Economies of Scale in Services: A study of Multinational Insurers

Frances A Katrishen and Nicos A Scordis
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Frances A Katrishen: Temple University
Nicos A Scordis: The College of Insurance

Journal of International Business Studies, 1998, vol. 29, issue 2, 305-323

Abstract: This study investigates whether multinational insurer achieve economies of scale. Using a time-series, cross-sectional design, it analyzes the relationship between expenses and output of multinational insurers. The study finds that multinational insurers achieve economies of scale only up to a point, and rather than benefitting from scale, the most internationally diverse insurers suffer diseconomies. The conclusion is that the benefits of extensive foreign acquisitions by insurers are questionable.© 1998 JIBS. Journal of International Business Studies (1998) 29, 305–323

Date: 1998
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