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Reinvention Paves the Way to a Bright Future
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Reinvention Paves the Way to a Bright Future

The 2021 Insurance Value Creators Report

Nathalia Bellizia, Davide Corradi, Eric Wick and Edoardo Palmisani
Boston Consulting Group, 2021
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Editorial Rating

8

Qualities

  • Applicable
  • Overview
  • Concrete Examples

Recommendation

This isn’t where insurers wanted to be at the outset of the 2020s: Total Shareholder Return (TSR) has been hovering around an average of 5%, and interest rates are painfully low in developed markets. But it hasn’t been that bad for everyone. Insurers in the top quartile supplied TSRs about triple the industry median. In this overview of the 2021 Insurance Value Creators Report, the Boston Consulting Group provides an idea of what differentiates the top-quartile performers, and how your company might take steps to be among them.

Take-Aways

  • Total Shareholder Return (TSR) for the insurance industry has been dropping since 2016; concerned insurers should take steps to embrace digital technologies.
  • Top performers include 4 archetypes: the “Data Analytics Standard-bearer,” the “Ecosystem Player,” the “Diversified Cash Generator,” and the “Capital-Light Product Developer.”
  • To succeed beyond 2021, insurers need to embrace digital tools, M&A, portfolio risk, and Environmental, Social and Governance (ESG) initiatives.

About the Authors

Nathalia Bellizia, Davide Corradi, Eric Wick, and Edoardo Palmisani are professionals with the Boston Consulting Group.

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