Determinants of Efficiency and Productivity in German Property-Liability Insurance: Evidence for 1995–2006
This paper provides a comprehensive analysis of efficiency and productivity in the German property-liability insurance industry, a market that has experienced significant change in recent years. Using data envelopment analysis (DEA) and covering the period 1995–2006, we find that there is potential for the market to improve by about 20 percentage points in terms of technical efficiency and about 50 percentage points in terms of cost efficiency. Furthermore, the analysis shows moderate total factor productivity growth and low efficiency growth during the sample period. A major contribution of the paper is its analysis of six efficiency determinants – firm size, distribution channels, ownership forms, product specialisation, financial leverage and premium growth – using a truncated regression and bootstrapping approach to avoid invalid inference. The Geneva Papers (2009) 34, 483–505. doi:10.1057/gpp.2009.10
Year of publication: |
2009
|
---|---|
Authors: | Luhnen, Michael |
Published in: |
The Geneva Papers on Risk and Insurance - Issues and Practice. - Palgrave Macmillan, ISSN 1018-5895. - Vol. 34.2009, 3, p. 483-505
|
Publisher: |
Palgrave Macmillan |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Understanding Price Competition in German Motor Insurance
Eling, Martin, (2008)
-
Eling, Martin, (2008)
-
Understanding price competition in the German motor insurance market
Eling, Martin, (2008)
- More ...