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/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.

Emerging Risk - Innovation
A.M. Best released a series of special reports based on a survey analysis of the state of innovation in the insurance industry. Best found that a significant majority of insurers recognize that innovation is increasingly becoming a differentiator in the global marketplace.

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 – Cyber
A.M. Best Special Report on cyber insurance gauges the potential impact on segment leaders in a more-developed future market. The rating agency stress-tests cyber risks against a company’s balance sheet to confirm that the cyber portfolio does not pose capital stresses, including an evaluation of risk mitigation strategies. See also AMB Video.

Emerging Risks – Industry Experts Survey
The Insurance Journal surveyed insurance experts about what they see as the most important emerging risk for the property/casualty insurance industry. As expected, consensus formed centrally around cyber.

PCI Survey

PCI News

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.

PCI Webinar: What Every Insurer Needs to Know About Blockchain – PRESENTATION SLIDE DECK
PCI members received a presentation on the significance of blockchain networks and implications for the insurance industry.

Industry Events

NAIC: Fall National Meeting, San Francisco, CA - November 15-18
PCI will report on meetings covering such issues as insurance group capital standards, industry use of big data & predictive modeling, auto insurance affordability, and TRIA & NFIP reauthorization.

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
Full details of the conference will be circulated shortly. Attendance is free of charge but pre-registration is required.

RIMS 2018 ERM Conference, October 29 -30, Montreal
This ERM event features experienced speakers, relevant and practical presentations and knowledge sharing opportunities to network. A PCI-RIMS presentation will highlight the findings of the joint white paper, Communicating the Value of Enterprise Risk Management - The benefits of developing an Own Risk and Solvency Assessment Report.

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 

U.S. Industry Group and the British Government Published IoT Security Protocols
The British Government and a U.S. industry group have separately published Internet of Things security protocols that could affect evolving IoT security liability exposures.

Federal Insurance Office Issues 2018 Annual Report on the Insurance Industry - PCI Summary
The FIO report on the U.S. insurance industry provides review and recommendations, including that the U.S. consider negotiating a covered agreement under the Dodd-Frank Act with the United Kingdom after the Brexit process is finished. 

Autonomous Vehicles and Innovations Hearing held in House - SUMMARY
On September 5, the House Transportation and Infrastructure Subcommittee on Highways and Transit held a hearing entitled "Innovation in Surface Transportation." Topics discussed in the hearing included: (1) Regulations; (2) Innovations; and (3) Congestion.

U.S. House Energy and Commerce Committee Holds Hearing on Drug-Impaired Driving - SUMMARY
Congressional hearing, "Examining Drug-Impaired Driving" discussed: (1) Field Testing; (2) Marijuana Impaired Driving; (3) Public Education and Current Efforts to Reduce Drug Impaired Driving; and (4) Legal Limits.

U.S. Justice Department releases report of the Attorney General’s Cyber-Digital Task Force
The Task Force reports on the cyber threats facing the United States and the department’s tactics for investigating, disrupting and deterring those risks.

State Legislative/Regulatory News | View all

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. 

South Dakota Adopts ORSA Guidance Manual
The SD Department of Labor and Regulation/Division of Insurance has adopted SDCL 20:06:09 , which adopts the NAIC ORSA Guidance Manual, 2014 edition. The  ... more >

New York DFS Issues Guidance Related to the Equifax Data Breach

New York DFS Posts FAQs on the Cybersecurity Requirements for Financial Services Companies Regulation