Kevin Kelley, CEO of Ironshore, addresses the key concerns of risk managers today, including emerging technology, the “Trump effect”, PPPs, M&As, and more.
One of the biggest concerns of risk managers is technology and how digital transformation will affect their business and how exposures may change as a result. Emerging technologies are having a significant impact on risk managers. According to Mr. Kelley, usage of mobile devices, mapping, data storage, artificial intelligence, robotics…much of the new digital technologies are being used in manufacturing, which leads to more property risk and potential losses.
Mr. Kelley believes the “Trump effect” will benefit the construction industry and defense contractors. He notes, hoverer, that the uncertainty in the world is causing concern about the potential impact of terrorist acts on businesses. Mr. Kelley says the uncertainty in the world means “risk is up on a global basis, but premiums are down due to an oversupply of capital. Still, expansion in the global economy should be good for the insurance sector.
Public Private Partnerships (PPPs) offer opportunities for insurers due their complexity. He notes that Ironshore is in a good position to assist with construction risks, particularly liability exposures.
Mergers and acquisition (M&A) insurance is a hot product today due, in part, to the number of transactions that have occurred over the past few years, p[particularly foreign transactions. Buyers of M&A coverage want to take out contingent liability exposures, which helps conclude deals more efficiently.
Innovation is a top driver of top line growth, particularly in a low growth economy. With so much change affecting companies today, Mr. Kelley sees ample opportunity for Ironshore to help customers deal with change effectively.