engleski

Effects of privatization on the insurance companies performance in a transitional economy - the case of Croatia

The main objective of teh changing processes in tranitional economies is to enable efficient functioning of the economic system and to achieve competitiveness in the world market. First changes in Croatian economy laid the foundation for free market mechanism and resulted in considerable decrease in overall economic activity. National market is opened to a larbe extent and enterprises are exposed to a permanently growing competition. Since 1999 the insurance market in Croatia is no more dominated by state-owned insurance companies. In terms of eqity capital the Stae accounts for nearly 33% of the total capital of insurance industry. The domestic private owners total share is slightly less than 50%. Relatively small part belongs to foreign owners. The paper will introduce a research on the transformation processes occurring in Croatian insurance industry. Analyzed are the dynamics of economic growth of insurance companies and the relevant changes occurred inside the insurance companies as the result of privatization processes. Research is based on sources of dataof official statistics and National Agency for Payment Transactions (Zavod za platni promet), Zagreb, and on information directly received from insurance companies. The research objective is to compare the degree of performance of privately versus state owned insurance companies.

transition; ownership; privatization; competition; performance; insurance

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