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Exploratory study of insurance companies in selected post-transition countries: non-hierarchical cluster analysis

Author

Listed:
  • Tomislava Pavić Kramarić

    (University of Split)

  • Mirjana Pejić Bach

    (University of Zagreb)

  • Ksenija Dumičić

    (University of Zagreb)

  • Berislav Žmuk

    (University of Zagreb)

  • Maja Mihelja Žaja

    (University of Zagreb)

Abstract

This paper focuses on the analysis of business practice of insurance companies in selected post-transition European countries. Specifically, it covers Croatian, Slovenian, Hungarian and Polish insurance markets in the year 2014 comprising the total of 119 insurance companies. Employing the non-hierarchical cluster analysis by applying the k-means approach, insurance companies are segmented into seven groups using various variables such as ROE, the share of premium ceded to reinsurance, the number of years operating in the insurance market, leverage, gross premium written and the share of life insurance premium in the total premium. Furthermore, these seven clusters have been grouped according to the country of origin, ownership and the type of insurance companies. Results indicate that specific groups of insurance companies in these countries share common characteristics, which are not based solely on the country of origin and the type of insurance.

Suggested Citation

  • Tomislava Pavić Kramarić & Mirjana Pejić Bach & Ksenija Dumičić & Berislav Žmuk & Maja Mihelja Žaja, 2018. "Exploratory study of insurance companies in selected post-transition countries: non-hierarchical cluster analysis," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(3), pages 783-807, September.
    • Handle: RePEc:spr:cejnor:v:26:y:2018:i:3:d:10.1007_s10100-017-0514-7
    DOI: 10.1007/s10100-017-0514-7
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    Cited by:

    1. Marijana Zekić-Sušac & Rudolf Scitovski & Goran Lešaja, 2018. "CEJOR special issue of Croatian Operational Research Society," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(3), pages 531-534, September.
    2. Miletic, Marko & Pavic Kramaric, Tomislava & Plazibat, Boze, 2019. "What Determines Financial Soundness Of Croatian Listed Firms?," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 10(2), pages 189-200.
    3. Mira Krpan & Ana Pavkovic & Berislav Zmuk, 2020. "Cluster analysis of new EU member states' pension systems," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 18(2B), pages 208-222.

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