Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/169166
Authors: 
Nektarios, Milton
Xenos, Panos
Nektarios, George
Poulakis, Kostas
Chouzouris, Michalis
Year of Publication: 
2015
Citation: 
[Journal:] SPOUDAI - Journal of Economics and Business [ISSN:] 2241-424X [Volume:] 65 [Year:] 2015 [Issue:] 1/2 [Pages:] 27-46
Abstract: 
This paper evaluates the efficiency of the twenty-one largest Syndicates of Lloyd's of London. Members of Lloyd's of London are grouped into Syndicates in order to undertake insurance liabilities. In this study, the Syndicate is regarded as the counterpart of an insurance company in a regular insurance market. The analysis covers a period of eight years between 2004 and 2011. Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) are used to estimate the efficiency of the Syndicates, and comparisons are made for the consistency of the two methods. The main findings indicate, firstly, that the average annual efficiency estimates for all Syndicates are plausible and they follow three-year cycles. Secondly, the less efficient syndicates may reduce inputs by almost one-third and still produce the same output, provided that they adopt the "best practices" of the most efficient Syndicates.
Subjects: 
Insurance
Lloyd’s
efficiency
DEA
SFA
JEL: 
G22
D24
D22
Document Type: 
Article

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