Economics of scale in services: A study of multinational insurers

This study investigates whether multinational insurers achieve economics of scale. Using a time-series, cross-sectional it analyzes the relationship between expenses and output of multinational insurers. The study finds that multinational insurers achieve economies of scale only up to a point, and rather than benefitting from scale, the most internationally diverse insurers suffer diseconomies. The conclusion is that the benefits of extensive foreign acquisitions by insurers are questionable.