Choice of Life Insurance Companies by Using Analytic Hierarchy Process: Experience of the Republic of Serbia

Predrag Mimović, Milena Jakšić, Violeta Todorović


In the second half of the twentieth century, real and financial property sector underwent a number of changes caused by intense globalization, deregulation, and technical and technological revolution. These changes included, among other things, increased risk exposure, typical of activities in these sectors. In such a turbulent environment, the primary objective of the individual and the economy as a whole is to safeguard the life of members of a national community. By purchasing insurance, risk is transferred from an individual to a group, eliminating uncertainty in terms of financial loss in a defined case. Therefore, life insurance, as an important economic and social category, is increasingly gaining in importance. Given the above, the paper analyzes factors relevant for the selection of insurance companies in the Republic of Serbia. At the same time, Analytic Hierarchy Process is applied, measuring relevance of the impact of various factors on the choice of an appropriate insurance company. The results obtained by comparing factors identified show that, in the selection process, among all other alternatives, respondents favor reliability of insurance companies.

Key words: risk, insurance, evaluation, selection, analytic hierarchy process

Full Text:



Ishizaka, A., Labib, A. (2011). Review of the main developments in the analytic hierarchy process. Expert Systems with Applications, 38(11), 14336–14345, DOI: 10.1016/j.eswa.2011.04.143.

Jain, D., Talach, K. (2012). A Study of Factors Influencing Consumer Choice of Life Insurance Products. IJMRS’s International Journal of Management Sciences, 1(2), ISSN: 2277-968X, 11-21.

Katole, H. (2012). Customers’ Preference Parameters for Investing in Insurance: A Case on Indian Prospective. International Journal of Advances in Management and Economics, 1(6), 1-8, ISSN: 2278-3369.

Lin, Y., Grace, M.F. (2007). Household Life Cycle Protection: Life Insurance Holdings, Financial Vulner-ability, and Portfolio Implications. Journal of Risk and Insurance, 74(1), 141-173, DOI:

Marinković,V., Senić, V., Mimović, P. (2015). Factors affecting choice and image of ethnic restaurants in Serbia. British Food Journal, 117(7), 1903-1920, DOI:10.1108/BFJ-12-2014-0409.

Mathur, D., Tripathi, A. (2014). Factors Influencing Customer’s Choice For Insurance Companies- A Study Of Ajmer City. IOSR Journal of Business and Management (IOSR-JBM), 16(2), 35-43, e -ISSN: 2278-487X, p-ISSN: 2319-7668.

Namasivayam, N., Ganesan, S., Rajendran, S. (2006). Socioeconomic Factors Influencing the Decision in Taking Life Insurance Policies, Insurance Chronicle, August, The Icfai University Press, 65-70.

Rajkumar, P., Kannan, N. (2014). Factors Affecting Customer's Preferences for Selection of Life Insurance Companies: An Empirical Study with Reference to Tamilnadu. International Journal of Accounting and Business Management (Online), 2(1), 19-27, ISSN: 2289-4519.

Ray, S., Ali, S. (2008). Gap Analysis Between Customer's Expectation and Current Provisions of Indian Life Insurance Industry, The Icfai University Journal of Consumer Behavior, III(3), 33-46, ISSN: 0973-3760.

Saaty, T. L., Kearns P. K. (1985). Analytical planning, The Organization of Systems. The Analytic Hierarchy Process Series, Vol. IV, RWS Publications, Pittsburgh.

Sipahi, S. Timor, M. (2010). The analytic hierarchy process and analytic network process: an overview of applications, Management Decision, 48(5), 775 – 808,

Subramanian, N., Ramanathan, R. (2012). A review of applications of Analytic Hierarchy Process in operations management, Int. J. Production Economics 138, 215–241,

Suneja, A., Sharma K. (2009). Factors influencing choice of life insurance company. LBS Journal of Management and Research, 7(1-2), 44-56.

Vaidya, O.S., Kumar, S. (2006). Analytic hierarchy process: An overview of applications, European Journal Of Operational Research 169(1), 1-29, DOI:10.1016/j.ejor.2004.04.028

Internet sources:

Insurance sector in Serbia, Third Quarter Report 2016,

Insurance sector in Serbia, Report 2013,


Copyright (c) 2017 Predrag Mimović, Milena Jakšić, Violeta Todorović

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.