Abstract
In this paper we analyze insurance efficiency in Slovenia and Croatia between 2006 and 2010 using a Data Envelopment Analysis. We perform both intra- and inter- country efficiency surveys. The intra country survey indicates that on average companies in Croatia operate more efficiently than companies in Slovenia. A positive trend of scale efficiency improvement due to mergers and acquisitions which took place in recent years in Croatia is also detected. Nevertheless, the inter-industry analysis indicates that the Slovenian insurance industry dominates Croatian cost and technical efficiency, which shows a low efficiency position of the insurance market in Croatia. Analysis also shows that inefficiency in Croatia is more affected by inefficient internal company operation than in Slovenia.
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