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Why the property and casualty insurance industry needs a new performance measure

Joseph Calandro (Joseph Calandro, Jr. has 18 years of experience in the P&C insurance industry. He is currently a second vice president of the General Star Management Company subsidiary of Berkshire Hathaway, and a part‐time professor of finance at the University of Connecticut. He received an executive MBA at the University of New Haven, and executive training at Harvard Business School and Columbia Business School. His first article, co‐authored with Scott Lane, was published in the Journal of Applied Corporate Finance. Contact him at jtacalandro@prodigy.net)
Scott Lane (Scott Lane had six years experience in public accounting and five years as a corporate controller before earning his doctorate at the University of Kentucky. Scott is now an assistant professor of accounting at the University of New Haven, Connecticut. His interests are in performance measurement, organizational control systems and knowledge management. Contact him at slane@newhaven.edu)

Measuring Business Excellence

ISSN: 1368-3047

Article publication date: 1 June 2004

1462

Abstract

The property and casualty insurance industry has historically focused on the underwriting ratio as the primary measure of operating performance. Many dramatic changes have occurred in this industry and its operating environment over the past 30 years. These changes have dramatically decreased opportunities for underwriting profits, forcing the industry to rely more on investment returns and careful reinsurance. An alternative performance measurement system, the insurance performance measure (IPM), is presented and illustrated. The IPM integrates these other areas of operating activity into a more comprehensive measure of profitability.

Keywords

Citation

Calandro, J. and Lane, S. (2004), "Why the property and casualty insurance industry needs a new performance measure", Measuring Business Excellence, Vol. 8 No. 2, pp. 31-39. https://doi.org/10.1108/13683040410539418

Publisher

:

Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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