05 The Pressure to Perform: Why Fix Surprisingly, data shows that Submissions Now? outperforming insurers do not always achieve their results through lean operations alone. According to recent analysis of AM Best data: The fact is, there is friction in all insurance processes. Whether it’s claims, billing, underwriting, submissions, accounting or operations in general. Just about every insurer out there has inefficiencies that are impacting 59% their profitability and ability to respond to the market. It’s impossible to attack it all at once. of insurers that have lower Instead, the object is to create an environment combined ratios than their of “continuous improvement”, where the competition have higher insurer is constantly making improvements to expense ratios but lower loss individual processes, leveraging tools and ratios. lessons learned to continually add to the transformation of the organization. Similar to getting in shape, it’s not done all at once, it takes time and it never ends. The workouts might change, the diet may continually be adjusted but to make gains and continue to stay in shape it takes a change in lifestyle and that is the path the industry is on right now, a lifestyle change. ONLY The submission process — the engine for underwriting and new business — has a 22% tremendous amount of friction in it. This is of outperformers manage to especially true for commercial lines property, achieve both lower expense ratios casualty and group life business. The best place to watch this play out is the critical role and lower loss ratios. submission plays in driving both expense and loss ratios (while life insurance doesn’t leverage the combined ratio the same way that property casualty does, the same issues trends play out in a similar way). CIOs, COOs, and other insurance leaders know this: a smoother, faster submission process leads to better results across the board. © 2025 PS Advisory. All rights reserved