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Beth Jarecki

Dec 15, 2022

ACORD’s 2022 U.S. Property & Casualty Value Creation Study Highlights Key Drivers of High Performance Among Top Insurers

Latest Research Underscores Importance of Digitalization, Core Operations to Success

Pearl River, NY, December 15, 2022 – ACORD, the global standards-setting body for the insurance industry, today released its 2022 U.S. Property & Casualty Value Creation Study, which measures and analyzes value creation among the top 100 U.S. P&C insurance carriers over a twenty-year period. The study leveraged in-depth financial analysis, data-driven research, and interviews with industry leaders to assess carrier performance and the strategies that support success.

ACORD analyzed the 100 largest U.S. P&C insurers and the value they created or destroyed through both underwriting and investment, with the total value created by the top 100 over the study period totaling $182 billion. Carriers were then segmented into three categories based on their performance: Sustainable Value Creators exceeded the benchmark of required returns through both underwriting and investment activities; Hollow Value Creators met required returns through their investments but failed to generate value through underwriting; and Value Destroyers failed to generate sufficient value over the study period. Each group was further assessed to identify the strategies, tactics, and capabilities that lead to high performance.

“We see an increased emphasis on modernization, with the critical role of digitalization clearly understood across the industry,” said ACORD President & CEO Bill Pieroni. “The COVID pandemic, and the resulting necessity for digitally mediated interactions, made even the most ardent digital skeptics accept the importance of digital capabilities. However, this also means that the bar is continually being raised for digitally mature carriers to stay ahead in performance metrics.”

The updated study contains data and insights current as of this year. Key insights from the 2022 edition of the U.S. Property & Casualty Value Creation Study include:

  • Advantages of scale: While scale and scope economies tend to be elusive across the global insurance market in general, ACORD’s research did find that the largest carriers tended to generate more sustainable value in the U.S. P&C market. This is likely the result of being able to devote resources to consistent development and renewal of digital capabilities over the long term.
  • Importance of talent: Sustainable Value Creators are clearly winning the “war for talent,” a critical issue facing our industry. Insurers classified as Sustainable Value Creators, on average, had the highest levels of employee retention and satisfaction in the study. Moreover, colleagues at Sustainable Value Creators had the highest levels of productivity and corresponding value creation.
  • Unsustainability of relying on investment: Lower investment returns over the past several months, compared to the average over the twenty-year period studied, impacted value generation across the industry. In a reversal over previous years, Sustainable Value Creators generated more value through underwriting than through investment. Many previous Hollow Value Creators failed to generate adequate value, and sank into the Value Destroyer category.

“These results highlight the risk of relying on investment returns to offset underwriting losses,” Pieroni continued. “In this year’s study, we saw the vulnerability of Hollow Value Creators to market fluctuations. This inevitable volatility of investment returns illustrates the peril of relying solely on investment-based value creation — it is not sustainable. It is necessary to generate value through underwriting as well.”

The full 2022 U.S. Property & Casualty Value Creation Study is free to download for ACORD members. For more information or to download the white paper, please visit