engleski

Analysing Efficiency of Insurers in Federation of Bosnia and Herzegovina

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.

Efficiency, Data envelopment analysis, insurance companies, Federation of Bosnia and Hercegovina

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