Peter M. Wells Business Group
September 1, 2017; Milwaukee, WI;
Significant EARNINGS Upside : Immediately Available in Otherwise Down Commercial Insurance Market.
New research from Peter M. Wells Business Group shows all forms of Business Interruption Insurance are dramatically undervalued and correcting this problem has the potential to deliver amazing earnings upside for property insurers that can positively drive earnings for the next ten years. Getting values right is not as hard as carriers once thought using new data innovations and cloud-based Insurance to Value Technology (ITV). With very little effort, process change or impact on retention, commercial property writers tackle the problem the Wells Group uncovered. . .
68% of business interruption policies are undervalued by 56%
In studies involving large numbers of BOP and Non-BOP commercial property policies, using very minimal changes in rating and coupled with fresh insights on adequate policy limits, the insurance industry is benefiting from a new source of non-traditional income – BII Insurance to Value. The very positive financial result that occurs drops immediately to the bottom line, is totally sustainable and generates a broader market than exists today. Implementing self-driven valuation tools for BII coverage is an area of the commercial property insurance business widely overlooked. And, given the degree of underinsurance, and the fact that improvement is relatively simple to achieve, the overall impact of getting values right is immediate and can generate over $15 billion in otherwise lost revenues annually.