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.

Latest News  

​‘Landmark' parametric earthquake catastrophe bond comes to market
Cat bond aims to protect against mortgage default risk caused by earthquakes.

Emerging Risk - Autonomous Vehicles
December 2019 summary of legislative and regulatory activity on AVs 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 Risks – Legislative Action on Privacy, Reviver, Risk-Based Pricing/Underwriting
APCIA summary of legislative activity as of November 15, 2019, including a review of the 2019 Enacted Legislation.

Emerging Risk – Autonomous Vehicles
The Society of Actuaries and a project oversight group that included APCIA release an Automated Vehicle Outlook report.

Emerging Risk – Cyber Risk
Hiscox 2019 Cyber Readiness Report: Firms reporting cyber incidents has risen from 45% last year to 61% in 2019.

Emerging Risk – Disparate Impact
APCIA files comments responsive to HUD's disparate impact NPRM; Continues to press for an exemption for risk-based pricing and underwriting of homeowners and commercial habitational insurance.

APCIA Survey


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

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.

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.

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?

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 

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  

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.