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Best's Review Looks Closely at Insurance Expense Efficiency

In a new article, Best’s Review speaks with industry experts about the challenges of reducing the expense ratio. According to Bill Pieroni, president and chief executive officer for ACORD, “What we’ve found and seen over the last several years is that the sustainable value carriers are able to have a lower-than-average loss adjustment expense and a lower-than-average pure loss ratio.”

A new Best’s Special Report notes some improvement, as the industry’s average underwriting expense ratio decreased to 26.3% in 2021 from 28.0% in 2011, and the net general expense ratio declined to 6.5% in 2021 from 7.1% in 2011. Read the full story, “Insurers Find Ways to Decrease the Underwriting Expense Ratio.”

Best’s Review is AM Best’s monthly insurance magazine, covering emerging issues and trends and evaluating their impact on the marketplace. The complete content of Best’s Review is available here.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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