| TITOLO | Profitable Growth in Insurance Driven by Time-on-Book |
| PUBBLICAZIONE | MIB Trieste - Research Note |
| AREA | Insurance |
| DATA | Maggio 2024 |
| AUTORE | Leonardo Felician |
| DOI | 10.69123/mib.012024 |
This research note introduces a self-predictive model for estimating the profitability of a Property&Casualty (P&C) motor insurance business over time, depending on the choices made by management.
The most commonly used key performance indicator (KPI) for a P&C insurance company's balance sheet, i.e. the Combined Ratio in the actual year (CoR), inaccurately evaluates growth quality and masks its critical drivers.
Financial analysts and top management in the P&C insurance industry often weigh the tradeoff between growth and profitability. The central question is whether growth is profitable and, if so, under what circumstances it becomes unprofitable. Achieving the optimal tradeoff requires objective analysis, reliable business plans, clear expectations, open communication, and precise control.
The simplified model proposed in this article helps to clarify and decide between different alternatives.
Questa Reasearch Note è pubblicata da MIB Trieste School of Management.
Copyright © 2024 by Leonardo Felician
All rights reserved
APRI LA RICERCA COMPLETA
The most commonly used key performance indicator (KPI) for a P&C insurance company's balance sheet, i.e. the Combined Ratio in the actual year (CoR), inaccurately evaluates growth quality and masks its critical drivers.
Financial analysts and top management in the P&C insurance industry often weigh the tradeoff between growth and profitability. The central question is whether growth is profitable and, if so, under what circumstances it becomes unprofitable. Achieving the optimal tradeoff requires objective analysis, reliable business plans, clear expectations, open communication, and precise control.
The simplified model proposed in this article helps to clarify and decide between different alternatives.
Questa Reasearch Note è pubblicata da MIB Trieste School of Management.
Copyright © 2024 by Leonardo Felician
All rights reserved
APRI LA RICERCA COMPLETA
Leonardo Felician
With a long insurance experience as top manager in insurance companies, Leonardo Felician is the founder, CEO and "guru" of Direct Motor Insurance in Italy. Passionate for profitable growth and serving Customers, winner of several Customer Satisfaction Awards, he is a restless, rebel and disruptive innovator.
He is Professor of Data Analytics for Finance and Insurance, and he is author of several textbooks on insurance and IT, hundreds of articles about IT, Insurance and Management. He is also a keynote speaker in international conferences, with experience in a dozen different countries and five languages.
