Marketing-Based Management: The Semi-Hidden Real Performance of Insurance Companies in Iran Insurance Industry

Document Type : Original Article

Authors
Hadi Abdollahi 1
Kambiz Shahroodi 2
Seyed Mahmoud Shabgoo Monsef 2
Yalda Rahmati 2
1 Ph.D Student in Business Administration, Bandar Anzali International Branch, Islamic Azad University, Bandar Anzali, Iran.
2 Faculty of Management and Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran.
10.30495/jik.2024.55177.3144
Abstract
By investigating the performance evaluation systems of insurance companies in Iran insurance industry, it is simply implied that, the most important indicators used to judge their performance are derived from traditional accounting systems and the emphasis is on the items reported in the profit and loss statements and balance sheets. The main problem with this approach is that it mainly focuses on financial indicators, and large and corporate insurers, as well as individual insurers, have no place in the balance sheets and profit and loss statements of insurance companies. This means that at best, about 50% of the company's performance is taken into account, and the second half, which indicates the market-based indicators and criteria, are not taken into account in measuring the actual performance of insurance companies. This will lead to lack of clear understanding of market potentials and not considering the other key forces and drivers that can increase the performance by another 50%. Therefore, in this article, in addition to identifying the gap in evaluating the performance of insurance companies in the Iranian insurance industry, marketing-based performance is also examined and analyzed, and it ultimately leads to providing a conceptual model to measure the marketing-based performance of insurance companies. The present article is the first part of a research work that emphasizes on the theoretical concepts of the main problem. The second part of the article, which will be written in the future, will focus on practical topics and real-time testing based on data from insurance companies.
Keywords
Market-Based Performance
Traditional Accounting Systems
Marketing-Based Indicators
Insurance Company Performance
Traditional Indicators of Performance Evaluation
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