The Insurance Performance Measure: Assembling the Property & Casualty Profitability Puzzle

Management Decision, Vol. 41, No. 8, pp. 734-740, 2003

Posted: 27 Jun 2006

See all articles by Joseph Calandro, Jr.

Joseph Calandro, Jr.

Fordham University - Gabelli Center for Global Security Analysis

Scott Lane

Quinnipiac University; Quinnipiac University

Abstract

The property and casualty insurance industry has historically focused on the underwriting or combined ratio as the primary measure of operating performance. Many dramatic changes have occurred in this industry and its operating environment over the past thirty years, which have moderated the importance of the underwriting ratio. An alternative performance measurement system, the Insurance Performance Measure (IPM), is presented and illustrated. The IPM integrates all areas P&C operating activity into a measure more comprehensive (and economic) that the underwriting ratio.

Keywords: insurance, economic profit, value based management

JEL Classification: G22, G30, M21

Suggested Citation

Calandro, Jr., Joseph and Lane, Scott, The Insurance Performance Measure: Assembling the Property & Casualty Profitability Puzzle. Management Decision, Vol. 41, No. 8, pp. 734-740, 2003. Available at SSRN: https://ssrn.com/abstract=911965

Joseph Calandro, Jr. (Contact Author)

Fordham University - Gabelli Center for Global Security Analysis ( email )

531 Hughes Hall
441 E. Fordham Rd
Bronx, NY 10458
United States

HOME PAGE: http://www.linkedin.com/in/josephcalandro/

Scott Lane

Quinnipiac University ( email )

Mount Carmel Ave
Hamden, CT
United States
(203) 582-8367 (Phone)

Quinnipiac University ( email )

United States
2035828367 (Phone)
2035828367 (Fax)

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