EVALUATION OF TECHNICAL EFFICIENCY OF THE INSURANCE
MARKET IN VISEGRAD GROUP COUNTRIES
Lenka Přečková
Silesian University in Opava, School of Business Administration in Karvina, Univerzitní náměstí 1934/3, 733
40 Karviná, Czech Republic
40 Karviná, Czech Republic
Iveta Palečková
Silesian University in Opava, School of Business Administration in Karvina, Univerzitní náměstí 1934/3, 733
40 Karviná, Czech Republic
40 Karviná, Czech Republic
DOI: https://doi.org/10.31410/limen.2018.643
4th International Scientific – Business Conference LIMEN 2018 – Leadership & Management: Integrated Politics of Research and Innovations, Belgrade – Serbia, December 13, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Engineering Management – Belgrade, Serbia; Modern Business School – Belgrade, Serbia; Faculty of Business and Management Sciences – Novo Mesto, Slovenia; Faculty of Business Management and Informatics – Novo Mesto, Slovenia; Business Academy Smilevski – BAS, Skopje, Macedonia; BAS Institute of Management, Bitola, Macedonia, ISBN 978-86-80194-15-8
Abstract
The aim of the paper is to estimate the technical efficiency of Visegrad Group
Countries using the Data Envelopment Analysis. We employed the Data Envelopment Analysis
model, namely non-oriented Slack-Based Measure model with variable return to scale to
measure the efficiency of insurance market in Visegrad countries within the period 2009-2016.
The insurance market in Visegrad countries has changed during the last two decades. Stable
and efficient insurance industry is important to efficient economy. Therefore, the analysis of
efficiency of insurance companies is important topic. We found that the average efficiency of
insurance market in Visegrad countries was around 65-80%. There were differences in
individual insurance companies and individual insurance market. The most efficient was the
insurance industry in Hungary and Poland and the least efficient in Slovakia. The development
of efficiency was almost stable, the efficiency decrease in 2012 and 2014. The reason of
inefficiency was decrease in premium written and net income and the high level of costs.
Countries using the Data Envelopment Analysis. We employed the Data Envelopment Analysis
model, namely non-oriented Slack-Based Measure model with variable return to scale to
measure the efficiency of insurance market in Visegrad countries within the period 2009-2016.
The insurance market in Visegrad countries has changed during the last two decades. Stable
and efficient insurance industry is important to efficient economy. Therefore, the analysis of
efficiency of insurance companies is important topic. We found that the average efficiency of
insurance market in Visegrad countries was around 65-80%. There were differences in
individual insurance companies and individual insurance market. The most efficient was the
insurance industry in Hungary and Poland and the least efficient in Slovakia. The development
of efficiency was almost stable, the efficiency decrease in 2012 and 2014. The reason of
inefficiency was decrease in premium written and net income and the high level of costs.
Key words
Insurance sector; Visegrad Group countries; Technical efficiency; DEA.
