ACORD’s 2021 Us Property & Casualty Value Creation Study Highlights Key Performance Drivers Over Twenty-year Period
PR Newswire
Pearl River, N.Y.,
Feb. 11, 2021 /PRNewswire/ -- ACORD, the global standards-setting body for the insurance industry, today released its 2021 US Property & Casualty (P&C) Value Creation Study, which measured and analyzed value creation among the top 100 US P&C insurance carriers over a 20-year period. The study leveraged in-depth financial analysis, data-driven research and interviews with industry leaders to answer key questions about carrier performance and the strategies and capabilities that support success.
The top 100 P&C insurers generated a total of
$446 billion in value over the 20 years studied, with ACORD analyzing the value created and destroyed through both underwriting and investment operations. The study 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" – those who generated excess cash flow through both underwriting and investment – in order to uncover the strategies, tactics, and capabilities that lead to high performance.