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 – Marijuana/Cannabis
Industry Article: Part 1, Effect on lines of insurancePart 2, Cannabis-related businessesPart 3, Banking institutions and insurance companies 

Emerging Risk – Climate Change
Climate science advisory panel calls upon communities to take steps to prepare for climate change.

Emerging Risk - Autonomous Vehicles
March 2019 summary of 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 self-driving technology.

Emerging Risk - Blockchain
Industry Article: There is a clear sense that blockchain is a potential game-changer. However, there are also emerging doubts. Why?

Emerging Risk - Climate Change
APCIA submitted testimony to a U.S. House Transportation and Infrastructure Sub-Committee on resilient federal infrastructure and climate change.

Emerging Risk - Litigation Funding
APCIA, Chamber of Commerce Institute for Legal Reform and others file comment on needed changes to the Federal Rules of Civil Procedure to require disclosure of third party litigation funding.

APCIA Survey

APCIA News

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
REGISTER now for the APCIA ERM Committee meeting on June 20 from 9:00 a.m. until 4:00 p.m. EDT at APCIA's office at 555 12th Street, NW, Washington, DC.

APCIA Webinar: The Underwriter of the Future - REPLAY
The March 28 presentation explored insurers’ use of big data, RPA, AI and machine learning. A recording of the webinar and a copy of the slides are available for APCIA members.

APCIA ERM Webinar: The Risk Management of Cyber Security and Data Protection Regulations
The slide deck presented on March 8, is available to APCIA members. Members also have access to a replay of the webinar until April 11.

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.

Industry Events

A.M. Best Webinar: (Playback) How Insurers Are Transforming Their Business through Data, Machine Learning and AI
A panel discussion examines new technologies in underwriting to claims management to customer interactions and how insurers can keep pace with customers and competitors.

NAIC: Spring National Meeting, Orlando, FL April 6 - 9
APCIA NAIC Meeting Preview Report. See also, CIPR Program: The Future of Blockchain in Insurance, Monday, April 8.

OnRamp Insurance Conference, April 11, Minneapolis-St. Paul, MN
The conference will highlight innovations disrupting the insurance industry, the leaders making such innovations possible and how new technologies and business models will reinvent the industry. APCIA member register using code APCIA10.

S&P Global Podcast: The Environmental, Social and Governance trends that will shape 2019

Mayer Brown Teleconference: (Replay) US Public Company Climate Change Disclosures: Where Do We Stand?

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.

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 

House Financial Services Committee Passes Marijuana Safe Harbor Bill, Including for Insurers
H.R. 1595 to include an amendment expanding to insurers a safe harbor to provide financial services directly to cannabis-related legal businesses in states that have legalized marijuana in some form.

Senate Judiciary Hearing, "GDPR & CCPA: Opt-ins, Consumer Control, and the Impact on Competition and Innovation" - SUMMARY
The hearing discussed: current data practices; opt-in vs. opt-out standards; data breach notification; federal preemption; enforcement mechanisms; data rights; children’s data; the GDPR; and, political advertising.

Data Privacy Discussed During Senate Judiciary Hearing - SUMMARY
The hearing, “GDPR & CCPA: Opt-ins, Consumer Control, and the Impact on Competition and Innovation,” addressed current data practices; opt-in vs. opt-out standards; data breach notification; federal preemption; enforcement mechanisms; data rights; children’s data; issues with the GDPR; political advertising; and miscellaneous issues.

APCIA Submits Testimony to House Transportation and Infrastructure Committee 
The Congressional hearing is entitled, "Examining How Federal Infrastructure Policy Could Help Mitigate and Adapt to Climate Change."

Financial Stability Oversight Council Issues Draft Activities-Based Systemic Risk Guidance
The federal FSOC released proposed guidance that would prioritize its efforts to identify, assess, and address potential risks and threats to U.S. financial stability through a process that emphasizes an activities-based approach.

House Ways and Means Committee holds hearing on US-China trade (tariffs) policy

Marijuana Banking Safe Harbor Discussed By House Financial Services Committee
APCIA working with legislation sponsors to provide for a similar safe harbor for insurers.

State Legislative/Regulatory News | View all

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.

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.