According to a recent ACORD study, a total of $466 billion has been generated by the world’s top 100 P&C insurers over a period of 20 years being studied.
The study leveraged in-depth financial analysis, data-driven research and interviews with industry leaders answering key questions about carrier performance and the strategies and capabilities that support success.
It found that more than half of value-creating insurers did so through investment income alone, depending on this revenue to offset poor underwriting results.
It then focused on the insurers identified as “Sustainable Value Creators” which are essentially insurers who has generated excess cash flow through both underwriting and investment.
They were focused on in order to uncover the strategies, tactics, and capabilities that lead to high performance.
Bill Pieroni, President & CEO of ACORD commented: “The twenty-year performance of the insurance industry as a whole speaks to its strength and economic importance. However, it’s not just a question of the bottom line on the income statement.
“Sustainable value creation is driven by core competence in underwriting and claims. Top-performing insurers increasingly leveraged digital capabilities to supported improved outcomes in these areas.”