Efficiency of Macedonian Insurance Companies: A DEA Approach
Journal of Investment and Management
Volume 4, Issue 2, April 2015, Pages: 61-67
Received: Jul. 9, 2015; Accepted: Jul. 23, 2015; Published: Aug. 11, 2015
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Author
Vesna Micajkova, Integrated Business Faculty, Skopje, Macedonia
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Abstract
The purpose of this paper is to estimate the efficiency of the insurance sector of Republic of Macedonia for the period 2009-2013. Technical, pure technical and scale efficiency of 11 Macedonian insurance companies have been measured using Data Envelopment Analysis (DEA), both CCR and BCC output-oriented model. The results from the analysis indicate an increase of the average efficiency during the almost whole observed period. The scale efficiency follows the same trend. When estimating the BCC model, the number of efficient insurance companies and the average efficiency for the sector is higher than in the CCR case, implying that the main source of inefficiency is due to scale inefficiencies. The average technical efficiency score of Republic of Macedonia in 2013 of 0.84387 indicates relatively high efficiency of the insurance sector. The efficiency problem of each insurance company has been specified particularly
Keywords
Data Envelopment Analysis, Macedonia, Insurance Sector Efficiency, Scale Efficiency, Technical Efficiency, Pure Technical Efficiency
To cite this article
Vesna Micajkova, Efficiency of Macedonian Insurance Companies: A DEA Approach, Journal of Investment and Management. Vol. 4, No. 2, 2015, pp. 61-67. doi: 10.11648/j.jim.20150402.11
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