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Identification and Ranking of Effective Financial ratios in the Evaluation and Financial Stability of Insurance Companies in Iran
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Asma Hamzeh *   |
| Insurance Research Center , hamzeh@irc.ac.ir |
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Abstract: (389 Views) |
| Financial evaluation of insurance companies has always been considered one of the important concerns in the development of insurance services and thus increasing insurance penetration in countries. On the other hand, the multiplicity of executions and factors affecting the success of insurance companies make the relevant evaluation factors and indicators have a certain complexity. The regulator should formulate its method of financial valuation based on the information it receives directly from insurance companies. To achieve this goal, it is necessary to explain the indicators in important areas and to weigh them according to their importance. Therefore, in this study, by analyzing the content of written documents and examining the indicators of rating agencies and analytical tools of world insurance regulators, the financial evaluation indicators of insurance companies were identified, and then the indicators were weighted using the Shanon entropy model. The results showed that the financial ratios have the necessary validity to evaluate the situation of insurance companies. Therefore, it is suggested to the supervisory institutions to complete and correct these indicators and take the necessary measures towards the requirements governing the disclosure of information related to these ratios, and in this way, the effectiveness of financial statement information in the process of making informed judgments and rational decision-making will increase. |
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| Keywords: Financial evaluation, Weighting, The Shannon Entropy Method. |
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Full-Text [PDF 1042 kb]
(108 Downloads)
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Type of Study: Applicable |
Subject:
Special
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