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...

Purpose – Risk management has grown increasingly popular in recent years due to the recognition that risk should be as actively managed as performance. A key objective of risk management is to evaluate performance in the context of the relative volatility in which business operations are...

Purpose – Many insurance companies vigorously pursue top‐line growth, even though it has the potential to develop unprofitably over time. The time lag (or tail) between when insurance is sold and when claims are paid generates risks unique to insurance companies. Furthermore, the insurance...