Industry Issues | ERM & Emerging Risks

Latest News

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.

Emerging Risk – Marijuana/Cannabis
APCIA White Paper provides a history of hemp in the United States, its federal regulation, and the impact of the 2018 Farm Bill implementation.

Emerging Risk - Autonomous Vehicles
October 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 October 11, 2019, including a review of the 2019 Enacted Legislation

Emerging Risk – Data Privacy
CA Consumer Privacy Act introduces new privacy rights: right to know what PI a business has collected about them; how the business uses and discloses the data; and, right to request that the business delete that information.

Emerging Risk – 7 factors that could drive enterprise risk management in 2030
The world of the CRO has been changing rapidly over the past decade and is likely to continue changing significantly over the next 10 years.

Emerging Risk – Innovation; Rating Agencies
AM Best releases an updated draft of its new criteria procedure, "Scoring and Assessing Innovation" and proposed revisions to Best's Credit Rating Methodology.

Emerging Risk - Autonomous Vehicles
September 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 – Disparate Impact/Litigation Risk
U.S. Dept of HUD has published a proposed rule in the Federal Register amending its interpretation of the Fair Housing Act's disparate impact enforcement standard.

Emerging Risks – Legislative Action on Privacy, Reviver, Risk-Based Pricing/Underwriting
APCIA summary of legislative activity as of August 23, 2019, including a review of the 2019 Enacted Legislation

NAIC Climate Risk and Resilience (C) Working Group - Meeting Recap
The Working Group received an update on CA wildfires, CDI-UN environment program partnership, climate risk disclosure survey, and a presentation from One Concern.

Emerging Risk – Data Privacy
Industry report examines the California’s new data privacy law. 

Emerging Risk - Autonomous Vehicles
July 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 – Global Risk Management Study
Aon 2019 report identifies challenges organizations face in assessing and responding to traditional and emerging risks. 

Emerging Risk - Autonomous Vehicles
July 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 – Global Risk Management Study
Aon 2019 report identifies challenges organizations face in assessing and responding to traditional and emerging risks. 

Emerging Risk – RIMS/Marsh Excellence in Risk Management Report
2019 report explores strategic risk financing in the era of big data.

Emerging Risks – Legislative Action on Privacy, Reviver, Risk-Based Pricing/Underwriting
APCIA summary of legislative activity as of June 21, 2019.

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" 

Emerging Risk – Data Privacy Laws
Risk Management Article: Data Privacy Governance in the Age of GDPR

Emerging Risk – Climate Change
California Insurance Commissioner declines to grant the Petition to impose mandatory climate activist disclosures on insurers. 

Emerging Risk – Privacy, Reviver, Risk-Based Pricing
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
Marsh report on 2018 Cyber Insurance Trends explores purchasing, limits and pricing over the past three to five years by industry. 

Emerging Risk – Reinsurance (ILS)
AM Best webinar examines how they rate ILS-affiliated collateralized reinsurers and reviews recent activities and trends in $98B ILS market. Presentation slide deck.

Emerging Risk – Climate Change
NAIC assigns new resiliency-focused charges to Climate Change Working Group. 

Emerging Risk – Data Privacy
Risk Management Article: Data Privacy Governance in the Age of GDPR - the regulatory and operational ramifications.

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.

Emerging Risk – Marijuana/Cannabis
A.M. Best Report explores the insurance implications of expanded state availability of medical and legalized recreational marijuana. 

Emerging Risk – Climate Change
Climate activist group delivered a formal petition to California Department of Insurance Commissioner seeking mandatory insurer disclosures of the fossil fuel projects they insure. 

Emerging Risk – Big Data/Advanced Analytics
The APCIA and other interested parties have filed commentregarding a NAIC draft proposal for “best practices” guidance for state departments - and insurers - in review of predictive models underlying a filed rating plan.

Emerging Risk – Rating Agencies
A.M. Best exposes draft rating criteria that would score and assess an insurer’s level of innovation.

Emerging Risk – Artificial Intelligence
Industry News: Six ways insurers may use AI to advance their business operations in 2019 (and beyond) 

Emerging Risk – Marijuana/Cannabis
III report examines the current knowledge of marijuana impairment: effects on driving abilities, traffic safety impacts, and state responses to the issue of “stoned driving.” 

Emerging Risk – GAO 2019 High Risk List
The report lists federal programs and operations that are ‘high risk’ due to vulnerabilities to fraud, waste, abuse, and mismanagement, or that need transformation, including the need to manage climate change risks.

Emerging Risk – Environmental Social Governance
The UN released a paper for consultation on proposed guidelines on how to include consideration of ESG factors in underwriting by property casualty insurers.

Emerging Risk – Environmental Social Governance
Insurers and reinsurers are increasingly incorporating ESG practices into their investment and underwriting decision-making process. 

Emerging Risk – Blockchain
Infographic describes how blockchain technology may improve 16 different industries, from music, insurance, to government. 

Emerging Risk – Climate Change
Risk Management News: Taking Action on Climate Change - What can risk managers do to help their companies assess their exposure and determine how to respond?

Emerging Risk – Rating Agencies
S&P Global Ratings Proposes Insurer ERM Evaluation Framework. 

Emerging Risk – Artificial Intelligence
Industry News: Here’s How Artificial Intelligence Is Poised to Transform Insurance Underwriting for the Better 

Emerging Risk – Talent Gap
Industry News: Addressing the insurance industry talent gap 

Emerging Risk - Predicting Risk Management Challenges in 2019

Emerging Risk – Blockchain
Risk Management Article: Can Blockchain Improve Insurance? 

Emerging Risk – Cyber Security
Aon Report: The 8 Cyber Risks That Are Worrying The C-Suite. See also, 2019 Cyber Security Risk Report.

Emerging Risk – Global Risks
Environmental and Cybersecurity Risks are top concerns in World Economic Forum Global Risks Report.

Emerging Risk – Rating Agencies
A.M. Best benchmarking review highlights insurers' ERM capabilities; reports most companies remain strongly capitalized and able to demonstrate patterns of stability.

Emerging Risk – Climate Change
California insurance commissioner appoints deputy commissioner of climate and sustainability; CDI releases analysis of climate risk exposure of insurers' investments released.

Emerging Risk – Climate Change
New California Insurance Commissioner, Ricardo Lara, pledges to confront climate-fueled wildfires, fight fraud, expand health care. CDI releases new report and analysis as part of Climate Risk Carbon Initiative.

Emerging Risk - Autonomous Vehicles
January 2019 summary of recent legislative and regulatory activity at the state and federal levels as well as "news and notes" links to studies and articles related to the increasing automation of the driving function.

Emerging Risk – Litigation
Judicial Hellholes 2018/2019 reports on some of the toughest jurisdictions in the country for civil litigation defendants. The report includes the American Law Institute's "Restatement of the Law, Liability Insurance" among its list of "Dishonorable Mentions."

Emerging Risk – Cyber
Oliver Wyman: Article - Is Your Company Ready For A Cyberattack? 

Emerging Risk – Marijuana/Cannabis
FDA issues statement on signing of the Agriculture Improvement Act and the agency’s regulation of products containing cannabis and cannabis-derived compounds. See also FDA and Marijuana: Questions and Answers

Emerging Risk – Regulation
Deloitte: Report - 2019 Insurance Regulatory Outlook: Leading in times of change

Emerging Risk - Autonomous Vehicles
Summary of the December 2018 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 the increasing automation of the driving function. 

Emerging Risk – Climate Change
U.S. climate science report forecasts changes in the climate that will disrupt the economies of every region in the country in the coming years; and, other related climate risk news.

Emerging Risk - Autonomous Vehicles
Summary of the most recent 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 the increasing automation of the driving function. 

Emerging Risk - Litigation
The U.S. Chamber Institute for Legal Reform reports that litigation cost in the U.S. has reached 2.3 percent of GDP. This bulletin presents highlights from the report and provides a link to the complete document.

Emerging Risk – Legalized Marijuana/Cannabis
IIHS/HLDI Report finds that collision claims frequency has risen up to 6% in Colorado, Nevada, Oregon and Washington -- which have legalized the recreational use of marijuana -- compared with neighboring states where it remains illegal.

Emerging Risk – Climate Change/Disclosure
The Prudential Regulation Authority of the Bank of England has published a consultation paper urging banks, insurers and asset managers to take a "strategic approach" to gauging their financial exposure to climate change.

Emerging Risk - Innovation
A.M. Best released a series of special reports based on a survey analysis of the state of innovation in the insurance industry. Best found that a significant majority of insurers recognize that innovation is increasingly becoming a differentiator in the global marketplace.

Emerging Risk - Autonomous Vehicles
Summary of the most recent 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 the increasing automation of the driving function.

Emerging Risk – Cyber
A.M. Best Special Report on cyber insurance gauges the potential impact on segment leaders in a more-developed future market. The rating agency stress-tests cyber risks against a company’s balance sheet to confirm that the cyber portfolio does not pose capital stresses, including an evaluation of risk mitigation strategies. See also AMB Video.

Emerging Risks – Industry Experts Survey
The Insurance Journal surveyed insurance experts about what they see as the most important emerging risk for the property/casualty insurance industry. As expected, consensus formed centrally around cyber.

Emerging Risk – Climate Risk/Regulation
The September 2018 Status Report from the Task Force on Climate-related Financial Disclosures provides an overview of the extent to which companies in their 2017 reports included information aligned with the core TCFD recommendations published in June 2017.

Emerging Risk – Climate Change
European campaign to urge insurers to divest from Coal and Fossil Fuels expands to the U.S.

Emerging Risk - Disparate Impact/Litigation Risk
PCI responded to a joint news release from the activists, the CFA and CEJ, criticizing PCI and the NAIC about a planned Auto Insurance Report and calling for public release of raw industry data in order to determine company practices of unaffordable ratemaking.

Emerging Risk - Autonomous Vehicles
September 2018 summary of the most recent 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 the increasing automation of the driving function.

Emerging Risk – Climate Change
California Climate Change Report Includes Research on Climate Impacts and How to Respond, and other related news.

Emerging Risk – Disparate Impact
PCI continues its work to generate stakeholder comments on the Advance Notice of Proposed Rulemaking titled Reconsideration of HUD's Implementation of the Fair Housing Act's Disparate Impact Standard.

Emerging Risk – Litigation
More than a decade after Hurricane Katrina, Mississippi's attorney general continues to pursue subrogation lawsuits against insurers, threatening legal uncertainty for the industry.

Emerging Risk – Natural Catastrophes
A.M. Best’s Briefing, “Wildfires: The New Normal?”, finds that as housing development has ramped up in more rural areas and wildlands in California, the resulting wildfire threat will require insurers to reconsider their underwriting strategies and risk management to reflect shifting conditions in the current landscape. (AMB Video ReportNews article)

Emerging Risk – Regulation (NAIC)
PCI continues its engagement in NAIC deliberations on many industry issues that will have a major impact on the future of the insurance marketplace.

Emerging Risk - Legalized Marijuana/Cannabis
Panelists at a PCI forum in Washington, D.C., discussed the effects of marijuana-impaired driving on the safety of US roads as 29 states and the District of Columbia have legalized some form of marijuana. See also related news article.

Emerging Risk – Autonomous Vehicles
August 2018 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 the increasing automation of the driving function.

Emerging Risk - Autonomous Vehicles
The Insurance Institute for Highway Safety's "Status Report" summarizes the latest IIHS and Highway Loss Data Institute (HLDI) research on driver assistance features such as active cruise control and active lane keeping.

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.

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.

Emerging Risk – Insurtech
A.M. Best interviews of technology based companies looking to build new insurance tools and solutions address the challenges in engaging with insurance companies that have the motivation and resources to leverage new processes and technologies.

Emerging Risk - Autonomous Vehicles
May 2018 update on 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 the increasing automation of the driving function.

Emerging Risk – Disparate Impact
Meaningful progress has been made in a multi-year effort to prevent the U.S. HUD Department from applying its disparate impact standard to the business of insurance.

Emerging Risk – Climate Change
California Insurance Commissioner Dave Jones will take the unprecedented action to conduct climate-related stress tests on insurance company investments.

Emerging Risk – Autonomous Vehicles
A summary of the most recent legislative and regulatory activity on Autonomous Vehicles at the state and federal levels as well as a "news and notes" section containing links to related studies and articles.

Emerging Risk – 2018 Emerging Risks UPDATE
A "tech takeover" tops the list of enterprise-wide threats in the 2018 PCI ERM and Emerging Risk Committee Survey. This departs from the 2017 results that ranked natural catastrophes as the most significant top-of-mind issue for enterprise risk managers.

Emerging Risk – Big Data/Predictive Analytics
A.M. Best: Predictive Analytics can aid performance and balance underwriting cycles for commercial lines insurers.

Emerging Risk – Blockchain Technology
Fitch Ratings: Blockchain has the potential as game-changing technology for the insurance industry. However, the technology remains unproven, and greater clarity around its advantages and risks has yet to be revealed.

Emerging Risk – Machine Learning Technology
Oliver Wyman: As promising as machine-learning technology is, it can also be susceptible to unintended biases that require careful planning to avoid.

Emerging Risk – Merger & Acquisitions
EY: 2017 contained signs of M&A trends expected to accelerate as more insurers seek to transform, using business acquisitions or disposals as elements of that transformation.

Emerging Risk: NAIC – State Regulation
The National Association of Insurance Commissioners held its spring national meeting in Milwaukee from March March 24 - 27. 

Emerging Risk: Blockchain
A.M. Best release series of video episodes highlighting the future use of blockchain technology; Marsh announces collaboration on development of a commercial blockchain solution for proof of insurance.

Emerging Risks – 2018 Survey Results
"Cyber security and data breach" tops the list of enterprise risks cited in the 2018 Emerging Risks Survey.