Novin Insurance Company's product diversification strategies using product space theory

Subject Areas : Industrial Management

َAnvar khosravi ¹

1 - Department of Economics, ُ Sanandaj Branch, Islamic Azad University, Sanandaj, Iran

Received: 2022-11-21 Accepted : 2023-08-28 Published : 2023-08-23

Keywords: product space, insurance products, Insurance, Competitiveness, modern insurance,

Abstract :

Insurance industry in iran is a competitive industry and is of particular importance for companies operating in this industry . one of the competitiveness strategies is diversifying the supply of insurance products . diversification of products is one of the main solutions to increase income , profitability and reduce risk . the purpose of this paper is to identify the products that the new insurance company is exposed to comparative advantage or the relative advantage is hidden . the research is done using the mean of data related to the production right of each product during 2016 to 1398 but using the theory of product space and network science . the results of this study showed that the new insurance company has revealed relative advantage ( active ) among 16 insurance products examined in the supply of six products with obvious comparative advantage ( active ) , seven products have partial ( potentially active ) advantages and in supply of three inactive residual products and the probability of activation equal to zero . in the following , the sequence of seven crops with latent relative advantage was determined based on maximum , greedy , high and low grade strategies . finally Borda method were identified as the four strategy of combining and the activation sequence of products with the potential for activation of the new insurance company on the basis of this hybrid strategy of engineering , oil and energy , other aircraft , driver events and third parties .

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