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Value Creators in Insurance

BCG’s annual insurance value creators report explores the distinctive drivers of sustained value creation in each sector of the global insurance industry, and the winners who have overcome insurance industry challenges.

What separates the leaders from the laggards when it comes to value creators in insurance? Profitable growth and total shareholder return (TSR) are the keys to success. Since 2017, BCG has looked at TSRs on a rolling five-year basis, revealing the insurance industry’s recent record on shareholder return and the outlook for improving performance in the current and medium-term environments.

Our insurance industry reports present research-backed recommendations for growth and transformation, best practices from insurers across sectors and geographies, and success stories from companies that have adapted to meet global insurance industry challenges. Years of research have borne out that every company can find a path to value creation in insurance. However, success depends on having a clear strategy rooted in the reality of a company’s particular circumstance, and a willingness to take decisive, bold action.


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Report Methodology: The Powerful Role of TSR in Insurance

TSR provides an important guiding metric for insurance industry analysis. In insurance, TSR derives from three sources: growth in tangible book value, change in the price to tangible book value multiple (P/TBV), and cash flow contribution (comprising dividend yield and share buybacks).

TSR has no memory—what worked yesterday will not necessarily be successful tomorrow. The winners will be those insurance companies that align planning, KPIs, and incentives with delivering sustained TSR and total societal impact (TSI). This means putting TSR front and center, setting targets, pressure testing plans and initiatives, allocating resources, and tracking performance through TSR and TSI lenses.

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The Value Creators Report Collection

The insurance value creators report is part of BCG’s value creators collection. Explore 25 years of value creation in all industries and perspectives on value creation trends.

BCG’s Insurance Value Creators Report Team