Industry Issues | ERM & Emerging Risks

ERM & Emerging Risks

APCIA Establishes Forum on Emerging Insurance Risks, Opportunities and Issues impacting Enterprise Risk Management

Chief risk officers and other high-level risk managers at insurance companies are facing a broad range of emerging issues that could significantly impact the insurance enterprise and possibly the industry. Recognizing the growing importance of the insurer's risk management process and strategy, APCIA established a new member committee as a forum where those with primary responsibility for overseeing emerging risks can garner a better understanding of the key challenges and opportunities ahead.

The committee will address multi-faceted, emerging risks and opportunities such as cyber and the internet of things, autonomous vehicle technologies, legalization of marijuana, opioid usage trends, changes to insurance capital standards and other emerging enterprise risk management topics. This web page will offer related information, webcasts, publications and other resources.

For questions about the APCIA ERM & Emerging Risks Committee or other related matters, please contact David Kodama, assistant vice president, research.

Latest News | View all

Emerging Risk – Global Risks
Environmental and Cybersecurity Risks are top concerns in World Economic Forum Global Risks Report.

Emerging Risk – Rating Agencies
A.M. Best benchmarking review highlights insurers' ERM capabilities; reports most companies remain strongly capitalized and able to demonstrate patterns of stability.

Emerging Risk – Climate Change
California insurance commissioner appoints deputy commissioner of climate and sustainability; CDI releases analysis of climate risk exposure of insurers' investments released.

Emerging Risk – Climate Change
New California Insurance Commissioner, Ricardo Lara, pledges to confront climate-fueled wildfires, fight fraud, expand health care. CDI releases new report and analysis as part of Climate Risk Carbon Initiative.

Emerging Risk - Autonomous Vehicles
January 2019 summary of recent legislative and regulatory activity at the state and federal levels as well as "news and notes" links to studies and articles related to the increasing automation of the driving function.

APCIA Survey

APCIA News

APCIA Report: P/C Insurers Report $4.7B Net Underwriting Gain in Nine-Months 2018
U.S. property/casualty insurers reported $4.7B net underwriting gain in 9-months 2018, a sharp turnaround from a $21.0B net underwriting loss a year earlier, helped by a rare decline in overall losses and loss adjustment expenses and significant premium growth.

APCIA Webinar: FS-ISAC Cyber Threat Update, February 1, 1pm CT
Experts from the Financial Services Information Sharing and Analysis Center (FS-ISAC) will brief APCI members on cyber threats, adversaries, and the FS-ISAC's role in information sharing, analysis best practices, and exercises.

American Insurance Association and Property Casualty Insurers Association of America Announce Merger Agreement
The memberships of the American Insurance Association and Property Casualty Insurers Association of America announced that the respective memberships approved a merger and starting January 1, 2019, the new organization will be called the American Property Casualty Insurance Association (APCIA).

PCI Webinar: Marijuana/Cannabis - Webinar Recording and Slides
On December 14, 2018, PCI hosted a webinar entitled, Growing Like a Weed: Marijuana Normalization and Its Discontents. A recording of the webinar and a copy of the slides are now available for member review.

ERM & Emerging Risks Committee: 2018-May 10, Meeting
Committee members met in-person in Chicago on May 10, 2018. The approved meeting minutes and associated presentation materials are attached to the PCI bulletin.

Industry Events

Dig|In: The Digital Future of Insurance, May 29-31, 2019, Austin, TX
Keynote speakers from the industry's disruptors; Presentations from industry players leading the way with digital strategy: and, live demos from a curated list of the industry's most progressive technology companies. APCIA members use promo code PCIAA200.

APCIA: 2019 National Flood Conference, June 2 - 5, Washington, D.C.
This forum will offer an agenda with separate tracks for Claims/Legal; Lenders/Agents; Marketing/Training; and, Underwriting.

NAIC CIPR Webinar: InsurTech: Technology and Innovation in the Insurance Sector - REPLAY
A presentation was heard on the current InsurTech landscape, including business models and the future direction of the market. A panel discussion followed that examined steps the NAIC and state insurance departments have taken to foster innovation and lessons learned from startups working with state insurance regulators.

NAIC: Fall National Meeting, San Francisco, November 15-18 - Wrap-Up Report
This bulletin provides PCI’s wrap-up of the NAIC Fall meeting, including the results of the 2019 officer elections.

A.M. Best: "Cyber Insurance Market: Stress Testing the Future" – Webinar Replay
Analysts from A.M. Best and modeling experts from Guidewire Cyence Risk Analytics review a new report on insurers’ modeled exposure to cyber-related losses.

Federal/National International 

APCIA files comments responding to the NAIC Group Capital Calculation (E) Working Group's proposed Field Testing Template and Instructions

FSOC Releases Annual Report, Discusses Activities-Based Systemic Risk Framework
The federal Financial Stability Oversight Council discussed a potential activities-based approach for monitoring and addressing potential risks to U.S. financial stability, and released its 2018 annual report.

NAIC: Report on Profitability by Line by State in 2017
The report estimates and allocates profitability in property/casualty (P/C) insurance by state and line of insurance, including return on net worth.

US and UK Negotiate Covered Agreement
The United States and the United Kingdom have reached agreement on a bilateral agreement on prudential insurance matters (“covered agreement”). The agreement is expected to be signed after a 90-day congressional layover period. 

APCIA, RIMS, others send letter to federal lawmakers urging NFIP renewal
APCIA, The Risk Management Society, insurers, banking organizations and real estate concerns filed a joint letter with congressional leadership urging action to avoid a lapse in the National Flood Insurance Program.

Federal and State 2018 Election Results - SUMMARY
APCIA summary of the 2018 federal and state elections results.

NY DFS issues Request for Comment on 2019 State Terrorism Data Call
On behalf of all states, the NY DFS has issued a Request for Comment on the 2019 state terrorism data call. The proposed state data call is identical in most respects to the federal terrorism data call. The proposed state data call makes no mention of the state Property Supplement that the states collected last year, raising the possibility that the states may not require completion of the Supplement in 2019.

State Legislative/Regulatory News | View all

Michigan Enacts NAIC Insurance Data Security Model Law
Michigan enacted House Bill 6491, the NAIC's Insurance Data Security Model Law, and House Bill 6406, which preempts entities and persons regulated pursuant to the Insurance Code from the Identity Theft Protection Act.

New York Department of Financial Services Cybersecurity Resource Center

NY DFS Memo: DFS Cybersecurity Regulation --First Two Years and Next Steps

Rhode Island DBR Issues Insurance Bulletin 2018-17, Blockchain Technology
The Rhode Island Department of Business Regulation Insurance Division (DBR) has issued Bulletin 2018-17 regarding Use of Distributed Ledger Technology in Insurance. 

California DOI encourages insurers to join FS-ISAC to share cybersecurity information
On October 31, 2018, CDI Commissioner Dave Jones sent a letter to insurer CEOs encouraging them to join and participate in the Financial Services Information Sharing and Analysis Center.

South Carolina DOI Publishes Second Bulletin on Data Security Act
The South Carolina Department of Insurance has issued Bulletin 2018-09 Cybersecurity Event Reporting Form. This is the second bulletin issued regarding implementation of the South Carolina Insurance Data Security Act.