Determinants of Croatian Non-Life Insurance Companies? Efficiency

Although a relatively large number of studies have been focused on evaluating the efficiency of insurance companies from different aspects, analysis of factors that determine the achieved level of insurers' efficiency is still in their inception. While these studies primarily encompass insurance companies operating in developed insurance markets, such research based on the sample of Croatian non-life insurers does not exist. Therefore, this paper is focused on the efficiency drivers of the insurance companies that operate in the Croatian non-life insurance market. The research is based on data for 18 insurance companies in the period from 2009 to 2021. Applying Data envelopment analysis (DEA) and Truncated regression, the research results show that age and ownership influence the efficiency of non-life insurance companies in Croatia, while the companies' size, leverage, and product diversification are not confirmed as significant determinants of the efficiency.