Rating Iranian insurance companies based on financial variables and ratios utilizing multiple attribute decision making (MADM) techniques

Parchami Sarghein, M.; Raei, R.

doi:10.22056/ijir.2015.02.04

Document Type : Original Research Paper

Authors

M. Parchami Sarghein ¹
R. Raei ²

¹ Department of Business Management, Faculty of Management, University of Tehran, Tehran, Iran

² Department of Financial Management, Faculty of Management, University of Tehran, Tehran, Iran

https://doi.org/10.22056/ijir.2015.02.04

Abstract

Determining the financial status of the insurance companies and reporting it to the supervisor authorities and other stakeholders is an important issue to consider. Due to the structure of the insurance industry in Iran, utilizing the models which determine the financial failure is not possible. Therefore, rating as one of the most common methods of evaluating financial solvency among the insurance companies has been used. The main reason behind the current study is to identify the most important and effective financial variables in determining the financial status of the Iranian insurance companies and to prioritize them and finally, rating the companies based on the mentioned variables and ratios. For this reason, a comprehensive review of the related literature has been resulted in gaining the effective variables and ratios in determining financial status of the insurance companies and their relationship with the financial condition of the insurance companies has been investigated by the insurance industry experts. Then, 19 insurance companies rated for three continuous years based on the mentioned variables and ratios utilizing AHP, SAW, TOPSIS, and VIKOR methods. As a result of this, the "R" and "A" insurance company, have gained first and second status respectively.

Keywords

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Iranian Journal of Insurance Research

Rating Iranian insurance companies based on financial variables and ratios utilizing multiple attribute decision making (MADM) techniques

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Volume 4, Issue 2 - Serial Number 12
April 2015
Pages 233-247

Rating Iranian insurance companies based on financial variables and ratios utilizing multiple attribute decision making (MADM) techniques

Letters to Editor

Send comment about this article

Volume 4, Issue 2 - Serial Number 12April 2015Pages 233-247

Volume 4, Issue 2 - Serial Number 12
April 2015
Pages 233-247