C4 - Econometric and Statistical Methods: Special TopicsReturn

The aim of the article is to determine and verify the key indicators of the assessment of the level of management of non-life insurance companies by applying multi-criteria decomposition methods. The specific indicators considered include standard financial analysis indicators (equity ratio, total debt ratio, return on equity indicator and return on assets), specific financial indicators of insurance companies (claims ratio, capital adequacy ratio, technical adequacy ratio, solvency ratio indicator and more) and indicators that are used to analyze the level of the insurance market (gross premiums written, net premiums earned and number of insurance contracts concluded). Firstly, multicriteria decomposition methods are described: analytical hierarchical process and analytical network process. Both approaches are described including the calculation procedure. Subsequently, they are applied in determining the preferences of indicators of the assessment of the level of management of insurance companies. Our results show the resulting preferences of individual indicators for assessing the level of performance of non-life insurance companies and key indicators. The most important indicators that can be described as the key indicators with a high preference are return on equity indicator, gross premiums written, return on assets, claims ratio and solvency ratio indicator.