Efficiency

gjhesq · Post by **gjhesq** » Tue Mar 16, 2004 12:21 pm

I would like to know if there is any interest in ratings of insurer efficiency. The ratings would measure the relative efficiency of insurer management of underwriting and claims operations. The measures would be completely objective, but would accurately reflect the efficiency or inefficiency of each insurer.

FiniteReUnderwriter · Post by **FiniteReUnderwriter** » Thu Mar 18, 2004 2:28 pm

I'm curious - what "efficiency" measures do you have in mind, other than those trade ratios that are already available based on analysis of the company's financial statements (e.g., loss ratio, loss expense ratio, other underwriting expense ratio. premium to surplus ratio, reserves to surplus ratio, return on surplus, etc.)?

Or are you looking for "softer", operational issues such as speed of policy issuance, or claim payments, number of disputed claims, etc.? This would likely be partially reflected in their policy renewal retention rates - how often customers renew their coverages (but clearly heavily influenced by pricing).

gjhesq · Post by **gjhesq** » Sat Mar 20, 2004 12:47 pm

The efficiency measures that I am referring to are based on the industry trade ratios, but differ from them significantly in that I have been able to use them to identify efficiency frontiers for core insurance operations based on the performance of all companies in the industry.

The efficiency frontiers are therefore hard measure benchmarks for operational efficiency in underwriting and claims management. They are completely objective and based on publicly available data.

I am looking to see if there is sufficient interest in such measures for me to begin a business to distribute them.