New Indices for Fuzzy Decision Making of Insurance Pricing

The financial approach views insurance policies as financial instruments analogous to corporate bonds and prices insurance policies as financial assets, that is, according to an asset-pricing theory or to arbitrage principles. Ranking fuzzy number is one of the most useful tools in insurance pricing and some other fuzzy application systems like financial mathematics, decision making, pattern recognition and etc. Many strategies have been proposed for insurance. Each of these techniques has been shown to produce non-intuitive results in certain cases.In this paper, first we review on some highly cited ranking fuzzy numbers methods, then we present a novel ranking fuzzy numbers, which is far simple, and easier than previous methods. Finally, some numerical examples illustrate the presented method as well as comparing it with other various ones.

Keywords:

Fuzzy Set Theory (FST) , Financial Mathematics , Ranking , Insurance , Decision Makings.