Explaining an Integrated Strategic Performance Evaluation Pattern for Insurance Industry

Document Type : Research

Authors

1 Shahid Beheshti University

2 Allameh Tabataba’ee University

Abstract

Numerous internal and external challenges caused by technology innovation and customer needs’ changes have made the performance evaluation inevitable. Tendency to quantitative results of performance evaluation and increasing the accuracy of decision making made the data envelopment analysis a famous method for benchmarking a set of homogenous decision making units. But in the case that the number of DMUS’ are not compatible to the number of inputs and outputs , the model’s results may not reveal the appropriate scores of efficient and inefficient DMUs and may lead us to misdirection. In order to increase the accuracy and discretionary of standard DEA, we've used an integrated data envelopment analysis and goal programming to find a common set of weights. We have chosen the insurance industry as our case study and for choosing the relative indicators we've used Delphi Technique. Asking indicators' importance from insurance experts helped us to set the weights in the goal programming model. Using proposed model, we can clearly find an optimal set of weights for evaluating each DMU and calculate efficiency scores to rank all the insurance companies. The empirical example showed that the new proposed DEA model can successfully acquire a full ranking for the DMUs. Running the model resulted a better discretionary of 0.74 in comparison to classic Dea and introduced the first insurer as efficient.

Keywords

References

 
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Journal of Strategic Management Studies
Volume 7, Issue 25
June 2016
Pages 151-171

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History

  • Receive Date: 09 August 2015
  • Revise Date: 11 June 2019
  • Accept Date: 20 October 2015

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