ACORD CEO Bill Pieroni Presents New Flagship Study: "Global Insurance Growth & Value Pools: Implications & Imperatives" at ACORD Industry First

Study analyzes over 11,000 carriers across 100 countries to determine how country-specific factors influence strategies, tactics, and outcomes

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ACORD

Nov 17, 2021, 09:00 ET

PEARL RIVER, N.Y., Nov. 17, 2021 /PRNewswire/ -- ACORD CEO Bill Pieroni presented ACORD's 2021 flagship study "Global Insurance Growth & Value Pools: Implications & Imperatives" at ACORD Industry First, a conference for senior industry leaders at the intersection of insurance and technology. This virtual conference featured presentations recorded live at the Maurice R. Greenberg School of Risk Management, Insurance, and Actuarial Science at St. John's University.

In this first-of-its-kind study, ACORD analyzed over 11,000 carriers across 100 countries to determine how premium growth and value are distributed globally, and how country-specific factors influence expansion strategies, tactics, and outcomes. For each of the 100 countries, ACORD analyzed a variety of factors including demographics (e.g. population age, per capita wealth), assets (e.g. auto & home ownership, average business size), market (e.g. premiums written, distribution channels), and outcomes (e.g. profitability, underwriting & total loss expenses). The study provides insight into the increasing globalization and interdependence of insurance markets, as carriers look to international expansion to pursue growth and profit.

"Counterintuitively, the study uncovered the fact that mature markets represent the majority of not only historical value, but also future growth and value potential," Pieroni said. "Carriers exploring entry into emerging markets should be extremely thoughtful in evaluating the opportunity, and corresponding strategy and required operating model."

"As carriers seek to explore new value-creating opportunities, they need to understand the uniqueness of each country at a granular level, irrespective of market maturity," Pieroni continued. "Each is influenced by different buying preferences, demographics, regulatory requirements, and other factors. Insurers cannot simply import operating models that have worked for them in other markets and expect success."

Pieroni highlighted the most common themes associated with successful performance across markets:

Digitization – Deploying capabilities aligned with strategic intent. This means more than just spending on IT; a successful approach requires aligning process with technology, strategy, and culture across the enterprise.

Channel – Aligning distribution and value opportunities. Pieroni emphasized the need for carriers to have a clear strategy based on distribution preferences in targeted regions. Globally, the independent agent continues to be the top channel, accounting for 46 percent of all premium dollars; however, some markets demonstrate very different customer preferences.

Talent – Acquiring, developing, and retaining talent. Pieroni noted that the insurance industry has not been attracting the "high-skill/high-will" talent it needs. Developing the next generation of talent must be a top priority for insurance stakeholders that want to succeed in any market.

ACORD's proprietary analysis included comprehensive data on all 100 insurance markets studied, over a ten-year period. More details on this and other ACORD studies are available to ACORD members upon request. See www.acord.org/research for more information.

About ACORD Industry First

ACORD Industry First is an exclusive event that brings together senior industry leaders at the intersection of insurance and technology, featuring first-of-its-kind research and thought leadership. Attendees collaborate with the industry's top minds in discussing emerging trends, and the strategies, tactics, and capabilities that will best position organizations to succeed in today's rapidly evolving market.

CONTACT: Beth Jarecki
[email protected]

SOURCE ACORD