ARTICLE

EVALUATING PERFORMANCE OF INSURANCE SECTOR IN PAKISTAN THROUGH BENCHMARK PERFORMANCE INDICATORS

  1. HOME
  2. ARTICLE

37 Pages : 363-372

http://dx.doi.org/10.31703/gssr.2021(VI-I).37      10.31703/gssr.2021(VI-I).37      Published : Mar 2021

Evaluating Performance of Insurance Sector in Pakistan Through Benchmark Performance Indicators

Abstract

    Benchmarking has been very important in measurement, comparison, and improvement. Important benchmarking indicators such as leverage, liquidity, stock performance, profitability, asset utilization and growth are used to examine the performance of various companies in different businesses. The current study is based on secondary data, which were collected from annual reports of 14 insurance companies of the Listed Pakistan Stock Exchange during the period of 2014-2018. For this purpose, the Technique for order Preferences by the Similarity to Ideal Solution (TOPSIS) based on Grey Relation Analysis (GRA) has been used. The findings of the study help managers of moderate growth and low growth insurance companies to formulate policies to improve their performance by looking at the policies of highly growing Insurance companies. The results concluded that overall ranking of insurance companies from 2014 to 2018, JLIL ranked 1st in overall performance in the year 2014. It is due to high net sales and total investment returns as compared to other insurance companies.

    (1) Bakhtawar
    Institute of Business Management Sciences, Faculty of Social Sciences, University of Agriculture, Faisalabad, Punjab, Pakistan.
    (2) Kashif Hamid
    Institute of Business Management Sciences, Faculty of Social Sciences, University of Agriculture, Faisalabad, Punjab, Pakistan.
    (3) Ali Raza
    Lecturer, Department of Commerce, Government Associate College for Boys, Kameer Town Sahiwal, Punjab, Pakistan.
Fulltext PDF

References

  • Alali, M. S., Boyabes, H. S., & Alfailakawi, A. S. (2018). The evaluation of macroeconomic factors influences on the financial performance of general insurance companies listed at the Kuwait Stock Exchange. Int. Aca. J. Eco. Fin. 3, 427-434.
  • Ashraf, S. F., Li, C., & Mehmood, B. (2017). A Study of Premium Price Brands with Special Reference to Willingness of Customer to Pay. International Journal of Academic Research in Business and Social Sciences, 7(7), 619-639.
  • Ashraf, S. F., Li, C., Butt, R., Naz, S., & Zafar, Z. (2019). Education as Moderator: Integrative Effect towards Succession Planning Process of Small Family Businesses. Pac. Bus. Rev. Int, 11, 107-123.
  • Bajwa, C. A., Arif, I., & Din, W. D. (2018). Benchmarking performance indicators: Evidence from banking sector of Pakistan. J. Int. Ban. Com. 23, 1-16.
  • Bulgurcu, B. K. (2012). Application of TOPSIS technique for financial performance evaluation of technology firms in Istanbul stock exchange market. Procedia-Social and Behavioral Sciences, 62, 1033-1040.
  • Çam, A. V., Çam, H., Lutas, S., & Okatan, B. S. (2015). The role of TOPSIS method of determining the financial performance ranking of firms: An application in the Borsa Istanbul. Int. J. Eco. Res. 6, 29-38.
  • Camp, R. C. (1989). Benchmarking the search for industry best practices that lead to superior performance: Quality Progress, January. 61- 8.
  • Codling, S. (1996). Best practice benchmarking: An international perspective. Butterworth- Heinemann. 6: 66-80
  • Dang, T. L, & Nguyen, T. M. H. (2020). Liquidity risk and stock performance during the financial crisis. Res. Int. Bus. Fin. 52: 101165.
  • Dattakumar, R. & Jagadeesh, R. (2003). A review of literature on benchmarking. Bench. Int. J. 10: 176-209.
  • Dogan, M. (2013). Measuring bank performance with Gray Relational Analysis: The case of Turkey. Ege. Aca. Rev. 13: 215-225.
  • Gitman, L. J. (2004). The principle of managerial finance, Pearson Education Publishers Singapore. 12: 64-67.
  • Ho, C. T. (2006). Measuring bank operations performance: an approach based on Grey Relation Analysis. J. Ope. Res. Soc. 57: 337- 349.
  • Ho, C. T., & Wu, Y. S. (2006). Benchmarking performance indicators for banks. Ben. Int. J. 13: 147-159.
  • Isseveroglu, G. & Sezer, O. (2015). Financial performance of pension companies operating in turkey by topsis analysis method. Int. J. Aca. Res. Acc. Fin. Man. Sci. 5: 137-147.
  • Jahanshahloo, G. R., Lotfi, F. H., & Izadikhah, M. (2006). Extension of the TOPSIS method for decision-making problems with fuzzy data. App. Mat. com. 1812, 1544-1551.
  • Kaya, E. O. (2016). Financial performance assessment of non-life insurance companies traded in Borsa Istanbul via grey relational analysis. Int. J. Eco. Fin. 8, 277- 288.
  • Khurram, M. U., Hamid, K. & Javeed, S. A. (2020). Association of Mutual Fund Risk Measures and Return Parameters: A Juxtapose of Ranking for Performance in Pakistan.
  • Khurram, M. U., Hamid, K. & Javeed, S. A. (2021). Association of Mutual Fund Risk Measures and Return Parameters: A Juxtapose of Ranking for Performance in Pakistan. The Journal of Asian Finance, Economics and Business (JAFEB), 8(2), 25- 39.
  • Lai, Y. J., Liu, T. Y., & Hwang, C. L. (1994).
  • Li, C., Ashraf, S. F., Shahzad, F., Bashir, I., Murad, M., Syed, N., & Riaz, M. (2020). Influence of Knowledge Management Practices on Entrepreneurial and Organizational Performance: A Mediated-Moderation Model. Frontiers in Psychology, 11.
  • Liargovas, P. & Skandalis, K. (2008). Factor affecting firm's financial performance: The Case of Greece. Athens: University of Peloponnese Press. J. aca. Stu. 10, 45-70
  • Mediawati, E. & Agustami, S. (2016). Sharia compliance on murabaha financing. Glo. Con. Bus. Man. Ent. 30, 110-130.
  • Meher, K. C. & Zewudu, T. (2020). Determinants of firm's internals and macroeconomic factors on financial performance of Ethiopian insurers. DLSU. Bus. Eco. Rev. 29: 71-80.
  • Nwaorgu, I. A. J., Odesa, O. & Nzoegbu, N. J. (2019). Effect of Director's Tunneling on Assets Utilization: Evidence from Corporate Organizations in Nigeria. J. Eco. Man. Tra. 12: 1-9.
  • Ramaditya, M., Supriati, D. & Prasetyo, Z. E. (2019). Company specific characteristics, leverage, share performance (a case study of manufacturing companies in indonesia). Int. Con. Acc. Res. 2: 14-3
  • Rao, M., Khursheed, A. & Mustafa, F. (2020). The impact of concentrated leverage and ownership on firm performance: a case in Pakistan. 16: 10-31
  • SaÅ‚abun, W. (2013). The mean error estimation of TOPSIS method using a fuzzy reference model. J. The. App. Com. Sci. 7: 40-50.
  • Sari, T., Baynal, K. & Ergül, O. (2016). Supplier selection with grey relational analysis. Int. J. Eme. Res. Man. Tec. 5: 61-70.
  • Shih, K. C., Wu, G. Q. & Huang, Y. P. (1994). The Relation of Grey Information. Chyuan-Chen Technology Co. Publishing: Taipei, Taiwan. 9: 30-45
  • Still, M. D & Strang, D. (2009). Who does an elite organization emulate? Adm. Sci. Qua. 54: 58-89
  • Xiong, Y. (2007). Grey relational evaluation of financial situation of listed company. J. Mod. Acc. Aud. 3: 41-64.

Cite this article

APA

    APA : Bakhtawar., Hamid, K., & Raza, A. (2021). Evaluating Performance of Insurance Sector in Pakistan Through Benchmark Performance Indicators. Global Social Sciences Review, VI(I), 363-372. https://doi.org/10.31703/gssr.2021(VI-I).37

CHICAGO

    CHICAGO : Bakhtawar, , Kashif Hamid, and Ali Raza. 2021. "Evaluating Performance of Insurance Sector in Pakistan Through Benchmark Performance Indicators." Global Social Sciences Review, VI (I): 363-372 doi: 10.31703/gssr.2021(VI-I).37

HARVARD

    HARVARD : BAKHTAWAR., HAMID, K. & RAZA, A. 2021. Evaluating Performance of Insurance Sector in Pakistan Through Benchmark Performance Indicators. Global Social Sciences Review, VI, 363-372.

MHRA

    MHRA : Bakhtawar, , Kashif Hamid, and Ali Raza. 2021. "Evaluating Performance of Insurance Sector in Pakistan Through Benchmark Performance Indicators." Global Social Sciences Review, VI: 363-372

MLA

    MLA : Bakhtawar, , Kashif Hamid, and Ali Raza. "Evaluating Performance of Insurance Sector in Pakistan Through Benchmark Performance Indicators." Global Social Sciences Review, VI.I (2021): 363-372 Print.

OXFORD

    OXFORD : Bakhtawar, , Hamid, Kashif, and Raza, Ali (2021), "Evaluating Performance of Insurance Sector in Pakistan Through Benchmark Performance Indicators", Global Social Sciences Review, VI (I), 363-372

TURABIAN

    TURABIAN : Bakhtawar, , Kashif Hamid, and Ali Raza. "Evaluating Performance of Insurance Sector in Pakistan Through Benchmark Performance Indicators." Global Social Sciences Review VI, no. I (2021): 363-372. https://doi.org/10.31703/gssr.2021(VI-I).37