Measuring the efficiency of Serbian insurance companies

The transition period, and the still ongoing economic crisis, amplify the volatility in the domestic insurance market and forces the management of insurance companies to continuously monitor changes in the market, i.e. to identify risks and opportunities, and therefore to undertake certain activities. The focus of the business of insurance companies is based on satisfying the needs of existing and potential clients. Respecting the current situation in the insurance market in anticipation of future events, the management of insurance companies must create and implement the optimal strategy in line with the company’s capabilities. For this purpose it is necessary to measure the efficiency of the business, which is the subject of this paper where the Data Envelopment Analysis (DEA) method is applied to the case of insurance companies operating in Serbia

Measuring the Productivity of Serbian Banks Using Malmquist Index

This paper evaluates the scale of productivity change of the Bank of Serbia over the period 2007- 2010. In this research the emphasis is put on measuring the productivity based on information from the financial statements using Data Envelopment Analysis (DEA) method and Malmquist index to estimate the individual bank efficiency and productivity changes within this period. The Malmquist productivity indices have been decomposed into technical changes of efficiency index and index of technology changes. DEA is an increasingly popular management tool. It is widely known what represents an input and what is output in banking operations, but for an adequate analysis of the efficiency or the productivity of banks it is essential to choose the right combination of inputs and outputs of the bank. In relevant academic literature various combinations of inputsand outputs could be seen for measuring the efficiency and productivity of banks. This paper shows the productivity decrease of the banking sector