Efektywność techniczna zakładów ubezpieczeń w dziale ubezpieczeń non-life
Technical efficiency of non-life insurance companies

Summary/Abstract: The insurance market is an important part of a financial system, and insurance business is an important element in risk management and revenue volatility management.The purpose of this study was to examine the cost efficiency and profit efficiency of insurers and their mutual correlation with the application of stochastic frontier analysis (SFA). The study used descriptive statistics methods and the SFA model.SFA models belong to parametric stochastic frontier models for estimating inefficiency. Efficiencies of the studied insurers were estimated on the basis of the determined inefficiency values. The analysis is based on the annual financial data (2011–2019) of 18 Polish non-life insurance companies (joint stock companies).The study showed that the average cost efficiency was 0.6958 and the average profit efficiency was 0.8382. In the period considered, there was a relatively higher variability in the cost efficiency than in the profit efficiency and a low correlation between the values of these efficiencies. The struc- ture and development of the non-life insurance sector in Poland was also assessed, taking into account selected EU countries.

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