Efficiency, Economies of Scale and Scope of German Insurance Companies

Ifo Studien, Vol. 45, Issue 3, pp. 335-369, 1999

Posted: 6 Feb 2012 Last revised: 15 Feb 2012

See all articles by Bernhard Mahlberg

Bernhard Mahlberg

Institute for Industrial Research (IWI); Vienna University of Economics and Business - Institute for Production Management

Abstract

The purpose of this study is to measure technical efficiency and economies of scale and scope in the German insurance industry. These are important aspects of the competitiveness of the German insurance companies in the light of the liberalization and opening of the insurance markets in the European Union. With the aid of the Data Envelopment Analysis an efficiency frontier has been constructed which is used as a yardstick of productive efficiency. The sources of data are the annual statement of accounts of years 1992 to 1996. As a result, inefficiencies and economies of scale have been found. The average cost curve appears to be L-shaped

Keywords: European integration, deregulation, competitiveness

JEL Classification: G22, D24

Suggested Citation

Mahlberg, Bernhard, Efficiency, Economies of Scale and Scope of German Insurance Companies. Ifo Studien, Vol. 45, Issue 3, pp. 335-369, 1999. Available at SSRN: https://ssrn.com/abstract=1999357

Bernhard Mahlberg (Contact Author)

Institute for Industrial Research (IWI) ( email )

Mittersteig 10/4
Vienna, 1050
Austria
+43 1 513 44 11 0 (Phone)
+43 1 513 44 11 2099 (Fax)

HOME PAGE: http://www.iwi.ac.at/

Vienna University of Economics and Business - Institute for Production Management ( email )

Welthandelsplatz 1
Building D2, Entrance C, 3rd floor
Vienna, 1020
Austria
+43 1 313 36 - 5615 (Phone)

HOME PAGE: http://https://www.wu.ac.at/en/prodmanengl/

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