The property and casualty (P&C) insurance industry has historically focused on the underwriting or combined 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, which have reduced the...

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...