ISSN: 1304-7191 | E-ISSN: 1304-7205
Financial and Technical Analysis of Insurance Sector with Goal Programming Model
1Hacettepe University, Department of Actuarial Science, ANKARA
Sigma J Eng Nat Sci 2018; 36(2): 553-561
Full Text PDF


In today’s business environment, management decision making in many insurance agencies and banks has become a complex task. Profit maximization or cost minimization are not always the only objects that a firm sets for. For these firms a variety of goals influence the decisions. Goal programming, one of the methods used to solve multi-objective linear programming models, can solve decision problems involving multiple goals. In this paper two different goal programming models are constructed for Turkey’s non-life insurance sector to find an optimal solution with different goals for financial and technical analysis. In the first model five different financial ratios and in the second model four different technical ratios are used. The five years data is considered in these models. All goals which are set in the models are fully achieved. These models can be used as a guideline for insurance companies in their agency management and financial modeling.