Prioritizing Risk-level Factors in Comprehensive Automobile Insurance Management: A Hybrid Multi-criteria Decision-making Model

An efficient risk-level prediction for newly proposed insurance policies plays a significant role in the survival of companies in the highly competitive insurance market. In Iran, risk assessment in comprehensive automobile insurance, which is a part of motor insurance, is only based on the vehicle attributes without proper consideration of personal and behavioural characteristics of driver(s). As a result, pricing is unfair in most of the cases and this can put insurance companies in an unfavourable financial position due to attracting high-risk drivers instead of low-risk ones. In this scenario, to identify and prioritize important factors affecting risk levels and to move towards a fair ratemaking, a two-phase process based on fuzzy Delphi method (FDM) and fuzzy analytic hierarchy process (FAHP) is proposed in this research. Additionally, similarity aggregation method (SAM) is applied to combine the individual fuzzy opinions of the surveyed experts into a group fuzzy consensus opinion. The results of this empirical study contribute to the insurance market of Iran by proposing appropriate weighting of the relevant risk factors to support stakeholders and policymakers for assessing risks more accurately, as well as designing more effective databases and insurance proposal forms.

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Flood Risk Assessment of Metro System Using Improved Trapezoidal Fuzzy AHP: A Case Study of Guangzhou

Remote Sensing ◽

10.3390/rs13245154 ◽

2021 ◽

Vol 13 (24) ◽

pp. 5154

Author(s):

Guangpeng Wang ◽

Lianyou Liu ◽

Peijun Shi ◽

Guoming Zhang ◽

Jifu Liu

Keyword(s):

High Risk ◽

Flood Risk ◽

Urban Areas ◽

Fuzzy Ahp ◽

Scientific Data ◽

Risk Level ◽

Analytic Hierarchy ◽

Risk Levels ◽

Metro Systems ◽

Very High

Metro systems have become high-risk entities due to the increased frequency and severity of urban flooding. Therefore, understanding the flood risk of metro systems is a prerequisite for mega-cities’ flood protection and risk management. This study proposes a method for accurately assessing the flood risk of metro systems based on an improved trapezoidal fuzzy analytic hierarchy process (AHP). We applied this method to assess the flood risk of 14 lines and 268 stations of the Guangzhou Metro. The risk results validation showed that the accuracy of the improved trapezoidal fuzzy AHP (90% match) outperformed the traditional trapezoidal AHP (70% match). The distribution of different flood risk levels in Guangzhou metro lines exhibited a polarization signature. About 69% (155 km2) of very high and high risk zones were concentrated in central urban areas (Yuexiu, Liwan, Tianhe, and Haizhu); the three metro lines with the highest overall risk level were lines 3, 6, and 5; and the metro stations at very high risk were mainly located on metro lines 6, 3, 5, 1, and 2. Based on fieldwork, we suggest raising exits, installing watertight doors, and using early warning strategies to resist metro floods. This study can provide scientific data for decision-makers to reasonably allocate flood prevention resources, which is significant in reducing flood losses and promoting Guangzhou’s sustainable development.

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Risk factors and risk level assessment: Forty thousand emergencies over the past decade in China

Jàmbá Journal of Disaster Risk Studies ◽

10.4102/jamba.v12i1.916 ◽

2020 ◽

Vol 12 (1) ◽

Author(s):

Ning Ma ◽

Yijun Liu

Keyword(s):

Risk Factors ◽

Expert Knowledge ◽

Process Analysis ◽

Borda Count ◽

Risk Level ◽

Risk Matrix ◽

Analytic Hierarchy ◽

Risk Levels ◽

The Past ◽

Public Crisis

During a public emergency, which possibly evolves into a major public crisis, it is critical to quickly identify the main risk factors and assess the levels of risk, in order to efficiently manage the risks. In this study, about 40 000 emergencies in China over the past decade are investigated. Then, the five different types of risk factors are identified of these emergencies using the 5W1H methodology, including risk time (When), risk location (Where), risk population (Who), risk psychology (Why) and risk element (What), which lead to a risk matrix that is suitable for China’s national conditions. Based on this risk matrix, combined with expert knowledge, the Borda count and the analytic hierarchy process analysis, risk levels can be precisely assessed, solving ‘how to provide a solution’ (How), which provides decision-making guidance and facilitates prompt risk responses.

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Development of the Insurance Market in Ukraine in the Context of Transformation Changes

Modern Economics ◽

10.31521/modecon.v26(2021)-28 ◽

2021 ◽

Vol 26 (1) ◽

pp. 185-189

Author(s):

Nataliia Shyshpanova ◽

◽

Olena Bodnar ◽

Keyword(s):

Information Technologies ◽

New Technologies ◽

Digital Technologies ◽

Developed Countries ◽

Insurance Market ◽

Insurance Companies ◽

Change Models ◽

Innovative Technologies ◽

The Developed Countries ◽

The Individual

Abstract. The article substantiates the feasibility of ensuring the development of the insurance market in Ukraine in the context of digital transformations. It has been determined that the latest digital technologies are penetrating deeper into the global insurance market, without bypassing any area of activity, but the volume of the insurance market in Ukraine is several times less than in the developed countries of the world. The indicated factors which restrain the development of the insurance market in Ukraine and characterized existing problems of the insurance market lead to low confidence in the companies of the sector and do not allow it to develop properly. It has been established that in modern conditions of digital transformations, insurance companies widely use innovative technologies that ensure the achievement of both short-term effects and long-term competitive advantages. The directions of digitalization of the insurance market in Ukraine have been characterized and it has been substantiated that the processes of digital transformation based on the development of information technologies of insurance companies contribute to increasing competitiveness. In order to improve the situation in the domestic insurance market and maintain competitive positions, insurance companies should actively use European and world experience, introduce and change models of insurance functioning, and intensively introduce innovative technologies in insurance activities. The use of new technologies and management models in practice will increase the efficiency of the provision of insurance services, require insurance companies to develop new insurance products, taking into account the individual wishes of customers, and will also contribute to expanding the scope of using insurance as a method of risk transfer in an integrated risk management system, as well as will ensure the creation of a unique competitive advantage for those insurance companies that are able to introduce innovative digital technologies in accordance with the individualized requests of customers

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Automobile insurance in Brazil: market concentration and demand

Revista Contabilidade & Finanças ◽

10.1590/1808-057x201808300 ◽

2019 ◽

Vol 30 (81) ◽

pp. 396-408 ◽

Cited By ~ 1

Author(s):

Vivileine Maria Peres ◽

Wilfredo L. Maldonado ◽

Osvaldo Candido

Keyword(s):

Negative Impact ◽

Insurance Industry ◽

Insurance Market ◽

Insurance Companies ◽

Automobile Insurance ◽

Insurance Sector ◽

Demand For Insurance ◽

Structural Framework ◽

Long Run ◽

Short Run

ABSTRACT This paper studies two aspects of the automobile insurance market in Brazil: first, it determines the degree of competition among insurance companies, and second, it estimates and analyzes the demand for automobile insurance. Most of the studies on the automobile insurance market in Brazil analyze the performance of the firms in this sector or present regional studies of the demand for insurance and its determinants. Thus, this study innovates both in showing the competition among the firms and estimating the demand for insurance in the country. The relevance of this research lies in the sequential and ordered way it analyzes the demand in a sector. Firstly, it identifies the type of competition that takes place in the sector and then, based on this, it proposes a structural framework based on optimizing decisions for estimating the price, income, and market power elasticities of demand. Furthermore, analyzing the insurance industry is of the utmost importance since it moves significant amounts of financial resources and provides an essential service in the economy. With information about the market structure and demand profile in the automobile insurance sector it is possible to propose strategic policies for individual firms as well as for the whole sector in order to introduce more efficiency. To analyze the degree of competitiveness, several concentration indices were calculated using annually-aggregated monthly data on the premium paid to all the automobile insurance firms in the period from 2001 to 2016. To estimate the demand for automobile insurance, half-yearly data from 2002 to 2010 for each one of the 27 federative units of Brazil were used. Two main findings are presented in this study. First, we find evidence of little concentration in the Brazilian automobile insurance market, with shares being well distributed among the players. Second, we estimate the demand for automobile insurance in Brazil and find a price-elasticity of -0.47 in the short run and -1.33 in the long run, while the lagged profitability has a negative impact on the amount insured: -0.21 in the short run and -0.59 in the long run. Income does not significantly influence the demand for insurance in Brazil.

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Determination and Verification of the Key Assessment Indicators for the Insurance Market by Applying the Decomposition Multi-attribute Methods and Regression Analysis

Financial Assets and Investing ◽

10.5817/fai2019-1-1 ◽

2019 ◽

Vol 10 (1) ◽

pp. 5-24

Author(s):

Martina Borovcová ◽

Adéla Špačková

Keyword(s):

Regression Analysis ◽

Analytic Network Process ◽

Insurance Market ◽

Insurance Companies ◽

Analytic Hierarchy ◽

Insurance Contracts ◽

Insurance Benefit ◽

Comparison Approach ◽

Network Process ◽

Quantitative Indicators

The aim of the article is to determine and verify the key assessment indicators for the insurance market by applying the decomposition multi-attribute methods and regression analysis. The assessed specific indicators are qualitative indicators (insurance penetration, claim ratio) and quantitative indicators (gross premium, insurance benefit, number of insurance contracts, number of settled insurance claims, number of employees, number of commercial insurance companies, concentration of the insurance market, and more). The decomposition multi-criteria AHP method (analytic hierarchy process) and ANP method (analytic network process) based on the Saaty pair comparison approach are described, including the computation procedure. The described methods are then applied to determine the preferences of the indicators for the insurance market. Subsequently, a particular regression model is created. Our findings reveal the resulting preferences of individual indicators of the insurance market evaluation and key assessment indicators.

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Quantitative Evaluation and Case Study of Risk Degree for Underground Goafs with Multiple Indexes considering Uncertain Factors in Mines

Geofluids ◽

10.1155/2017/3271246 ◽

2017 ◽

Vol 2017 ◽

pp. 1-15 ◽

Cited By ~ 11

Author(s):

Longjun Dong ◽

Weiwei Shu ◽

Xibing Li ◽

Zilong Zhou ◽

Fengqiang Gong ◽

...

Keyword(s):

Evaluation Index System ◽

Risk Level ◽

Accident Risk ◽

Analytic Hierarchy ◽

Risk Levels ◽

Index Measurement ◽

Uncertainty Measurement ◽

Practical Engineering ◽

Dabaoshan Mine ◽

Recognition Criterion

The accidents caused by underground goafs are frequent and destructive due to irregular geometric shapes and complex spatial distributions, which caused severe damage to the environment and public health. Based on the theories of uncertainty measurement evaluation (WME) and analytic hierarchy process (AHP), the comprehensive risk evaluation of underground goafs was carried out using multiple indexes. Considering the hydrogeological conditions, mining status, and engineering parameters of underground goafs, the evaluation index system was established to evaluate the risk degrees considering quantified uncertain factors. The single index measurement values were solved by the semiridge measurement function. The weights for evaluation vectors were calculated through the entropy theory and AHP. Finally, the risk level was evaluated according to the credible degree recognition criterion (CDRC) and the maximum membership principle. The risk levels of 37 underground goafs in Dabaoshan mine were evaluated using 4 coupled methods. The order for underground goafs risk degrees was ranked and classified on account of the uncertainty important degree. According to the ranked order, the reasonability of 4 coupled methods was evaluated quantitatively. Results show that the UME-CDRC can be applied in the practical engineering, which provides an efficient guidance to both reduce the accident risk and improve the mining environment.

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Regulating Big Data effects in the European insurance market

Insurance Markets and Companies ◽

10.21511/ins.08(1).2017.01 ◽

2017 ◽

Vol 8 (1) ◽

pp. 6-15 ◽

Cited By ~ 5

Author(s):

Donatella Porrini

Keyword(s):

Big Data ◽

New Technologies ◽

Distribution Channels ◽

Insurance Market ◽

Insurance Companies ◽

Individual Privacy ◽

Regulatory Measures ◽

European Insurance ◽

The Individual ◽

Different Sources

The article analyzes the regulatory framework in the insurance market in connection with the advent of Big Data, such as information collected from different sources that can be manipulated by new technologies. The use of Big Data offers significant opportunities to the insurance companies in terms of digitization of the distribution channels and greater knowledge of the customers, which is instrumental to a more effective identification of the individual’s risk profile, as well as improvement of the competitiveness. However, regulatory measures are needed for a proper use of Big Data in terms of respect of the individual privacy, potential discrimination and constraint on competition.

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INNOVATIVE POTENCIAL IN INSURANCE – THE INDIVIDUAL AND INSTITUTIONAL CUSTOMERS EVALUATION

Zeszyty Naukowe Wyższej Szkoły Humanitas Zarządzanie ◽

10.5604/01.3001.0012.0523 ◽

2018 ◽

Vol 19 (1) ◽

pp. 139-150

Author(s):

Dorota Olszewska ◽

Jadwiga Synowiec

Keyword(s):

New Technologies ◽

Free Market ◽

Distribution Channel ◽

Corporate Image ◽

Insurance Market ◽

Insurance Companies ◽

Business Success ◽

Business Partners ◽

Starting Point ◽

The Individual

Dynamically changing insurance market and the growing expectations of customers and business partners, intensified competition cause the need of constant introduction or improvement of modern solutions. It is highly connected to innovations. It should be stressed that the transformation of Polish economy and the process of emerging of more and more new private companies caused, on the one hand the reduction of government role in economy and on the other hand it forced companies to obey free market rules, which characterizes the adjusting to environment and the growing share in the market. For the positive creation of corporate image the open attitude of managers and directors becomes extremely important. They are aware of the importance of innovation in company life. This novelty is being spotted by the surroundings of the company, and specifically by its business partners. The positive assessment of innovation is often the starting point of making new business relations. The negative assessment can make them difficult. A good company image is nowadays one of the most basic company aims, and the condition of business success. The creation of good company image by emphasizing the high level of innovation among potential customers (insurance agents, brokers) became one of the basic tasks for insurance companies, because the growth of the company depends on customers. Insurers being aware of the importance of innovation are forced to create such systems, which allows the introduction of new technologies in the process of selling new policies in every distribution channel. The aim of this article is to present the essence of the innovation on the insurance market and to show its significance in the customers appreciation. This article consists of two parts. The first part is theoretical and presents the characteristic of insurance market innovation and its significance in the development of branch. The second part of this publication contains empirical material such as data taken from survey studies conducted in 2016, in the field of innovation evaluation seen from main insurance participants perspective (individual and institutional customers). The research was conducted in Wielkopolska area on the sample of 180 individual and 151 institutional customers (MSP).

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