Evaluation models of insurers’ risk management based on large system theory

Xiaobei Liang, Demian Chen, Da Ruan, Bingyong Tang, Özgür Kabak

    Research outputpeer-review


    The financial supply chain is recognized as an area offering significant potential for generating bottom-line improvements and creating competitive advantage. Insurers’ appraisal is a basic decision for a company, and the choosing course has always many criteria. Considering the stability of the financial supply chain, the coordination evaluation and fuzzy multi-objective evaluation model of insurers’ risk management are studied by using large system theory and methods. The corresponding coordination evaluation index model is established to evaluate, forecast and control the actuality and the future of risk coordination management, and to improve the durative development for a combination pension model. The evaluation standards of numerous insurers are established to constitute a set of vectors. By presenting a dimensional point to each insurer, the optimal or the worst insurer is decided. Finally, the distances of each insurer to the optimal or the worst insurer on the basis of the Euclidean distance are counted, and the insurers’ ordering according to the value of distances is sorted out. The financial supply chain and large system theory and methods are combined to contribute new evaluation models that revise the deficiency of intrinsic model and improve the financial stability.
    Original languageEnglish
    Pages (from-to)415-423
    JournalStochastic Environmental Research and Risk Assessment
    Issue number4
    StatePublished - May 2009

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