IDEAS home Printed from https://ideas.repec.org/a/sae/globus/v24y2023i5p972-989.html
   My bibliography  Save this article

Prioritizing Risk-level Factors in Comprehensive Automobile Insurance Management: A Hybrid Multi-criteria Decision-making Model

Author

Listed:
  • Zahra Shams Esfandabadi
  • Meisam Ranjbari
  • Simone Domenico Scagnelli

Abstract

An efficient risk-level prediction for newly proposed insurance policies plays a significant role in the survival of companies in the highly competitive insurance market. In Iran, risk assessment in comprehensive automobile insurance, which is a part of motor insurance, is only based on the vehicle attributes without proper consideration of personal and behavioural characteristics of driver(s). As a result, pricing is unfair in most of the cases and this can put insurance companies in an unfavourable financial position due to attracting high-risk drivers instead of low-risk ones. In this scenario, to identify and prioritize important factors affecting risk levels and to move towards a fair ratemaking, a two-phase process based on fuzzy Delphi method (FDM) and fuzzy analytic hierarchy process (FAHP) is proposed in this research. Additionally, similarity aggregation method (SAM) is applied to combine the individual fuzzy opinions of the surveyed experts into a group fuzzy consensus opinion. The results of this empirical study contribute to the insurance market of Iran by proposing appropriate weighting of the relevant risk factors to support stakeholders and policymakers for assessing risks more accurately, as well as designing more effective databases and insurance proposal forms.

Suggested Citation

  • Zahra Shams Esfandabadi & Meisam Ranjbari & Simone Domenico Scagnelli, 2023. "Prioritizing Risk-level Factors in Comprehensive Automobile Insurance Management: A Hybrid Multi-criteria Decision-making Model," Global Business Review, International Management Institute, vol. 24(5), pages 972-989, October.
    • Handle: RePEc:sae:globus:v:24:y:2023:i:5:p:972-989
    DOI: 10.1177/0972150920932287
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0972150920932287
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0972150920932287?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
    ---><---

    References listed on IDEAS

    as
    1. Ramin Gharizadeh Beiragh & Reza Alizadeh & Saeid Shafiei Kaleibari & Fausto Cavallaro & Sarfaraz Hashemkhani Zolfani & Romualdas Bausys & Abbas Mardani, 2020. "An integrated Multi-Criteria Decision Making Model for Sustainability Performance Assessment for Insurance Companies," Sustainability, MDPI, vol. 12(3), pages 1-24, January.
    2. Herbert Dawid & Reinhold Decker & Thomas Hermann & Hermann Jahnke & Wilhelm Klat & Rolf König & Christian Stummer, 2017. "Management science in the era of smart consumer products: challenges and research perspectives," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 25(1), pages 203-230, March.
    3. Lucie Lidinska & Josef Jablonsky, 2018. "AHP model for performance evaluation of employees in a Czech management consulting company," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(1), pages 239-258, March.
    4. Xianguo Li & Qian Zhang, 2015. "AHP-based resources and environment efficiency evaluation index system construction about the west side of Taiwan Straits," Annals of Operations Research, Springer, vol. 228(1), pages 97-111, May.
    5. Kilic, Bilal & Ucler, Caglar, 2019. "Stress among ab-initio pilots: A model of contributing factors by AHP," Journal of Air Transport Management, Elsevier, vol. 80(C), pages 1-1.
    6. Mahak Sharma & Ruchita Gupta & Padmanav Acharya, 2020. "Prioritizing the Critical Factors of Cloud Computing Adoption Using Multi-criteria Decision-making Techniques," Global Business Review, International Management Institute, vol. 21(1), pages 142-161, February.
    7. Alizadeh, Reza & Soltanisehat, Leili & Lund, Peter D. & Zamanisabzi, Hamed, 2020. "Improving renewable energy policy planning and decision-making through a hybrid MCDM method," Energy Policy, Elsevier, vol. 137(C).
    Full references (including those not matched with items on IDEAS)

    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. Alizadeh, Reza & Gharizadeh Beiragh, Ramin & Soltanisehat, Leili & Soltanzadeh, Elham & Lund, Peter D., 2020. "Performance evaluation of complex electricity generation systems: A dynamic network-based data envelopment analysis approach," Energy Economics, Elsevier, vol. 91(C).
    2. Torkayesh, Ali Ebadi & Alizadeh, Reza & Soltanisehat, Leili & Torkayesh, Sajjad Ebadi & Lund, Peter D., 2022. "A comparative assessment of air quality across European countries using an integrated decision support model," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    3. Alizadeh, Reza & Lund, Peter D. & Soltanisehat, Leili, 2020. "Outlook on biofuels in future studies: A systematic literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    4. Wang, Ni & Heijnen, Petra W. & Imhof, Pieter J., 2020. "A multi-actor perspective on multi-objective regional energy system planning," Energy Policy, Elsevier, vol. 143(C).
    5. Priom Mahmud & Sanjoy Kumar Paul & Abdullahil Azeem & Priyabrata Chowdhury, 2021. "Evaluating Supply Chain Collaboration Barriers in Small- and Medium-Sized Enterprises," Sustainability, MDPI, vol. 13(13), pages 1-28, July.
    6. Petra Tomanová & Michal černý, 2022. "Efficiency of antiquarian bookshops in informationally complete markets," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 30(2), pages 573-593, June.
    7. Alpana Agarwal & Divina Raghav, 2023. "Analysing Determinants of Employee Performance Based on Reverse Mentoring and Employer Branding Using Analytic Hierarchical Process," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 48(3), pages 343-358, August.
    8. Xiaoyu Liu & Liangjie Xin, 2022. "Assessment of the Efficiency of Cultivated Land Occupied by Urban and Rural Construction Land in China from 1990 to 2020," Land, MDPI, vol. 11(6), pages 1-12, June.
    9. Alina Vysochyna & Natalia Stoyanets & Grzegorz Mentel & Tadeusz Olejarz, 2020. "Environmental Determinants of a Country’s Food Security in Short-Term and Long-Term Perspectives," Sustainability, MDPI, vol. 12(10), pages 1-15, May.
    10. Yan Xu & Chung-Hsing Yeh, 2017. "Sustainability-based selection decisions for e-waste recycling operations," Annals of Operations Research, Springer, vol. 248(1), pages 531-552, January.
    11. Pritpal Singh & Gurdeep Singh & G. P. S. Sodhi, 2022. "Data envelopment analysis based optimization for improving net ecosystem carbon and energy budget in cotton (Gossypium hirsutum L.) cultivation: methods and a case study of north-western India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2079-2119, February.
    12. José Carlos Romero & Pedro Linares, 2021. "Multiple Criteria Decision-Making as an Operational Conceptualization of Energy Sustainability," Sustainability, MDPI, vol. 13(21), pages 1-14, October.
    13. Ali RezaHoseini & Zahra Rahmani & Morteza BagherPour, 2022. "Performance evaluation of sustainable projects: a possibilistic integrated novel analytic hierarchy process-data envelopment analysis approach using Z-Number information," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 3198-3257, March.
    14. Ali Mostafaeipour & Seyyed Jalaladdin Hosseini Dehshiri & Seyyed Shahabaddin Hosseini Dehshiri & Mehdi Jahangiri & Kuaanan Techato, 2020. "A Thorough Analysis of Potential Geothermal Project Locations in Afghanistan," Sustainability, MDPI, vol. 12(20), pages 1-17, October.
    15. Immanuel Bomze & Karl F. Dörner & Richard F. Hartl & Ulrike Leopold-Wildburger & Georg Pflug & Marion Rauner & Christian Stummer & Gernot Tragler & Tina Wakolbinger, 2018. "Emerging and innovative OR applications: a special issue in honor of Walter J. Gutjahr," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(2), pages 259-263, June.
    16. Dean Kyne, 2023. "A Bird’s-Eye View of Colonias Hosting Forgotten Americans and Their Community Resilience in the Rio Grande Valley," Geographies, MDPI, vol. 3(3), pages 1-18, July.
    17. Aswathy Sreenivasan & M. Suresh, 2024. "Enabling technologies influencing the start-up operations 5.0," Operations Management Research, Springer, vol. 17(3), pages 869-890, September.
    18. Emel Yontar & Onur Derse, 2023. "Evaluation of sustainable energy action plan strategies with a SWOT/TWOS-based AHP/ANP approach: a case study," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(6), pages 5691-5715, June.
    19. Sojung Kim & Henri Christiaans & Joon Sang Baek, 2019. "Smart Homes as Product-Service Systems: Two Focal Areas for Developing Competitive Smart Home Appliances," Service Science, INFORMS, vol. 11(4), pages 292-310, December.
    20. Chen, Kaihua & Ren, Zhipeng & Mu, Shijun & Sun, Tara Qian & Mu, Rongping, 2020. "Integrating the Delphi survey into scenario planning for China's renewable energy development strategy towards 2030," Technological Forecasting and Social Change, Elsevier, vol. 158(C).

    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:sae:globus:v:24:y:2023:i:5:p:972-989. 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: SAGE Publications (email available below). General contact details of provider: http://www.imi.edu/ .

    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.