Industry Issues | ERM & Emerging Risks

ERM & Emerging Risks

PCI 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, PCI 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 PCI ERM & Emerging Risks Committee or other related matters, please contact David Kodama, assistant vice president, research.

Latest News | View all

Emerging Risk – Climate Change
U.S. climate science report forecasts changes in the climate that will disrupt the economies of every region in the country in the coming years; and, other related climate risk news.

Emerging Risk - Autonomous Vehicles
Summary of the most recent legislative and regulatory activity on Autonomous Vehicles at the state and federal levels as well as a "news and notes" section containing links to studies and articles related to the increasing automation of the driving function. 

Emerging Risk - Litigation
The U.S. Chamber Institute for Legal Reform reports that litigation cost in the U.S. has reached 2.3 percent of GDP. This bulletin presents highlights from the report and provides a link to the complete document.

Emerging Risk – Legalized Marijuana/Cannabis
IIHS/HLDI Report finds that collision claims frequency has risen up to 6% in Colorado, Nevada, Oregon and Washington -- which have legalized the recreational use of marijuana -- compared with neighboring states where it remains illegal.

Emerging Risk – Climate Change/Disclosure
The Prudential Regulation Authority of the Bank of England has published a consultation paper urging banks, insurers and asset managers to take a "strategic approach" to gauging their financial exposure to climate change.

PCI Survey

PCI News

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.

PCI Webinar: The Evolution of Strategic Thinking in Risk Management, November 8
PCI members are invited to hear a webinar presentation that will explore how the scope and mission of risk management continue to change as a result of regulatory, economic and geopolitical trends.

Property/Casualty Insurance Industry's Net Income More Than Doubles to $34 Billion in First-Half 2018
Private U.S. P/C insurers saw their net income after taxes more than double to $34 billion in first-half 2018 from $15.5 billion in first-half 2017, with the help of lower catastrophe losses, growing premiums, and an increase in investment income.

PCI Webinar: California's Consumer Privacy Act and the Future of Data Privacy - PRESENTATION SLIDE DECK
A recording of the webinar that addresses the implications of the recently enacted data privacy law is available for PCI members until October 12. A copy of the presentation slide deck is also available.

PCI Webinar: Here and Now: South Carolina Enacts the NAIC Insurance Data Security Model Law, PRESENTATION SLIDE DECK
Mayer Brown LLP presentation presented what steps insurers should consider in regards to this new statutory requirement.

Industry Events

NAIC CIPR Webinar: InsurTech: Technology and Innovation in the Insurance Sector, December 11
A presentation will be heard on the current InsurTech landscape, including business models and the future direction of the market. A panel discussion will follow that examines 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.

Fitch Ratings: North America Insurance Conference - Exploring the Rise of InsurTech, November 13, New York City
A series of keynotes and panel discussions will address such themes as Data-Driven Life Insurance Underwriting – Opportunities and Risks; Putting Data To Work In Bending the Healthcare Cost Curve; and, Technology Game Changers in Property/Casualty Insurance. Attendance is free of charge but pre-registration is required. AGENDA

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 

PCI, RIMS, others send letter to federal lawmakers urging NFIP renewal
PCI, 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
PCI 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.

International Insurance Standards Discussed at Federal Reserve House Hearing
The House Financial Services Committee held a hearing entitled "Semi-Annual Testimony on the Federal Reserve's Supervision and Regulation of the Financial System." Topics discussed in the hearing included: (1) Non- Bank SIFI Designations; (2) Cyber Hygiene; (3) International Insurance Standards; and (4) Insurance Savings and Loan Holding company legislation.

Private Flood Insurance, International Insurance Standards Discussed at Senate Federal Reserve Hearing
The U.S. Senate Banking Committee held a hearing entitled "Semi-Annual Testimony on the Federal Reserve's Supervision and Regulation of the Financial System" to discuss: (1) Private Flood Insurance, and (2) International Insurance Standards.

International Discussions on Regulation, Cyber Issues, Big Data and Sustainability
The IAIS held a day and half public conference on its priority projects. That was followed by another discussion of regulatory issues under the aegis of the EU-U.S. Insurance Dialogue. The GFIA also met, elected its new leaders and considered positions on capital regulation, natural catastrophes and disruption.

State Legislative/Regulatory News | View all

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.

South Carolina Insurance Data Security Act, Regulatory and Issues Update
The SC DOI will host an informational meeting regarding its Insurance Data Security Act (IDSA) in September. This bulletin also looks ahead to some potential legislation in 2019 and provides an update on a regulatory issue. 

Sweeping California Consumer Privacy Bill (AB 375) Approved by Governor
The Consumer Privacy Act requires companies to disclose how they will use data collected from consumers, and consumers can ask businesses to delete information from their databases. The law will take effect in 2020.

South Carolina DOI Publishes Bulletin on Insurance Data Security Law
SC DOI Bulletin 2018-2 is the first in an expected series, providing information regarding the state's enactment of the NAIC's Insurance Data Security Model Law.