Assembling the Puzzle: The Insurance Performance Measure
PMA Conference Proceedings, pp. 651-658, July 2002
Posted: 21 Nov 2006
The property and casualty insurance industry has historically focused on the underwriting or combined ratio as the measure of performance. Many dramatic changes have occurred in the industry and its operating environment over the past 30 years, however. These changes may have altered some of the assumptions regarding the use of the underwriting ratio. An alternative performance measurement system, the Insurance Performance Measure, is presented and illustrated.
Keywords: insurance, economic profit, value based management
JEL Classification: G22, G30, M21
Suggested Citation: Suggested Citation