06 CHART PLACEHOLDER With the right approach and technology, insurers can reduce their expense ratios without compromising results. This may be a surprise, most people Insurers often solve would guess that the majority of insurers problems or improve that beat the combined ratio for their results by "throwing segment would fall into the “Lower bodies” at the Expense Ratio, Lower Loss Ratio” category but this is not the case. problem. These numbers illustrate a crucial point: Insurers often solve problems or improve results by "throwing bodies” at the problem. Whenever insurers have wanted to improve customer service, reduce processing times, improve service to agents, address claims issues or improve underwriting results the traditional approach has been to add more people to the mix. This approach raises the expense ratio but also generally has the (not guaranteed) effect of lowering the loss ratio. With modern tools like AI and Salesforce’s insurance solutions, CIOs can now improve both expense ratios and loss ratios by eliminating friction. © 2025 PS Advisory. All rights reserved