IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v61y2010i4d10.1057_jors.2009.26.html
   My bibliography  Save this article

Development of utility function for life insurance buyers in the Indian market

Author

Listed:
  • G Dutta

    (Indian Institute of Management)

  • S Basu

    (Indian Institute of Management)

  • J John

    (Indian Institute of Management)

Abstract

Insurance as a financial instrument has been used for a long time. The dramatic increase in competition within the insurance sector (in terms of providers coupled with awareness for the need for insurance) has concomitantly resulted in more policy options being available in the market. The insurance seller needs to know the buyer's preference for an insurance product accurately. Based on such multi-criterion decision-making, we use a logarithmic goal programming method to develop a linear utility model. The model is then used to develop a ready reckoner for policies that will aid investors in comparing them across various attributes.

Suggested Citation

  • G Dutta & S Basu & J John, 2010. "Development of utility function for life insurance buyers in the Indian market," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(4), pages 585-593, April.
  • Handle: RePEc:pal:jorsoc:v:61:y:2010:i:4:d:10.1057_jors.2009.26
    DOI: 10.1057/jors.2009.26
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/jors.2009.26
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/jors.2009.26?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. McFadden, Daniel, 1980. "Econometric Models for Probabilistic Choice among Products," The Journal of Business, University of Chicago Press, vol. 53(3), pages 13-29, July.
    2. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    3. Srinivasan, V, 1980. "Comments on "On Conjoint Analysis and Quantal Choice Models."," The Journal of Business, University of Chicago Press, vol. 53(3), pages 47-50, July.
    4. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    5. Green, Paul E & Srinivasan, V, 1978. "Conjoint Analysis in Consumer Research: Issues and Outlook," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 5(2), pages 103-123, Se.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sumeetha R. Natesan & Goutam Dutta, 2022. "A comparison of logarithmic goal programming and conjoint analysis to generate priority point vectors: an experimental approach," OPSEARCH, Springer;Operational Research Society of India, vol. 59(2), pages 518-549, June.
    2. Dutta, Goutam & Ghosh, Priyanko & Wanchoo, Arushi, 2013. "A Logarithmic Goal Programming Approach to Develop the Utility Function for Railway Travel," IIMA Working Papers WP2013-09-06, Indian Institute of Management Ahmedabad, Research and Publication Department.
    3. Natesan, Sumeetha R. & Dutta, Goutam, 2020. "Development of Utility Function for Vehicle Insurance: Comparison of Logarithmic Goal Programming Method and Conjoint Analysis Method," IIMA Working Papers WP 2020-02-01, Indian Institute of Management Ahmedabad, Research and Publication Department.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dutta, Goutam & Sankarshan Basu & John, Jose, 2008. "Development of Utility Function for Life Insurance Buyers in the Indian Market," IIMA Working Papers WP2008-12-05, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Thakur, Ramendra & Workman, Letty, 2016. "Customer portfolio management (CPM) for improved customer relationship management (CRM): Are your customers platinum, gold, silver, or bronze?," Journal of Business Research, Elsevier, vol. 69(10), pages 4095-4102.
    3. Rajshekhar G. Javalgi & Hemant K. Jain, 1988. "Integrating multiple criteria decision making models into the decision support system framework for marketing decisions," Naval Research Logistics (NRL), John Wiley & Sons, vol. 35(6), pages 575-596, December.
    4. Gabriel, Steven A. & Kumar, Satheesh & Ordonez, Javier & Nasserian, Amirali, 2006. "A multiobjective optimization model for project selection with probabilistic considerations," Socio-Economic Planning Sciences, Elsevier, vol. 40(4), pages 297-313, December.
    5. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2019. "Sigma-Mu efficiency analysis: A methodology for evaluating units through composite indicators," European Journal of Operational Research, Elsevier, vol. 278(3), pages 942-960.
    6. Ghaderi, Mohammad & Kadziński, Miłosz, 2021. "Incorporating uncovered structural patterns in value functions construction," Omega, Elsevier, vol. 99(C).
    7. Luiz Flavio Autran Monteiro Gomes & Luís Alberto Duncan Rangel & Gisele Dos Santos, 2016. "An AHP-based asset allocation model," International Journal of Business and Systems Research, Inderscience Enterprises Ltd, vol. 10(1), pages 78-99.
    8. Ishizaka, Alessio & Siraj, Sajid, 2018. "Are multi-criteria decision-making tools useful? An experimental comparative study of three methods," European Journal of Operational Research, Elsevier, vol. 264(2), pages 462-471.
    9. Jesús Peiró-Palomino & Andrés J. Picazo-Tadeo & Emili Tortosa-Ausina, 2020. "The Geography of Well-being in Colombia," Working Papers 2020/03, Economics Department, Universitat Jaume I, Castellón (Spain).
    10. Peiró-Palomino, Jesús & Picazo-Tadeo, Andrés J. & Tortosa-Ausina, Emili, 2021. "Measuring well-being in Colombian departments. The role of geography and demography," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    11. Andre, Francisco J. & Riesgo, Laura, 2007. "A non-interactive elicitation method for non-linear multiattribute utility functions: Theory and application to agricultural economics," European Journal of Operational Research, Elsevier, vol. 181(2), pages 793-807, September.
    12. Akosah, Nana Kwame & Alagidede, Imhotep Paul & Schaling, Eric, 2020. "Testing for asymmetry in monetary policy rule for small-open developing economies: Multiscale Bayesian quantile evidence from Ghana," The Journal of Economic Asymmetries, Elsevier, vol. 22(C).
    13. Winfried Steiner & Harald Hruschka, 2002. "A Probabilistic One-Step Approach to the Optimal Product Line Design Problem Using Conjoint and Cost Data," Review of Marketing Science Working Papers 1-4-1003, Berkeley Electronic Press.
    14. Cui, Xueting & Zhu, Shushang & Sun, Xiaoling & Li, Duan, 2013. "Nonlinear portfolio selection using approximate parametric Value-at-Risk," Journal of Banking & Finance, Elsevier, vol. 37(6), pages 2124-2139.
    15. Pichler, Anton & Poledna, Sebastian & Thurner, Stefan, 2021. "Systemic risk-efficient asset allocations: Minimization of systemic risk as a network optimization problem," Journal of Financial Stability, Elsevier, vol. 52(C).
    16. Peter A. Abken & Milind M. Shrikhande, 1997. "The role of currency derivatives in internationally diversified portfolios," Economic Review, Federal Reserve Bank of Atlanta, vol. 82(Q 3), pages 34-59.
    17. Dhanya Jothimani & Ravi Shankar & Surendra S. Yadav, 2018. "A Big data analytical framework for portfolio optimization," Papers 1811.07188, arXiv.org, revised Nov 2018.
    18. Leonard J. Mirman & Egas M. Salgueiro & Marc Santugini, 2013. "Integrating Real and Financial Decisions of the Firm," Cahiers de recherche 1333, CIRPEE.
    19. Merja Halme & Kari Linden & Kimmo Kääriä, 2009. "Patients’ Preferences for Generic and Branded Over-the-Counter Medicines," The Patient: Patient-Centered Outcomes Research, Springer;International Academy of Health Preference Research, vol. 2(4), pages 243-255, December.
    20. Dominique Guégan & Wayne Tarrant, 2012. "On the necessity of five risk measures," Annals of Finance, Springer, vol. 8(4), pages 533-552, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorsoc:v:61:y:2010:i:4:d:10.1057_jors.2009.26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.