A Luenberger Index for the Greek Life Insurance Industry

Carlos Pestana Barrosa, Milton Nektariosb, Nicolas Peypochc
European Research Studies Journal, Volume XII, Issue 4, 3-18, 2009
DOI: 10.35808/ersj/240


This paper uses the Luenberger productivity index to evaluate the productivity changes of Greek Life insurance companies between 1994 and 2003, combining operational and financial variables. It is found that the average annual productivity change was about 19% and was due to technological progress, whereas the impact of efficiency was minimal. It seems that deregulation, established by the Third Insurance Directive in 1994, provoked investments in new technologies which were not matched by superior managerial practices. For comparative purposes, a Malmquist productivity index is estimated.

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