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 – 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.

Emerging Risk – Marijuana/Cannabis
PCI Webinar replay/slides on the history of cannabis legality and use in American, and what the legal climate looks like today. Also, NAIC CIPR event replay (May 16) - led by CA Insurance Commissioner, this forum explored cannabis industry activities, its risks and how its 1st and 3rd party coverage needs are unique from other industries.

Emerging Risk – Climate Change
The UN-supported Principles for Responsible Investment will hold a Climate Forum in late June in three U.S. cities. These one-day events will focus on key climate topics and practical guidance towards managing the climate-related risks and opportunities.

Emerging Risk – Catastrophic Risks
PCI launches its annual hurricane season outreach campaign designed for policyholder, lawmaker, regulator, and media audiences.

PCI Survey

PCI News

Webinar: Florida Assignment of Benefits Crisis: Where Does the Industry Go From Here?, June 26
On June 27 at 2pm ET, the Insurance Journal will moderate an expert panel, including PCI's Logan McFaddin, who will share insights and experiences, provide an overview of the assignment-of-benefits crisis that is plaguing Florida, and discuss how the insurance industry is responding.

PCI/ISO: Property/Casualty Insurance Industry’s Surplus Continued to Grow in 2017, Despite 15.8 Percent Drop in Net Income.  See also published Financial Operating Results for the Year 2017

PCI Webinar: Here and Now: South Carolina Enacts the NAIC Insurance Data Security Model Law, June 21
PCI will host a presentation by Mayer Brown LLP, on June 21st at 1 p.m. CT, and discuss what steps insurers should consider in regards to this new statutory requirement.

PCI Webinar: Before and After the Storm: NICB's Aerial Imagery Tool, June 27
On June 27 at 1:00 p.m. CT, PCI will host a National Insurance Crime Bureau presentation regarding the Geospatial Intelligence Center and emerging drone technologies that can deliver pre and post loss geospatial imagery.

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.

PCI Outlines Priorities for State-Based Regulation and Role of the NAIC
PCI CEO addresses NAIC's Big Data Working Group, the NAIC's strategic plan, the distracted driving epidemic in the U.S., and international regulatory developments.

PCI Board Chair testifies before the House Financial Services Subcommittee on H.R. 5059, “State Insurance Regulation Preservation Act”

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.

ERM & Emerging Risks Committee Meeting: 2018 - May 10
The agenda will highlight key emerging issues related to strategic risk management, rating agencies, and the management of emerging risks, metrics and approaches integral to ERM strategy.

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

A.M. Best: Webinar - Stress Testing the Risks of Insuring Cyber Risk, June 18
Analysts from A.M. Best and modeling experts from Guidewire’s Cyence Risk Analytics will participate in a complimentary webinar on cyber risk on Monday, June 18, 2018, at 2 p.m. (EDT). Registration is open at www.ambest.com/webinars/cyber18.

LogicManager: Webinar - How to Manage Your Cybersecurity Risks, June 13
This presentation will discuss how to operationalize defense policies across departments and levels; assign clear cross-functional accountability for cyber responsibilities; explore metrics that monitor the effectiveness of cybersecurity programs; and, how to achieve quick wins and demonstrate continuous success to the board.

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: Insurance Summit, June 18 -22, Kansas City
Conference for insurance regulators, companies and stakeholders to explore innovative ideas, the latest technology and regulatory practices.

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 

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. 

U.S. House Transportation and Infrastructure Subcommittee Holds Hearing on "FAST Act Implementation: Motor Carrier Provisions" - SUMMARY

U.S. House Energy and Commerce Subcommittee Holds Hearing on "Internet of Things" innovations - SUMMARY

U.S. House Financial Services Subcommittee Holds Hearing on Autonomous Vehicles - SUMMARY.  See also NTSB preliminary report on Uber AV fatality.

President Trump signs into law the Economic Growth, Regulatory Relief, and Consumer Protection Act, S. 2155, with provisions to promote increased transparency in international insurance discussions and require U.S. negotiators to support consensus with state regulators in international negotiations on insurance standards.

House FSC Receives Testimony from Fed Reserve Vice Chair on Supervision and Regulation of Financial System - Summary

House Subcommittee on Health holds hearing on Combating the Opioid Crisis - SUMMARY

State Legislative/Regulatory News | View all

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

South Carolina Enacts ORSA Bill
South Carolina enacted SB 254, which requires domiciled insurers to conduct an Own Risk and Solvency Assessment. The bill is effective January 1, 2018.