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The Extraction of Influencing Indicators for Scoring of Insurance Companies Branches Based on GMDH Neural Network

Author

Listed:
  • Hamid Reza Mohammadi Ojan

    (Department of Insurance Management Electronic-Branch, Islamic Azad University, Tehran, Iran.)

  • Mohammad Karimi

    (Department of Management Electronic-Branch, Islamic Azad University, Tehran, Iran.)

  • Ebrahim Kardgar

    (Department of Management Electronic-Branch, Islamic Azad University, Tehran, Iran)

  • Mehdi Ahrari

    (Department of Economics, Allameh Tabataba'i University, Tehran, Iran.)

Abstract

One of the key topics and the most important tools to determine the strengths, weaknesses, opportunities and threats of each organization and company is the evaluation the performance of organizational activities that rating and ranking follows the internal and external goals. In this regard insurance companies similarly are looking for evaluation of their branches through scoring, ranking and identifying the top branches. Using scoring and then ranking branches based on performance evaluation, not only helps to identify internal and external situation and provides the possibility of planning, implementation, monitoring, control, and to improve performance, but also it will be impossible comparison of branches .Since now scoring of insurance companies branches in Iran were done under a traditional framework, that apply an on-theoretical approach and based on experimental expertise ,in this study by using GMDH neural network, f furthermore, in the process of change from a traditional framework to the systematic mechanism, we extract indicators of evaluation of the performance of the Dana Insurance company and also objective function and effective variables were determined. Moreover, results show that GMDH neural network is an appropriate alternative for traditional framework and based on this new approach, we found the ability of forecasting budget and profit.

Suggested Citation

  • Hamid Reza Mohammadi Ojan & Mohammad Karimi & Ebrahim Kardgar & Mehdi Ahrari, 2018. "The Extraction of Influencing Indicators for Scoring of Insurance Companies Branches Based on GMDH Neural Network," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 22(2), pages 527-556, Spring.
  • Handle: RePEc:eut:journl:v:22:y:2018:i:2:p:527
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    References listed on IDEAS

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    1. Campbell R. Harvey & Yan Liu, 2016. "Rethinking Performance Evaluation," NBER Working Papers 22134, National Bureau of Economic Research, Inc.
    2. José Francisco Martínez Sánchez & Gilberto Pérez Lechuga, 2016. "Assessment of a credit scoring system for popular bank savings and credit," Contaduría y Administración, Accounting and Management, vol. 61(2), pages 391-417, Abril-Jun.
    3. Xie, Xiaoying, 2010. "Are publicly held firms less efficient? Evidence from the US property-liability insurance industry," Journal of Banking & Finance, Elsevier, vol. 34(7), pages 1549-1563, July.
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