|
Post by Sapphire Capital on Jul 11, 2008 7:19:22 GMT 4
Efficiency of European Insurance Companies: Do Local Factors Matter? PAOLO ZANGHIERI ANIA - Italian Association of Insurance Companies; University of Bologna - Department of Economics -------------------------------------------------------------------------------- June 18, 2008 Abstract: This paper tries to assess to what extent the still large differences in insurance markets across EU countries explain differences in individual firms' efficiency. I estimate cost and profit frontiers, using balance sheet data on a sample of European insurance companies for the period 1997-2006. While country specific factors does not seem to affect the efficiency of life insurers they do have a strong influence on non life companies. In particular, insurance penetration, market concentration and specialisation affect positively cost efficiency which translate into higher profit efficiency. Moreover, in non life business, composite insurers seem to be more profit efficient than specialised entities. papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1147704_code414611.pdf?abstractid=1115888&mirid=1
|
|