Performance Ranking of Turkish Insurance Companies: The Anp Application

Abstract

Decision making concept can be defined as selection process choosing one of the options, if the outcomes are not certain. In practice it is not sufficient to evaluate the options according to the simplest form of decision making only based on a criterion. In such cases, we must consider all the variety of different information to decide to best option. It arise the requirement of multi-criteria decision making methods.AHP (Analytical Hierarch Process) is a technique that models the relations which are different stage. On the other hand that technique is insufficient to evaluate interdependency relations. The ANP (Analytic Network Process) has the ability to add all the criteria related with the issue. The method of the ANP can be described as follows. The first phase of the ANP is to compare the criteria in whole system to form the supermatrix. This is done through pairwise comparisons by asking experts.The first step of the ANP is to compare the importance between each criterion. The next step is to calculate the influence of the elements (criteria) in each component (matrix) using the eigenvalue method.In this research, financial performans ranking of Turkish Insurance companies, which large-scaled business in non-life branches, are obtained for the period 2006-2010 using financial ratios of companies and applying the ANP model which was developed with the superdecision software.

Analysis of the efficiency of insurance companies in Serbia using the fuzzy AHP and TOPSIS methods

“…Fan and Cheng (2009) used AHP and TOPSIS to evaluate the curriculum in the departments of risk management and insurance. Also, Ilyas and Tunay (2015) and Sehhat, Teheri, and Sadeh (2015) combined AHP and TOPSIS methods for the ranking of insurance companies in Turkey and Iran. Zhengkui and Jian (2012) implemented TOPSIS to establish an evaluation model for the insurance industry to fill the gaps in the social responsibility theory.…”

Evaluation and ranking of insurance companies by combining TOPSIS and the interval fuzzy rough sets

“…The wide literature review indicates that the assessment and ranking of the financial institutions that operate at the level of one country is performed by respecting personal preferences of the investors and the preferences of their clients (Akhisar & Tunay, 2015;Lu & Zhu 2018). It should be emphasized that investor and client preferences differ.…”

“…For example, the investors want to maximize profits while at the same time clients have aversion to risk, the investment horizon, etc. Many authors have suggested that the rating and ranking of the insurance companies should be considered as a multi-criteria analysis task (Akhisar & Tunay, 2015). According to the literature sources, it can be concluded that the Analytic hierarchy process (AHP), The Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), "Visekriterijumska optimizacija i kompromisno resenje" (VICOR) have been mostly employed in the multi-criteria decision analysis methods (MCDA) for the ranking of the insurance companies (Ercan & Orden, 2016).…”

Performance Evaluation of Non-Life Insurance Companies With Best-Worst Method and Topsis

“…Shen et al, (2017) Saeedpoor et al, (2015) measured Iranian insurance companies based on five service quality criteria using first fuzzy analytic hierarchy method (FAHP) to determine the criteria weights and then used TOPSIS to rank the alternatives. In a similar approach, Akhisar & Tunay (2015) used TOPSIS to compare insurance company's performance based on the criteria weights determined by AHP.…”