Analysis of the efficiency of insurance companies in Serbia using the fuzzy AHP and TOPSIS methods

Abstract

The aim of this study is to propose a fuzzy multi-criteria model that will facilitate the assessment of insurance companies' efficiency. This study includes all companies operating within the insurance sector in Serbia in the period from 2007 to 2014 and the data were used from the published financial statements of insurance companies. Five key indicators were identified for the assessment and rating of insurance companies. Fuzzy Analytic Hierarchy Process (FAHP) and Technique for Order Performance by Similarity to Ideal Solution (TOPSIS) were used for building the proposed model. In the first stage, priority weights of criteria were defined by using the FAHP, while in the second phase the insurance companies were ranked using the TOPSIS method.