Summary of The Pandemic Puts a New Premium on Performance

Looking for the article?
We have the summary! Get the key insights in just 5 minutes.

The Pandemic Puts a New Premium on Performance summary

Editorial Rating



  • Analytical
  • Overview
  • Visionary


COVID-19 has not been kind to the insurance industry. In fact, it’s one of the hardest-hit industries of all, but some insurance companies have withstood the crisis and even thrived. This special report from the Boston Consulting Group reveals the differences between top-quartile companies, and those that are floundering, with some vital suggestions for making it through the pandemic and coming out better on the other side.

About the Authors

Davide Corradi and Eric Wick are professionals with the Boston Consulting Group, and Thomas Seidl is a BCG alumnus, now head of group portfolio management at Allianz.


The spread in total shareholder return (TSR) between top-quartile insurers and median to lower-quartile insurers is growing.

Over the five years previous to 2019, insurers generated an average TSR of 8.2%, underperforming by 1.4% when compared to the total market. The top-quartile performers achieved 20% TSR annually over the past 5 years, however, representing a substantial spread between top and even median and lower-quartile companies. It appears that multiple expansion and book value growth has made the difference. 

COVID-19 has made tough times even tougher for many insurers, and the insurance landscape is unlikely to improve. Investment-dependent industries are hampered by slashed interest rates; credit spreads and equity markets have plummeted, turning asset leverage into liability. Insurers must double down on performance to withstand the storm...

Comment on this summary

More on this topic

By the same authors

Reinvention Paves the Way to a Bright Future
The 2019 Value Creators Rankings
Ten Lessons from 20 Years of Value Creation Insights
The Impact of US Tax Reform on Corporate Strategy and M&A
Creating Value in Insurance M&A
Digital Powers Value Creation in Oil and Gas
The Building Blocks of Bionic Distribution in Insurance
What Lies Beyond Digital for Insurance Operations?
The Bionic Company
Crisis Can Spark Transformation and Renewal
The Power of the Internet of Things in Commercial Insurance

Related Channels