Are Croatian Insurance Companies Meeting the Efficiency Frontier?

This paper utilizes Data Envelopment Analysis to assess the relative efficiency of 14 insurance companies in the Republic of Croatia from 2018 to 2022, considering inputs (capital and number of employees) and outputs (net earned
premiums and total investment). Despite an overall sectoral average efficiency of 79.67%, the study reveals a consistent decline in efficiency, interrupted only by a marginal improvement in 2021. Identifying seven relatively efficient and seven inefficient companies, the analysis highlights 2018 as the peak of sector-wide efficiency, contrasting with a decline to its nadir in 2022. The significance of these findings lies in their contribution to both academic understanding and practical implications. The research offers insights by outlining targeted improvement objectives for inefficient insurance companies and guiding management in resource allocation.