Swiss Re report slams combined ratio
A study has claimed that insurers' received wisdom regarding the use of the combined ratio as a measure of profitability is flawed and that it should be replaced. According to Swiss Re’s latest sigma study, over the last decade the contribution of underwriting to overall profitability was small, and non-life insurers faced difficulties in earning their cost of capital.
The report explained how sound technical underwriting has become a prerequisite for overall profitability in the current low-yield financial environment. As a result, the combined ratio has received
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