Global body reports on insurers' stock performance

Global body reports on insurers’ stock performance | Insurance Business New Zealand

Insurance News

Global body reports on insurers’ stock performance

Standards-setting body tracks performance of world’s largest publicly traded insurance companies

Insurance News

By
Ryan Smith

ACORD, the standards-setting body for the global insurance industry, has released the results of 2023’s first ACORD Global Stock Index Update.

The ACORD Global Insurance Stock Index tracks the performance of the world’s largest publicly traded insurance carriers in both the life and non-life sectors. The latest update includes a new metric that assesses insurer stock performance relative to digital maturity.

The update revealed a positive year-over-year return of +2.9% for the insurance industry, contrasted with a -9.1% decline in the global equity market.

The reinsurance sector posted record-high performance with a total return of +23.6%, likely spurred by strong premium and exposure growth, improved underwriting results, robust investment gains, and additional operating leverage.

Other lines of business, including property-casualty, multi-line and life, also saw above-average returns, ACORD reported.

For ACORD’s new metric, insurers were divided into five categories based on their digital maturity, ranging from the most digitally mature (“Digital Competitors”) to least digitally mature (“Digital Laggards”). The stock index results support the results of the annual ACORD Insurance Digital Maturity Study, with Digital Competitors showing year-over-year returns averaging +7.4% – significantly outperforming all other segments and doubling the average of just over 3%.

“The strong performance of the insurance industry in the first quarter of 2023 is a testament to the industry’s tremendous resiliency – and digitalisation continues to play a crucial role,” said Bill Pieroni, ACORD president and CEO. “The results further validate the need for insurance stakeholders to embrace the digitalization imperative so that they can better navigate the ongoing changes and opportunities in the global market.”

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