PEARL RIVER, N.Y., Jan. 23, 2018 /PRNewswire/ -- ACORD, the global standards-setting body for the insurance industry, today announced a new study recognizing The MEMIC Group as the top workers' compensation company in the U.S. The ACORD Workers' Compensation Study and accompanying scorecard marks the first ever review of the $48 billion U.S. workers' compensation insurance market. The study is the first of its kind, segmenting carriers into value categories, analyzing criteria for success, and identifying winning strategies, tactics and capabilities.
Maine-based MEMIC, which generated $336 million in workers' compensation premiums in 2016, came out on top based on strong financial performance as well as measurable, superior capabilities in customer experience, employee satisfaction, and brand reputation. The Ohio-based Cincinnati Financial Corporation and New York's NYSIF ranked second and third among the companies.
"Congratulations to MEMIC for distinguishing itself as the top workers' compensation company in the U.S.," said Bill Pieroni, President and CEO of ACORD. "Given MEMIC's significant contribution to workers' compensation in Maine and their strong reputation in the insurance industry, it's admirable that they not only grew faster than the market but also had materially better financial performance. This is a first and we applaud everyone at their organization for their respective contributions."
"We are thrilled with this recognition, as it is a reflection of everyone at our organization who works incredibly hard to better serve our customers," said MEMIC President and CEO Michael P. Bourque. "I'm proud to share this with everyone at MEMIC, and we thank ACORD for this honor and distinction. I especially have to point out that this award is shared with our recently retired CEO John Leonard who led us during these years. He set the vision that puts us in the position we are today."
Bourque succeeded Leonard in September 2017. Leonard is a former chair of the board at ACORD.
The Workers' Compensation Study leveraged ACORD's U.S. Property & Casualty Value Creator Study and examined the top 50 workers' compensation writers in the U.S. These top 50 account for 85% of U.S. workers' compensation premiums. These insurers generate annual premiums ranging from $200 million to $4 billion. The results showed that top performing workers' compensation carriers simultaneously pursued four key strategies – operational efficiency, customer experience, product differentiation and innovation. Value creating carriers achieved superior performance through better than average underwriting expenses and lower than average claims costs.
Results of the Workers' Compensation Study, including additional analysis, will be released in a paper published later this year.
Methodology
The study focused only on those workers' compensation insurers that were both among the top 50 based on net premiums written and who were identified as Sustainable Value Creators in the broader P&C Value Creator Study. Sustainable Value Creators are defined as those carriers who generated value through both underwriting and investment activities. Each company was measured against a set of workers' compensation specific financial metrics on a both a national and state basis over a five-year period. Those companies that demonstrated superior financial performance where then analyzed along a number of attributes including social media metrics, customer reviews, employee sentiment, digital capabilities and market leadership. Companies were scored and ranked based on the results of the analysis with recognition awarded to the top carriers.
About ACORD's P&C Value Creation Study
ACORD's 2017 U.S. Property & Casualty Value Creation Study measured the amount of value created by the insurance industry over the last ten years. In particular, the study analyzed the strategic and tactical capabilities employed by carriers generating the highest levels of value. The study leveraged the annual financial filings of top U.S. property-casualty insurers, employing a proprietary methodology to determine the total amount of value generated by each carrier as well as identifying the source of value generated through both underwriting and investment activities.
The study, which demonstrated that the gap between value-producing carriers and value destroyers has grown dramatically, found that 84 percent of insurers created value, while 16 percent did not achieve minimum level of required value creation.
The study also showed that more than $230 billion in value was created during the ten-year span evaluated (2006 – 2016) in the U.S. Property & Casualty space, with those companies generating value (84) vastly outnumbering those who destroyed value (16). This represents a departure from previous editions of the study in which the number of value creating and destroying insurers was more evenly distributed.
About ACORD
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.
CONTACT: | Danielle Henbest-Levy | Tony Telloni |
dhenbest-levy@acord.org | tony@leoandpartners.com | |
845.535.6420 | 646.733.7745 |
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SOURCE ACORD
