PERFORMANCE ANALYSIS OF INSURANCE COMPANIES OPERATING IN THE TURKISH INSURANCE SECTOR’S LIFE AND RETIREMENT BRANCHES USING MULTIPLE-CRITERIA DECISION MAKING METHODS

Abstract

The aim of this study is to measure the performances of insurance companies operating in the life branch of the Turkish insurance sector by using the multi-criteria decision making (MCDM) technique CRITIC (Criteria Importance Through Intercriteria Correlation) and TOPSIS (Technique for Order Preference by Similarity to Ideal Solution). For this purpose, the study discusses data for 2010-2020 from 18 life insurance companies operating in the Turkish insurance sector. The criteria selected for the analysis are Short-Term Liabilities / Total Assets, Net Profit for the Period / Total Assets, Current Assets / Short-Term Liabilities, Operating Expenses / Total Assets, Realized Claims / Earned Premium (Net), Total Equity / Total Assets for the CRITIC – TOPSIS integrated model, Premiums Received (Net) / Premiums Received (Gross), Profit Before Taxes / Premiums Received (Gross), Net Profit / Total Equity and Technical Profit-Loss / Premiums Received. The most important performance criterion for insurance companies according to the CRITIC method is the Short-Term Liabilities/Total Assets criterion. According to the criteria taken into account based on the TOPSIS results, it is seen that Halk Hayat ve Emeklilik A.Ş. and Ziraat Hayat ve Emeklilik A.Ş rank around the top of the list in terms of performance. It has been determined that BNP Paribas Cardif Hayat A.Ş. ranks at the bottom of the list throughout the analysis.