In summary, the European insurance industry has improved significantly in terms of efficiency in recent years, with the average net expense ratio being 25.18%. The most efficient insurers achieve a net expense ratio almost two and half times lower than the least efficient. The most efficient insurance companies are concentrated in the Nordic countries, with Denmark, Sweden, and Norway leading the way. The least cost-efficient insurance companies are in Austria and The Netherlands. The top performers in the survey have six characteristics in common: customized distribution channels, efficient distribution, performance-based compensation, centralized support functions, IT and internet proficiency, and decentralized organization. These characteristics suggest that insurers seeking to improve efficiency should focus on these areas.
