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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
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. 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.

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