Prioritization of Different Solvency Monitoring Systems of Iran Insurance Company Using Combined Approach of Analytic Network Process and DEMATEL

• Main Authors: Hamzeh Amin-Tahmasbi, Seyedeh Samaneh Shariatmadari
• Format: Article
• Language: English
• Published: Ayandegan Institute of Higher Education, Iran 2018-03-01
• Series: Journal of Applied Research on Industrial Engineering
• Subjects: different solvency monitoring systems; iran insurance company; analytic network process (anp); dematel
• Online Access: http://www.journal-aprie.com/article_65389.html

The Bankruptcy of insurance companies compared to companies in other industries can have a more devastating impact on the customers of this industry and on society as a whole; because the insurance company's bankruptcy is equal to the risk of the economic presence of the insurer and third parties. Severe outcomes of insurance company's bankruptcy have made financial monitoring institutions to design systems for evaluation and supervision of insurance companies’ solvency in order to reduce bankruptcy risk of these companies. Inappropriate design of these systems may transmit incorrect signals to the insurance companies, lawmakers, and insurers and would have irreversible effects. Thus, the current research aims at prioritizing different solvency monitoring systems of Iran Insurance Company using Analytic Network Process (ANP). This is an applied research in terms of purpose, and it is descriptive - analytical research in terms of data collection method. The identified indexes for evaluation and monitoring the insurance companies’ solvency include the quantitative computational aspects, flexibility, and qualitative aspects. Following data collection using the network analysis software, which was used for advanced hierarchy analysis and DEMATEL, which was used for ranking qualitative, quantitative aspects, and flexibility, it is concluded that the quantitative computational index has the highest impact, and the qualitative index has the lowest impact on the solvency of Iran Insurance Company.