Advertisement

Application of Classification Methods to the Evaluation of Polish Insurance Companies

  • Marta Borda
  • Patrycja Kowalczyk-Lizak
Part of the Studies in Classification, Data Analysis, and Knowledge Organization book series (STUDIES CLASS)

Abstract

The evaluation of the financial standing is in the interest of both the insurance companies and other groups of businesses operating in the insurance market. The paper presents the selection of ratios characterizing the financial standing of the insurance companies in the Polish market. The authors have applied the k-means method and Ward’s method in order to classify the insurance companies according to their financial situation. The obtained results show the variation in the financial standing of the analyzed insurers and changes in this field over the last few years.

Keywords

Life Insurance Debt Ratio Polish Insurance Company Insurance Business Life Insurance Company 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. AMBROSE, J. M. and SEWARD, A. (1988): Best’s Ratings, Financial Ratios and Prior Probabilities in Insolvency Prediction. Journal of Risk and Insurance, 55,2, 229–244.Google Scholar
  2. BABBEL, D.F. and SANTOMERO, A.M. (1997): Financial Risk Management by Insurers: An Analysis of the Process. Journal of Risk and Insurance, 64, 231–270.Google Scholar
  3. BLACK, K. Jr. and SKIPPER, H.D. Jr. (2000): Life & Health Insurance, 13th ed., Prentice-Hall, Upper Saddle River, NJ.Google Scholar
  4. HARTIGAN, J.A. (1975): Clustering Algorithms. Wiley, New York.Google Scholar
  5. HARTIGAN, J.A. and WONG, M.A. (1979): A K-means Clustering Algorithm, Algorithm AS136. Applied Statistics, 28,1, 100–108.Google Scholar
  6. JAJUGA, K. (1990): Statistical pattern recognition, (in Polish language). Warsaw: PWN.Google Scholar
  7. JAJUGA, K., KUZIAK, K., and WALESIAK, M. (2001): An attempt to the application of classification methods in insurance rating (in Polish language). Taxonomy, 8, Wroclaw.Google Scholar
  8. JAWORSKI, W. (2002): Insurance Rating (in Polish language). Poznań: AE.Google Scholar
  9. KLEIN, R. (1992): Insurance company rating agencies: A description of their methods and procedures. NAIC, Kansas City.Google Scholar
  10. KNUiFE, Department of Analysis of the Polish Insurance System (2001): Methodology of financial analysis of the insurance companies (in Polish language). Warsaw.Google Scholar
  11. RONKA-CHMIELOWIEC, W. and KUZIAK, K. (1999): Clustering of Insurance Companies under Financial Condition, (in Polish language). Taxonomy, 6, Wroclaw.Google Scholar
  12. SINGH, A.K. and POWER, M.L. (1992): The Effects of Best’s Rating Changes on Insurance Companies Stock Prices. Journal of Risk and Insurance, 59, 310–311.Google Scholar
  13. WARD, J.H. (1963): Hierarchical Grouping to Optimize an Objective Function. Journal of the American Statistical Association, 58, 236–244.MathSciNetCrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin · Heidelberg 2005

Authors and Affiliations

  • Marta Borda
    • 1
  • Patrycja Kowalczyk-Lizak
    • 1
  1. 1.Department of Financial Investments and InsuranceWroclaw University of EconomicsWroclawPoland

Personalised recommendations