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An integrated Multi-Criteria Decision Making Model for Sustainability Performance Assessment for Insurance Companies

Authors: Ramin Gharizadeh Beiragh; Reza Alizadeh; Saeed Shafiei Kaleibari; Fausto Cavallaro; Sarfaraz Zolfani; Romualdas Bausys; Abbas Mardani;

An integrated Multi-Criteria Decision Making Model for Sustainability Performance Assessment for Insurance Companies

Abstract

To stay competitive in a business environment, continuous performance evaluation based on the triple bottom line standard of sustainability is necessary. There is a gap in addressing the computational expense caused by increased decision units due to increasing the performance evaluation indices to more accuracy in the evaluation. We successfully addressed these two gaps through (1) using principal component analysis (PCA) to cut the number of evaluation indices, and (2) since PCA itself has the problem of merely using the data distribution without considering the domain-related knowledge, we utilized Analytic Hierarchy Process (AHP) to rank the indices through the expert’s domain-related knowledge. We propose an integrated approach for sustainability performance assessment in qualitative and quantitative perspectives. Fourteen insurance companies were evaluated using eight economic, three environmental, and four social indices. The indices were ranked by expert judgment though an analytical hierarchy process as subjective weighting, and then principal component analysis as objective weighting was used to reduce the number of indices. The obtained principal components were then used as variables in the data envelopment analysis model. So, subjective and objective evaluations were integrated. Finally, for validating the results, Spearman and Kendall’s Tau correlation tests were used. The results show that Dana, Razi, and Dey had the best sustainability performance.

Countries
Italy, Lithuania, Lithuania
Related Organizations
Keywords

Environmental effects of industries and plants, analytic hierarchy process (AHP), data envelopment analysis (dea), TJ807-830, principal component analysis (pca), sustainability, TD194-195, Renewable energy sources, Environmental sciences, data envelopment analysis (DEA), analytic hierarchy process (ahp), insurance companies, GE1-350, Analytic hierarchy process (AHP); Data envelopment analysis (DEA); Insurance companies; Principal component analysis (PCA); Sustainability, principal component analysis (PCA)

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    citations
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    79
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 1%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Top 10%
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Top 1%
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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
79
Top 1%
Top 10%
Top 1%
gold