Determining Insurance Companies’ Product Portfolio through Using Multi Criteria Decision Making techniques: A Case Study in Mellat Insurance Company

Abstract

Since the creation of man, the risk has been associated with humans and humans in a way to get rid of these risks. Insurance has a major role in offsetting the financial impact for the people. The concern of organizations’ senior managers with several different products is using of appropriate models for portfolio management and for determining of combined production of profitable products. There is not any exception for insurance companies. In this paper, by using multi-criteria decision making methods, we have suggested models for ranking different insurance products and determining the product portfolio of insurance companies. Using Analytical Hierarchy Process, Analytic Network Process, TOPSIS and combination of these methods, moreover considering criteria consist of the share of the portfolio, market share, loss coefficient and market growth rate, the Mellat insurance company’s product portfolio has been determined. In addition, the best production portfolio for the insurance company has been proposed using Borda method.