ASSESSMENT OF THE BUSINESS EFFICIENCY OF INSURANCE COMPANIESMilena Lukić |
Published 10/31/2018 |
ABSTRACT
Business efficiency is determined by business efficiency indicators. Business efficiency indicators from the group of profitability, cost-effectiveness, productivity etc. are used in assessing the efficiency of the company's business. The advantage of using indicators relative to the absolute size of the financial reports is their independence from the size of the company. Given that in the process of evaluating business efficiency, the companies are evaluated on the basis of a group of indicators, it can be said that the performance evaluation of a business represents a multidimensional process. Therefore, a possibility of implementation of multi-criteria methods for the assessment of the business efficiency of insurance companies has been envisaged in this work. The TOPSIS method has been employed in the example of insurance companies, but it could also be done in any other economic branch. The obtained results show that the use of partial efficiency indicators and multi-criteria methods can be used for assessment of the business efficiency and ranking the insurance companies according to the overall efficiency of the business.
Keywords: multiple-criteria methods, TOPSIS method, efficiency indicators, classification, sorting, insurance company.