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 - Autonomous Vehicles
June 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.

2019 Reports Highlight Key Emerging Risks for the Insurance Industry

Emerging Risk – Privacy, Reviver, Risk-Based Pricing
April 26, summary update and tracking chart of state activity related to data privacy (notification/response), reviver (sexual abuse), risk-based pricing (rating factors).  

Emerging Risk – Cyber Risk
AM BestTV Panel: A Key to Underwriting Cyber Risk Is Getting the Right Data 

Emerging Risk – Marijuana/Cannabis
Wilson Elser: Summary analysis of key CBD legal and risk management issues.

Emerging Risk – Shareholder Activism
The practice of shareholder activism with the primary intention of influencing the company's corporate strategy or governance is having impact on insurers. 

Emerging Risk – Artificial Intelligence
Lloyds Emerging Risk Report: "Taking Control: Artificial Intelligence and Insurance" 

APCIA Survey


Industry Financial Operating Results Full Year 2018
U.S. property casualty insurers registered a marginally profitable year in 2018, roughly breaking even on underwriting and slightly increasing investment returns.

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.

Industry Events

2019 InsureTech Connect Conference, Sept. 23 – 25, MGM Grand in Las Vegas
World’s largest insurance tech gathering to highlight insurance innovation and digital transformation. APCIA member registration fee discount.

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, April 2019 - APCIA RECAP SUMMARY
APCIA reports on NAIC developments related to such issues as big data and predictive models; innovation; group capital standards; and TRIA reauthorization and related data calls.

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.

Federal/National International 

Asset Risk: FSOC Discusses Concern With Deteriorating Corporate Debt Credit Quality
APCIA finds that while industry's exposure to lower-rated bonds has steadily increased, potential downgrades would have a manageable impact on p-c insurers' balance sheets. 

FDA Holds First Public Hearing on Cannabis and Cannabis-Derived Products
FDA hearing "to obtain scientific data and information about the safety, manufacturing, product quality, marketing, labeling, and sale of products containing cannabis or cannabis-derived compounds." 

NAIC Cannabis Insurance (C) Working Group Releases White Paper Draft for Comment
White paper to identify insurance issues, gaps and opportunities facing the cannabis industry and to identify best regulatory practices to address these issues.

Auto Insurance Discrimination is Focus of Hearing Held by House Financial Services Subcommittee
On May 1, 2019, the Subcommittee on Oversight and Investigations held a hearing entitled "Examining Discrimination in the Automobile Loan and Insurance Industries".

Federal Advisory Committee on Insurance Discuss Domestic and International Priorities
Summary of discussion: TRIA, innovation/technology, resilience, flood insurance, EU-US/UK-US covered agreements, market access trade, and capital standards.

U.S. Treasury Request for Comment - TRIA Small Insurer Study
Treasury seeks to study the challenges faced by small insurers in the terrorism insurance market.

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.

State Legislative/Regulatory News | View all

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.

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.