PEARL RIVER, N.Y., Oct. 20, 2020 /PRNewswire/ — ACORD CEO Bill Pieroni today presented a new study, Distribution & Digitization: The Broker & Agent Imperative, at ACORD Industry First. This marked the debut of the event, a new conference for senior industry leaders at the intersection of insurance and technology.
The new study, sponsored by Stone Point Capital and developed by ACORD, the global standards-setting body for the insurance industry, examines the landscape of distribution across the global insurance industry and the implications on strategies and operating models. The study focuses on the evolution of the distribution options available to global carriers and the investments required for success within and across channels.
Based on 10 years of financial and operating performance metrics for more than 12,000 property & casualty, life and multi-line insurance carriers across 94 countries, the study focuses on distribution trends of 1,115 carriers identified as «Intelligent Growth» carriers, having achieved both value creation and growth—outperforming their peers both in financial performance and market share increase.
In his keynote address, Pieroni explained that brokers and agents drive significant value for the industry’s most successful carriers. Nearly a full 3/4 of Intelligent Growth P&C and Life Insurance carriers use brokers and agents, illustrating the importance of this channel for success. For carriers seeking to grow profitably, brokers and agents represent by far the majority of Intelligent Growth premium; 62% of all P&C premium and 78% of life insurance premium came from brokers and agents, clearly demonstrating the value of this channel.
From a shareholder value creation standpoint, and from an ability to grow and simultaneously generate superior results, the study data reveals that brokers and agents are a key driver of success. Over the 10 years studied, Intelligent Growth carriers dramatically outperformed most publicly traded indices globally. Within that group, broker and agent-based writers more than tripled their shareholder return within the time period studied—a material indication that brokers and agents drive value for shareholders.
«Clearly agent and broker relationships are core to our industry’s value proposition, and winning carriers are investing in those relationships by providing technology, training, and tools,» said Pieroni.
Pieroni explained that digitization is key to the future of insurance, but that new technologies and tools alone will not solidify relationships and drive growth—they must be properly deployed with the right colleagues. «Insurance is a people business; technology is important, but equally so is ensuring that carriers attract high-skill, high-will talent. We see that this in turn attracts top agents and brokers, who ultimately attract loyal customers,» said Pieroni.
ACORD is committed to providing industry leading and actionable R&D on behalf of its members. The full published report will be released to members in a white paper in early 2021. For more information, see www.acord.org/research.
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.
ACORD (Association for Cooperative Operations Research and Development) is the global standards-setting body for the insurance industry. ACORD facilitates fast, accurate data exchange, and efficient workflows through the development of electronic standards, standardized forms, and tools to support their use. ACORD members worldwide include hundreds of insurance and reinsurance companies, agents and brokers, software providers, financial services organizations and industry associations. ACORD maintains offices in New York and London. Learn more at www.acord.org.
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