ACORD CEO Bill Pieroni spoke with Best’s Review about increasing efficiencies and reducing expenses across the insurance ecosystem. A new report from AM Best found that the industry has made significant progress in recent years, particularly in decreasing its average underwriting expense ratio.
Technology is playing a key role in improving insurer efficiency. Bill highlighted the findings of ACORD's U.S. Property & Casualty Value Creation Study, noting the importance of consistently and thoughtfully integrating new capabilities to help streamline processes and lower costs.
“What we’ve found and seen over the last several years is that the sustainable value carriers are able to have a lower-than-average loss adjustment expense and a lower-than-average pure loss ratio,” Pieroni said. “How? You’re underwriting better. You’re also using technology and getting operating leverage.”
Read more about the interview and AM Best’s report.