Yugoslav Journal of Operations Research 2024 OnLine-First Issue 00, Pages: 5-5
https://doi.org/10.2298/YJOR231215005G
Full text ( 687 KB)
Navigating challenges in the insurance industry: A comparative MCDM analysis of developed and developing countries
Gohar Ali (College of Business and Management, Fahad Bin Sultan University, Tabuk, KSA), agohar@fbsu.edu.sa
Insurance Policy adoption is the key to a better and safer living whether it
comes to the individual or a business setup. Over the years this sector has
been exposed to various challenges, especially when it comes to stability
and gaining the trust of the people and organizations. The bigger struggle
is the business hurdles this sector faces in a developing country and to do
so, the current study was conducted to assess the attitude of Pakistani
citizens toward insurance programs. Specifically, the study examines the
reluctance of Pakistanis to purchase insurance policies as a means of
protecting their savings. Due to the lesser available knowledge among the
citizens, the reluctance towards the insurance policies is quite at a larger
scale. To analyze this fact, MCDM techniques, i.e., TOPSIS and Decision
Theory, have been implied to provide a means of assessing the efficiency of
insurance companies and the reasons for their lagging in convincing the
public to start changing their investment behavior. A comprehensive study of
all Pakistani insurance companies has been conducted here. The data was
obtained from the published financial statements of insurance companies, and
the analysis of primary data was collected from two categories of people;
employees and customers. The data enabled the current research to make a
comparison between insurance in Pakistan and abroad to see how the two
situations vary. According to the results, the companies abroad are more
advanced in terms of means and facilities they provide in insurance, while
in contrast, the lack of awareness and lesser trust in the companies leads
to fewer insurance policies adoption in Pakistan.
Keywords: Insurance, policy, MCDM, developing country, TOPSIS, decision theory