Kragujevac, Faculty of Economics, Republic of Serbia)

  • Krstić Ana

    (University of Kragujevac, Faculty of Economics, Republic of Serbia)

Abstract

Insurance market is characterized by growing competition. This has imposed needs relating to the continuous capacity building of insurance companies, the continuous improvement of operating results and the assessment of the effects of insurers’ financial investment. The ultimate goal of these activities is to implement the planned goals and achieve positive business results. It is evident that the financial stability and efficiency of the insurance sector strengthens the confidence of citizens in this type of financial intermediaries. Bearing in mind the importance of the insurance sector for the financial system and economic system growth and development, the research subject is the analysis of the insurance sector efficiency in the Republic of Serbia. The main research objective is to look at the insurance sector efficiency through the performance analysis of nine selected insurance companies in the period 2007-2018, using DEA window analysis. The analysis and systematization of theoretical research findings, along with empirical data interpretation, description and comparison yielded results pointing to very poor performance of the insurance sector as a whole, because in all years of the observed period the relative average efficiency (technical, pure technical and scale efficiency) was below 100%, especially in the period 2015-2018.

Suggested Citation

  • Đurić Zlata & Jakšić Milena & Krstić Ana, 2020. "DEA Window Analysis of Insurance Sector Efficiency in the Republic of Serbia," Economic Themes, Sciendo, vol. 58(3), pages 291-310, September.
    • Handle: RePEc:vrs:ecothe:v:58:y:2020:i:3:p:291-310:n:1
    DOI: 10.2478/ethemes-2020-0017
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    References listed on IDEAS

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    1. Katerina Fotova Čiković & Violeta Cvetkoska & Mila Mitreva, 2024. "Investigating the Efficiency of Insurance Companies in a Developing Country: A Data Envelopment Analysis Perspective," Economies, MDPI, vol. 12(6), pages 1-20, May.

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    More about this item

    Keywords

    insurance; performance; efficiency; DEA Window Analysis; Republic of Serbia;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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