Performance evaluation of an insurance company using an integrated Balanced Scorecard (BSC) and Best-Worst Method (BWM)

Abstract

Recent economy and financial business environment is undergoing a quick and accelerating revolution and paradigm shift, resulting in growing uncertainty and complexity. Therefore, the need for an all-inclusive and far-reaching performance measurement model is universally felt as it can provide management-oriented information and act as a supporting tool in developing, inspecting, and interpreting policy-making strategies of an enterprise to achieve competitive advantages. Hence, this paper proposes an application of the balanced scorecard (BSC) model in an insurance organization for coordinating and regulating its corporate vision, mission, and strategy with organizational performance through the interrelation of different layers of business perspectives. In the next stage, a framework to unify both BSC and best-worst method (BWM) models is implemented for the very first time in the insurance domain to assess its performance over two-time periods. The integrated BSC-BWM model can help managers and decision-makers to figure out and interpret competing strength of the said enterprise and consecutively expedite inefficient and compelling decision making. Nevertheless, this integrated model is embraced and selected for a certain categorical business and there is enough future scope for its application to distinct industries.