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 Pearce, vice president and director, tax policy.

APCIA News

APCIA ERM Webinar: Identifying and Managing Emerging Risks, January 14, 2020
The presentation explored emerging risk research and discovery processes, evaluation strategies, response planning, and integrating and enhancing emerging risk capabilities. Click here to download the presentation.

APCIA Update: International governmental organizations' cyber insurance projects
APCIA recently engaged the IAIS and the OECD on their cyber insurance and cyber resilience projects.

APCIA Annual Meeting, October 20-22, Boston MA
"Present at the Creation: The Past, Present, and Future of TRIA," will be one of the featured panel discussions on the meeting agenda.

APCIA: P/C Insurers Reports New Record Surplus in First-Half 2019 as Stock Market Recovers
Private U.S. p/c insurers' surplus reached a new record of $802.2 billion in the first half of 2019, pushed up by insurers' income and unrealized capital gains.

APCIA: "Cyber Security and Data Breach Requirements for Insurers" tops the list in the 2019 Emerging Risks Survey
ERM Committee members were asked to identify the top 5 emerging risks that are most top-of-mind and relevant to their enterprise risk management duties.

APCIA Enterprise Risk Management Committee Conference, June 20
The inaugural in-person meeting of the APCIA Enterprise Risk Management Committee was held on June 20, at APCIA's headquarters building in Washington, DC. 

Industry Events

Insurance Journal: Insurance Industry Events

The 17 Best Risk & Security Conferences of 2020. 17 can’t miss conferences for Risk and Security professionals in 2020.

The Institutes--The Future of Risk   Join risk leaders and innovators at The Institutes’ event, The Future of Risk™, to learn how disruptive technologies will change the way we work and the risks we insure. This three day event connects you directly with thought leaders and executives who are paving the way in and shaping the future of risk management. This event offers tracks in Digital Disruption, Emerging Risk & Business Models, and Innovation and Risk. 

ABA—Risk Management Conference—March 25-27, 2020.  Discover solutions for the full range of risk and leave with strategies to mitigate exposure, build effective governance processes and asses risk tolerance. You’ll dive deeper into topics such as “recession proofing” your organization, managing the risk of a cyber crisis, meeting the risks of new technology and much more.

American Bankers Association (ABA) Program | Insurance Risk Management Forum--January 26-29, 2020, Omni La Costa Resort & Spa Carlsbad, CA

Dig|In 2020: The Digital Future of Insurance, May 27-29, 2020 - Austin, TX
Presentations and discussions will address innovative new ideas and technology driving the digital transformation of the insurance industry.

The Institutes: The Future of Risk, April 10-12, 2020 – Chicago
Disruptive technologies will be explored, including blockchain, data analytics, and risk tech that are shaping the future of risk management.

NAIC: Fall National Meeting, December 6-10, Austin, TX – Wrap-Up Summary
The APCIA covered numerous meetings related to property and casualty issues.

Federal/National International 

Automated Vehicle Update - January 2020

Autonomous Vehicle 4.0 Guidance Released by Department of Transportation

TRIA 7-year Reauthorization Added to Federal Spending Bill
See also TRIA of 2019 (S.2877); APCIA letter of support.

Consumer Data Privacy Hearing Held by Senate Commerce Committee - SUMMARY
The hearing on “Examining Legislative Proposals to Protect Consumer Data Privacy” discussed recent proposals to establish national standards providing individuals privacy “rights” with meaningful transparency and clarity.

TRIA Reauthorization Act Passes Senate Banking Committee
The Senate Committee on Banking, Housing, and Urban Affairs approved S. 2877, which would extend the TRIA program for seven years.

House Passes TRIA Reauthorization Bill
The House of Representatives passed the Terrorism Risk Insurance Program Reauthorization Act of 2019 (H.R.4634).

Autonomous Vehicle Safety Hearing Held by Senate Commerce Committee – SUMMARY
Senate Committee on Commerce, Science, and Transportation held hearing, "Highly Automated Vehicles: Federal Perspectives on the Deployment of Safety Technology." APCIA submitted statement.

Congress to Consider International Insurance Standards Act of 2019
H.R. 4835 provides that the U.S. would refuse to agree to any standard or agreement if determined the existing U.S. regulatory system would not satisfy the proposed measure. 

State Legislative/Regulatory News  

NAMIC opposes NPPA insurance regulation citing concern for state markets

State Insurance Regulators Adopt Best Interest Rule for Annuity Sales

Lobbyists Work To Get States To ‘Quickly’ Adopt New Annuity Rules

New Hampshire Enacts SB-194, Insurance Data Security Law
NH establishes standards for data security, the investigation of a cybersecurity event, and notification of a breach to the insurance commissioner.

Delaware Enacts The Insurance Data Security Act
DE establishes standards for data security for Insurance Code licensees, and standards for the investigation of and notification to the Commissioner of a cybersecurity event affecting licensees.

Alaska Enacts Corporate Governance Annual Disclosure Act
AK House Bill 78 requires insurers or insurance groups domiciled in the state to file a CGAD.

Connecticut Enacts HB-7424, Insurance Data Security Law
The state's budget bill enacts the Insurance Data Security Law and takes effect October 1, 2020.

Mississippi Issues Compliance Guide for Insurance Data Security Act
MS DOI issues bulletin 2019-4 to guide compliance with MS Senate Bill 2831, the Insurance Data Security Act (effective July 1, 2019).

Ohio Omnibus Bill Enacts NAIC Insurance Data Security Model Law
Senate Bill 273 was signed by the governor on Dec. 19, with effective date March 20, 2019.

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.

Other APCIA Links

Reports and Studies

Managing emerging risks from the Internet of Things

15 Emerging Risks Worth Watching That Are Not Cyber

Insurance 2030—The impact of AI on the future of insurance

Digital ecosystems for insurers: Opportunities through the Internet of Things

Emerging Risks: What are the main risks for 2025?

ONRISK A Guide To Understanding, Aligning, and Optimizing Risk

EY-2020-Top 10 Business Risks and Opportunities

Insurance Thought Leadership--5 Emerging Trends for Insurance in 2020

AON Report on Weather, Climate and Catastrophe

2020 Insurance Fact Book from the Insurance Information Institute – New section on Emerging and Evolving Insurance Issues

Deloitte Insights – 2020 Insurance Outlook – Insurers adapt to grow in a volatile economy 

PWC — Insurance 2020: Turning Change into Opportunity

Hiscox Cyber Readiness Report - 2019

Willis Towers Watson: Quarterly InsurTech Briefing – Q3 2019

KPMG: U.S. CEO Outlook 2019

RIMS/Marsh: Excellence in Risk Management Survey - Strategic Risk Finance in the Era of Big Data

GAO: Insurance Markets - Benefits and Challenges Presented by Innovative Uses of Technology

Marsh: US Terrorism Backstop Renewal ‘Crucial’ to Market Stability (Fact Sheet)

Swiss Re: SONAR New Emerging Risks Insights - May 2019

Canadian Institute of Actuaries, Casualty Actuarial Society, and Society of Actuaries: 12th Annual Survey of Emerging Risks

Aon: 2019 Global Risk Management Survey

CRO Forum: Understanding and managing the IT risk landscape. A practitioner’s guide

Deloitte: 2019 Regulatory Outlook

Marsh: Cyber Risk Management - Response and Recovery

World Economic Forum: The Global Risks Report 2019

World Economic Forum: Mitigating Risks in the Innovation Economy