A fuzzy multi-criteria decision-making method for purchasing life insurance in India

Chinmaya Ranjan Pattnaik, Sachi Nandan Mohanty, Sarita Mohanty, Jyotir Moy Chatterjee, Biswajit Jana, Vicente Garcia Diaz

Abstract


Life insurance is an agreement between an insured and an insurer, where the insurer pays out a sum of money either on a specific period or the death of the insured. Now a day, People can buy a policy through an online platform. There are a lot of insurance companies available in the market, and each company has various policies. Selecting the best insurance company for purchasing an online term plan is a very complex problem. People may confuse to choose the best insurance company for buying an online term. It is a multi-criteria decision making (MCDM) problem, and the problem consists of different criteria and various alternatives. Here in this paper, a model has been proposed to solve this decision-making problem. In this model, a fuzzy multi-criteria decision-making approach combined with technique for order preference by similarity to ideal solution (TOPSIS) and it has been applied to rank the different insurance companies based on online term plans. The experimental results show that the life insurance corporation of India (LIC) gets the top rank out of 12 companies for purchasing an online term plan. A sensitivity analysis has been performed to validate the proposed model.


Keywords


Life insurance; Multi criterion decision-making approach; Fuzzy MCDM; TOPSIS

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DOI: https://doi.org/10.11591/eei.v10i1.2275

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