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

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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.

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Authors and Affiliations

  1. University Department of Professional Studies, University of Split, Kopilica 5, 21000, Split, Croatia

    Tomislava Pavić Kramarić

  2. Faculty of Economics and Business, University of Zagreb, Trg J. F. Kennedyja 6, 10000, Zagreb, Croatia

    Mirjana Pejić Bach, Ksenija Dumičić, Berislav Žmuk & Maja Mihelja Žaja

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  1. Tomislava Pavić Kramarić
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  2. Mirjana Pejić Bach
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  3. Ksenija Dumičić
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  4. Berislav Žmuk
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  5. Maja Mihelja Žaja
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Correspondence to Berislav Žmuk.

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Kramarić, T.P., Bach, M.P., Dumičić, K. et al. Exploratory study of insurance companies in selected post-transition countries: non-hierarchical cluster analysis. Cent Eur J Oper Res 26, 783–807 (2018). https://doi.org/10.1007/s10100-017-0514-7

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