The Efficiency of Saudi Arabia Insurance Companies

Lotfi Ben Jedidia and Imed Medhioub

International Journal of Management Sciences, 2015, vol. 5, issue 3, 237-248

Abstract: This paper explores the efficiency of 21 Saudi insurance companies listed from 33 companies over the period 2009-2012. In effect, the concept of efficiency concerns an insurer’s ability to produce a given set of outputs via the use of inputs. Employing the stochastic frontier approach, the results show that the overall mean inefficiency lies between 0.0082 to 0.2021 and therefore none of the insurance companies in Saudi Arabia is fully efficient. Another important result suggests the negative relationship between size and efficiency, i.e. performance of smaller insurance company is better than larger company.

Keywords: Stochastic frontier; Translog function; insurance industry; cost efficiency. (search for similar items in EconPapers)
Date: 2015
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