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 - Data Breach
A study sponsored by IBM Security and conducted by Ponemon Institute found that the average cost of a data breach globally is $3.86 million, a 6.4 percent increase from the 2017 report.

Emerging Risk – Autonomous Vehicles
Published by Travelers Institute, How auto insurance can adapt to changing risks, presents an assessment of the existing auto insurance structure, both personal and commercial, in the context of resolving claims and providing fair compensation to accident victims as vehicles become more autonomous.

Emerging Risk – Terrorism
The Federal Insurance Office of the Treasury publishes its 2018 "Report on the Overall Effectiveness of the Terrorism Risk Insurance Program."

Emerging Risk – Global Risks
Swiss Re's 2018 SONAR report examines the emerging risks the re/insurance industry and society are facing. The report features 18 emerging risk themes and 7 emerging trends.

Emerging Risk – Catastrophic Risk Management
Podcast/transcript, “Betting on Disaster: Why Risk Management Is a Leadership Issue” - From product scandals to data breaches to natural disasters, companies are dealing with constant risk. But how they prepare for those risks can make the difference between riding the roughest wave — or drowning in it.

PCI Survey

PCI News

PCI Conference Call: Cyber & IoT Committee, July 23rd at 10 a.m. CDT
PCI members will discuss in further detail a pending proposal to establish a single data breach electronic reporting portal.

PCI Capital Engagement Series: "Marijuana Impairment: A Driving Factor in Auto Crashes", August 1, Washington D.C.
This congressional briefing will examine the role of policymakers and key stakeholders in identifying and advancing actions that can be taken to detect and prevent drug-impaired driving.

PCI Webinar: Insuring the Millennial Consumer, Aug 9th at 2 p.m. CDT
Millennials have become the largest living generation in the U.S. with immense buying power. In this webinar, Kevin Poll of Verisk will discuss Millennials' views of the insurance industry and what types of coverages are most valuable to them.

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 Capital Engagement Event: Hurricane Season: Preparedness, Response, and Recovery - SUMMARY
On May 31, stakeholder experts representing the private sector, safety community, and government participated in a panel discussion addressing hurricane season preparedness, response, and recovery.

Property/Casualty Industry Results 2017 Webinar: Perspectives from ISO, PCI, and III, May 14 - REPLAY
Executive leaders presented the financial results for the insurance industry in 2017, and discussed key challenges and opportunities facing insurers.

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.

PCI Webinar: Digitization of Insurance, Cyber Risks, and the Role of ERM – Presentation Slide Deck
PCI members received a presentation from Fred Karlinsky of Greenberg Traurig, P.A. on the area of emerging technology and the digitization of insurance, and the CRO’s role in managing the risks and opportunities they pose for the insurer.

Industry Events

Insurance ERM Conference: Insurance Risk & Capital Americas, Sept 24, New York City
Topics discussed will include: Regulatory pressures; Economic capital and modelling; Risk-based capital best practice; Future trends; Cyber risk; Data, IoT and AI; and the evolving roles of the CRO and Chief Actuary.

NAIC: Summer National Meeting, Boston, MA, August 4-7
On August 6, CIPR Summer Program: Can Regulation Keep up with Innovation? will explore how innovation, new technologies and changing consumer expectations are rapidly reshaping the insurance industry.

A.M. Best Webinar: Cyber - The Next Frontier in Personal Lines Insurance, July 19 2pm ET
Insurance and security expert panel will discuss how cyber threats such as data theft, system compromise and social media risks are no longer exclusive to businesses; they happen to people, as well. Registration open at www.ambest.com/webinars/cybersecurity18.

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.

NAIC CIPR: Lessons Learned from Recent Catastrophes, March 26 - Replay
The event featured a presentation and panel discussion on how catastrophe losses have impacted insurance availability, pricing and loss modeling. pre-storm preparedness, consumer protection and assistance, data needs, state approaches to facilitating mitigation and the effectiveness of building codes and standards.

Federal/National International 

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.

Federal Bipartisan Bill Introduced to Remove Threat of Federal Intervention and Prosecution in States with Legalized Marijuana
The Strengthening the Tenth Amendment Through Entrusting States (STATES) Act of 2018 would affirm that compliant marijuana transactions are not considered trafficking, and would remove industrial hemp from the list of substances prohibited under the Controlled Substances Act. (See Sen. Schumer Press Statement)

Senate Agriculture, Nutrition and Forestry Committee advance 2018 farm bill, including provisions to promote hemp production (Sec. 7125, 7401, 7415, 10111, 11101, 11106, 11112, 11120, 11121, 12608). Reference PCI Bulletin.

Autonomous Technologies and Infrastructure Hearing held in Senate - SUMMARY
The Senate Environment and Public Works Committee held a hearing entitled “Innovation and America’s Infrastructure: Examining the Effects of Emerging Autonomous Technologies on America’s Roads and Bridges.” Topics included: (1) Evaluating Autonomous Vehicle Technology; (2) Autonomous Vehicle Regulations and Implementation; (3) Autonomous Vehicle Funding; and (4) Cybersecurity Implications. 

State Legislative/Regulatory News | View all

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

North Carolina Adopts NAIC's ORSA Model Act
NC HB 383 adopts the NAIC ORSA Model Act which requires an insurer to conduct an ORSA at least annually when there are significant changes to its risk profile. The law has ... more >

News Article: Extracting Business Value via ORSA