Insurance companies focus on total shareholder return as a performance metric. This narrow definition of success is increasingly out of step on matters relating to investors, regulators, consumers, and employees. To that end, Bain & Company has devised multidimensional benchmarks of the 100 largest insurers globally. We found that of those, 37 ranked among the top 25 on one dimension; however, as the chart shows, only a few led along three or four dimensions.
Excelling in one dimension often has a positive effect on another. For example, environmental, sustainability, and governance (ESG) efforts appeal to many young, affluent customers. To improve their standing, insurers should define a strategic roadmap for each stakeholder group. They could accelerate their transition to net-zero carbon emissions, strengthen corporate governance and social efforts, innovate to develop a more convenient and personalized experience for customers, and adopt attractive new ways of working.
Read the Bain infographic: Insurers May Miss the Nuances of Consumer Views on ESG