Productive performance of the French insurance industry
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- Fecher, F., Kessler, D., Perelman, S. et al. J Prod Anal (1993) 4: 77. doi:10.1007/BF01073467
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The purpose of this paper is to provide for both life and non-life insurance an assessment of the relative productive performance of French companies. We use parametric and nonparametric approaches to construct a frontier to be used as a yardstick of productive efficiency. Our data basis covers 84 life and 243 non-life companies for the period 1984–1989. The main findings show a high correlation between parametric and nonparametric results and a wide dispersion in the rates of inefficiency across companies. This dispersion can be reduced when controlling for variations in scale, ownership, distribution, reinsurance, and claims ratios.