Efficiency Progress and Productivity Change in Germany Insurance Industry

The purpose of this study is to measure changes in efficiency and productivity over time in the German insurance industry. These are important impacts of the liberalization and opening of the German insurance market. With the aid of the Data Envelopment Analysis an efficiency frontier has been constructed which is used as a yardstick of productive efficiency. The efficiency and productivity change is measured by the Malmquist Productivity Index. As a result, the productivity has risen (around 12 percent) during the examined period. There has been a slight decline in efficiency and a moderate technical progress