The relationship between the digital maturity and efficiency of Croatian non-life insurers: Exploratory research

Ćurak Marijana (), Duvnjak Mirela () and Pervan Maja ()
Additional contact information
Ćurak Marijana: Department of Finance Faculty of Economics, Business and Tourism University of Split, Split, Croatia
Duvnjak Mirela: Croatia Insurance Company Plc. Zagreb, Croatia
Pervan Maja: Department of Economics Faculty of Economics, Business and Tourism University of Split, Split, Croatia

Journal of Economics and Management, 2024, vol. 46, issue 1, 55-78

Abstract: Aim/purpose – In line with the general trend of digitalization and changing customers’ needs and preferences, insurance companies have increasingly applied digital technology to their business. This digital transformation should enhance insurance companies’ efficiency and provide further advantages. Therefore, this study’s main aim is to analyze the current relationship between the digital maturity of Croatian non-life insurers and their efficiency. Design/methodology/approach – The empirical analysis is based on the data collected via an online survey on a sample of Croatian non-life insurers and from the insurance companies’ financial statements. The data was analyzed using the Digital Maturity Model 5.0 by Forrester Research, Inc., Data Envelopment Analysis, and correlation analysis. Findings – The surveyed Croatian non-life insurance companies have achieved the second level of a four-level digital maturity scale, on average. Although the digital transformation of insurance companies is a promising efficiency driver, the current level of digital maturity of Croatian non-life insurance companies is not positively related to their efficiency. Research implications/limitations – The research has implications for insurance companies regarding their path of digital transformation, as well as for the regulators establishing an adequate regulatory framework to encourage the digital development of insurance companies. The objective limits of the research refer to the means of measuring digital maturity and the sample size. The research is limited to the Croatian insurance market. Originality/value/contribution – Analysis of the efficiency of insurance companies from the information technology perspective is rare in the academic literature, and this issue has not been investigated using a sample of Croatian insurers. The research contributes to advancing knowledge on the relationship between digital maturity and insurance companies’ efficiency.1

Keywords: digital transformation and maturity; efficiency; Croatian non-life insurance companies (search for similar items in EconPapers)
JEL-codes: C67 D22 G22 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.22367/jem.2024.46.03 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:jecman:v:46:y:2024:i:1:p:55-78:n:3

DOI: 10.22367/jem.2024.46.03

Access Statistics for this article

Journal of Economics and Management is currently edited by Ewa Ziemba

More articles in Journal of Economics and Management from Sciendo
Bibliographic data for series maintained by Peter Golla ().