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The Efficiency of Saudi Arabia Insurance Companies

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  • Lotfi Ben Jedidia
  • Imed Medhioub

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.

Suggested Citation

  • Lotfi Ben Jedidia & Imed Medhioub, 2015. "The Efficiency of Saudi Arabia Insurance Companies," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 5(3), pages 237-248.
    • Handle: RePEc:rss:jnljms:v5i3p6
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    References listed on IDEAS

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    Cited by:

    1. Wise William, 2020. "The Importance of the Efficiency of Mutual Life Insurers: A Comparison to Stock Life Insurers," Folia Oeconomica Stetinensia, Sciendo, vol. 20(1), pages 474-505, June.

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