According to Stefan Holzberger, Chief Rating Officer at A.M. Best, the property-casualty sector of the insurance industry saw improvements in performance. And with levels of capitalization “robust”, A.M. Best is maintaining a “Stable Outlook” on the Personal Lines, Commercial Lines and Reinsurance sector from a credit perspective. The reinsurance sector was only recently upgraded to “Stable” from “Negative”, despite heavy …

John Huff, President and CEO of the Association of Bermuda Insurers and Reinsurers (ABIR) discusses the health of the Bermuda market, as well as the challenges and opportunities he sees going forward. According to Mr. Huff, the Bermuda market is “very healthy.” The market is thriving even after the significant natural catastrophes of 2017 and 2018 “nat cats” including Hurricane …

David Sampson, president and CEO of the American Property Casualty Insurance Association (APCIA), discusses the challenges he faces in dealing with a dysfunctional government, the priorities for the year ahead, and the strength gained by the recent merger of the Property Casualty Insurers Association of America (PCI) with the American Insurance Association (AIA). During the 2019 Federal Government shutdown, Mr. …

During the IBM Blockchain Summit for Insurance in New York, AAIS CEO Ed Kelly, and Craig Bedell, IBM Global Insurance Industry Executive, as well as Bertrand Portier, a Distinguished Engineer in IBM’s Financial Services Sector all commented on the promise that blockchain holds for the insurance industry. Mr. Kelly believes it’s the inherent features of blockchain itself that make it …

The uptick in GDP has had a positive impact on the insurance industry, according to Laura Favinger, Chief Administrative Officer for the Insurance Information Institute (III). In the first half of 2018, insurance carriers nearly doubled their net income over the same period in 2017. The III sees exposures broadening a bit due to business development, consumer consumption and construction, …

The biggest issues facing reinsurance buyers today are growth, expense management and capital efficiency, according to Mike Schnur, a Partner at TigerRisk. Carriers are focused on growing profitably through new product lines, new teams, as well as mergers and acquisitions (M&A). Carriers feel that there are costs that can be reduced to reduce expense ratios. More and more carriers are …

Andrea Keenen, Senior Managing Director and Head of Industry Relations at A.M. Best Company, shares her thoughts on the “protection gap”, technology, and the impact of economic growth on insurance. The “protection gap” exists around the world, including the United States. Many people are simply not buying the insurance they need. She notes that governments around the work and the …

BriteCore CEO and Founder Phil Reynolds provides insights into the risks, challenges and opportunities affecting the changing insurance market due in large part to data. He says many insurers simply so not understand what their data means. The data collected on policies, claims, losses and consumer behaviors is a gold mine, and most don’t even know it. He notes that …

According to Sean Kevelighan, President & CEO of the Insurance Information Institute (III), says catastrophes, both natural and man-made, are having a large impact on personal lines insurance carriers. An increase in natural catastrophe has an impact on auto and homeowner’s insurance, and the “vastly underserved” flood market continues to be an issue. The auto insurance market is being impacted …

Kimberly Muccia, a Financial Analyst at A.M. Best Company, comments on the impact of catastrophic losses on the financial strength of insurers. Among the catastrophes affecting the auto and homeowner lines of business in 2018 were hurricanes and wildfires, resulting in about $17 billion for the Mutual Insurance segment alone. Despite the losses, Mutuals posted approximately a 6 percent increase …

The biggest issues facing home insurance carriers today fall into two categories, according to George Hosfield, Senior Director of Home Insurance for LexisNexis Risk Solutions. Consumer expectation is driving changes to the customer experience as well as changes to the experience for agents. Mr. Hosfield says much of that is driven by “upstart insurtech” companies raising the bar, and general …

According to AAIS Product Manager Casey Brewer, the biggest issues facing auto insurers today revolve around technology and the speed of technological change. Technology is changing the nature of the risk to the vehicle, as well as driver behavior and distracted driving and the insurer’s operations. Ironically, the opportunities auto insurers have are related to the challenges. New technologies are …

Insurers are doing a balancing act between operational excellence and the changing insurtech landscape. Karen Furtado, a partner at Strategy Meets Action sees insurers struggling with how to adapt, how to adopt, and how to change their culture to deal with the ‘new reality’ while maintaining a high degree of service. Ms. Furtado sees endless opportunity in today’s economy. Insurers …

Chuck Chamness, President and CEO of the National Association of Mutual Insurance Companies (NAMIC) admits insurance is a challenging business, and it’s changing rapidly. Among the contributing challenges facing the industry is technology, which is increasing the speed of change. The talent gap presents issues for companies looking to replace retiring workers while attracting a new generation of professionals. He …

Regulation and technology are the biggest challenges facing insurers today. That, according to Fred Karlinsky, Co-Chair of the Insurance Regulatory and Transactions Practice Group at Greenberg Traurig. On the regulatory front, Mr. Karlinsky notes a large amount of regulation affecting carriers at the federal and State level, as well as internationally at the IIAS (International Association of Insurance Supervisors). He …

Attracting talent remains biggest challenge for insurers. According to Matt Masher, EVP and COO at A.M. Best, the need for talent is greatest in the information technology (IT) area. The industry has done a lot to attract underwriting and claims professionals. But attracting the industry struggles in attracting IT talent needed to deal with insurtech issues, efficiencies in distribution and …

Fragmentation is a major issue within the insurance industry today, according to Phil Reynolds, CEO & Co-Founder of BriteCore. Traditionally carriers sold products through agents, and were backed by reinsurers. Now, insurtechs are challenging traditional distribution and underwriting models, while reinsurers are going directly to the market through MGAs (Managing General Agents). There is a lot of flux. As a …

Rohit Verma, Global COO of Crawford & Company, believes data will continue to be a big asset to insurers, and the companies that can mine data effectively will see the biggest benefit. While advanced technology is necessary to leverage data, companies need to develop the mindset to incorporate insights in day-to-day work. Mr. Verma also sees “lack of talent” as …

According to The Institutes President & CEO Pete Miller, disruption in the insurance industry “is all about data” and related technologies. Insurance is the “original big data industry”, and Mr. Miller sees a confluence of new technologies coming that will enable better decision making around data. Mr. Miller sees adoption as a challenge to the insurance industry. Those that do …

Roger Morris, Chief Communications Officer with the National Insurance Crime Bureau (NICB), says technology has been a disruptor  when it comes to insurance fraud.  Anti-theft devices have helped deter crime and provide better analytics to detect fraud. The industry also has to contend with hackers trying to defeat the system. Mr. Morris points to electronic devices that can open and start …