MULTI-CRITERIA EVALUATION OF INSURANCE INDUSTRIES PERFORMANCE: AN ANALYSIS OF EDAS BASED ON THE ENTROPY WEIGHT

Insurance industries have grown remarkably since the late 1990s. Governments require a benchmarking tool to measure their insurance industry's performance according to specific various indicators. The best practice benchmarking of insurance can be achieved by evaluating numerous insurance industries through prioritizing and identifying the top industries. This paper presents a multi-criteria evaluation framework for insurance performance of Organization for Economic Cooperation and Development (OECD) countries by investigating conflicting and incommensurate insurance indicators for the period of 2010-2017. For the basis of the evaluation, eight main insurance performance inductors were identified and then their weights were determined using the entropy method. The resultant entropy weights were then applied in the evaluation based on distance from average solution (EDAS) method for determining preferential rankings of insurance industries. The ranked insurance industries were classified into groups of similar levels of performance. Sensitivity analysis was applied to the main criteria to examine the robustness of the prioritizing results. The results indicate insurance markets in United States, the United Kingdom, Germany, France, and Japan are ranked higher than the remaining 25 OECD countries.