Efficiency of non-life insurance market in US

  1. Sara Suárez Fernández 1
  2. Raquel Quiroga García 1
  3. Eva Suárez Álvarez 1
  4. Isabel Manzano Pérez 1
  1. 1 Universidad de Oviedo
    info

    Universidad de Oviedo

    Oviedo, España

    ROR https://ror.org/006gksa02

Revista:
Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]

ISSN: 1988-8767

Año de publicación: 2015

Número: 769

Páginas: 1-20

Tipo: Documento de Trabajo

Otras publicaciones en: Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]

Resumen

This study analyses the technical efficiency of the insurance market in the United States for the period 2007-2012 using an input-oriented DEA model. In addition, the Malmquist index has been included, which corroborates the results obtained by the DEA and, therefore, it allows more solid conclusions. The results show the existence of a high degree of efficiency in the insurance sector. The main conclusion to be drawn is that small businesses are usually more efficient than the largest ones. This is due to scale inefficiency observed in the largest insurers, which are, in most cases, oversized. Meanwhile, the pure technical efficiency reflects an outstanding management in the U.S. insurance market