Review and ranking the private insurance companies in Iran based on TOPSIS model

  • Authors

    • Leila Asadi Department of Accounting, Eslamshahr Branch, Islamic Azad University, Eslamshahr, Iran
    • Ali Esmaeilzadeh Moghri Department of Accounting, Eslamshahr Branch, Islamic Azad University, Eslamshahr, Iran
    2016-08-17
    https://doi.org/10.14419/ijaes.v4i2.6327
  • Ranking, Insurance, Financial and Non-Financial Indicators, TOPSIS, Performance Evaluation Indexes.

  • Insurance companies are the most important economic institutions in each country and they support other economic entities. Their proper performance play an important role in the booming the economy. Insurance companies to achieve effective and strong performance should be familiar with performance of competitors and themselves and according to their information take necessary measures. For this purpose, the current study aims to rank the private insurance companies. In this regard, financial and non-financial indicators as well as performance index for 17 private insurance companies are extracted over 4 years (2011 to 2014) based on their financial statements. The weight of each index was determined using the Shannon entropy. Then, insurance companies were ranked using TOPSIS. The results showed that based on financial indicators, Arman insurance company in 2011 and 2012 had the optimal performance from the standpoint of the criteria (1st). In the years, 2013 and 2014 Kosar insurance Company and Mihan insurance companies were at the 1st place. In addition, Alborz insurance Company had a good performance in terms of performance indexes in 2011 and 2013, (1st). In the years 2012 and 2014, Parsian and Pasargad Insurance Companies ranked 1st. Based on non-financial indicators, Asia insurance company in the period under review (2011 to 2014) ranked in the first place.

  • References

    1. [1] Nemati, Muhammad and Kazemi, Aaliyeh (2014), the ranking of insurance companies using Multi Attribute Decision Making, Financial Research, Volume 16, Issue 1.

      [2] Dehkordi, Mehdi, (2014), review and ranking of the factors affecting the financial performance of the insurance industry with (DEA / MADM), Master Thesis, University of Science and Art.

      [3] Mazloumi. Nader, Dadvand. Sara, (2012) identifying and ranking the factors affecting competitive advantage of insurance companies, Insurance Journal, Volume 27, Issue 2.

      [4] Amraei. Parviz, Zarif. Somayeh and Mousavi. Hamid, 2014, evaluating performance and ranking of companies in the cement industry in Tehran Stock Exchange using FAHP and TOPSIS, International Management Conference, Tehran, Institute of Mobin cultural ambassadors (SAFIRAN E FARHANGI E MOBIN)

      [5] Alvani, S. (2010), Public administration. Tehran: Ney Publications.

      [6] Hassanzadeh, H. Zare, P. (2009) explaining the performance evaluation indexes of private insurance companies using the BSC by experts, Quarterly of insurance industry, Insurance institution, No. 23.

      [7] Mirzaee, H and Safari. A, (2009), Introduction to ranking Iranian insurance companies, Insurance World News, No, 136 and 137, p. 16.

      [8] Parizadi, Isa (2009), financial ratios and economic variables of assessing the financial health and stability of insurance companies in Iran, master's thesis, Allameh Tabatabaei University.

      [9] Soleimani, Zahra (2011) comparative analysis of ranking of insurance companies using RBC and CAMEL models, a master's thesis.

      [10] Asgharpour, M., (2014), Multi Criteria Discussion Making (MCDM), Tehran University Press, First Edition, Page 214

      [11] Hosseini. Seyed Hassan, Ezazi. Mohammad Ismail, Donyayi. Mohammad, Tehrani. Reza, (2011) "Comparison of Top ranking companies based on financial ratios with hybrid approach of AHP-TOPSIS and indicators of Tehran Stock Exchange" Journal of Financial Engineering and Management in Tehran, No. VIII, autumn.

      [12] Anvari Rostami. Ali Asghar and Khotanlou. Mohsen, (2006), the scale of ranking the top companies based on profitability ratios and indicators of Tehran Stock Exchange, accounting and audit investigations, No. 43, PP. 25-43.

      [13] Saeed Sehhat , Mahsa Taheri, Davoud Hosseinabadi Sadeh. Ranking of insurance companies in Iran using AHP and TOPSIS techniques. American Journal of Research Communication, 2015, 3(1): 51-60}

      [14] Akhisar, Ilyas and Tunay, Necla (2015), Performance Ranking of Turkish Life Insurance Companies Using AHP and TOPSIS, management international conference, Slovenia.

      [15] Dewey Wollmanna, Maria Teresinha Arns Steiner, Guilherme Ernani Vieira, Patrícia Arns Steiner, (2014), Details of the analytic hierarchy process echnique for the evaluation of health insurance companies, Production, v. 24, n. 3, p. 583-593, July/Sept. 2014

      [16] Bolajoko Nkemdinim Dixon-Ogbechi, Sikuade Oladimeji Jagun, Salome Ogheneochuko Ighomereho, Ganiyu Ajao Rahim, Elizabeth Marie Haran, (2014), DETERMINATION OF PROMOTIONAL STRATEGY FOR ORGANIZATIONS IN THE NIGERIAN INSURANCE INDUSTRY USING THE AHP MODEL, http://dx.doi.org/10.13033/ijahp.v7i1.261.

      [17] Khodaei, Mohammad, Valahzaghard, and Ferdousnejhad, Mahnaz, (2013), ranking insurance firms using AHP and Factor Analysis, Management Science Letters 3 (2013) 937–942.on Internet. Patient Education and Counseling 53, 309–313. http://dx.doi.org/10.5267/j.msl.2013.01.027.

  • Downloads

  • How to Cite

    Asadi, L., & Esmaeilzadeh Moghri, A. (2016). Review and ranking the private insurance companies in Iran based on TOPSIS model. International Journal of Accounting and Economics Studies, 4(2), 120-125. https://doi.org/10.14419/ijaes.v4i2.6327