David Kodama, Senior Director for Research and Policy Analysis at PCI, speaks with WRIN.tv about the opportunities for insurers arising due to technological advances, cyber risk, natural catastrophes, telematics and the “sharing economy.” He also reviews PCI’s role in regulation, public awareness and risk mitigation.

Mr. Kodama notes that technological advances have propelled the U.S. economy. While innovations have created business opportunities, they have also created risk. The insurance industry had been asked to respond to existing risk as well as future exposures, while developing cyber insurance policies. Cyber insurance has become an opportunity for Specialty Lines insurers. He also sees new product opportunities in catastrophe risk related to flood insurance, terrorism insurance and mobile base technology risks for companies like Uber and Lyft.

There are more opportunities for public private partnerships in addressing natural catastrophe risks such as flooding, wild fires, drought and wind storms. During September, National Preparedness Month, PCI continues its efforts to inform individuals, business and communities on mitigating risk. In addition, Mr. Kodama says PCI will use recent IBA Research as a basis for addressing policymakers about nat cat risks associated with “where people live and how we build.”

PCI is part of the NAIC’s Cybersecurity Task Force, which addresses industry and regulatory guidelines for cyber security issues including procedures and protocols for potential data breaches. PCI attempts to ensure industry input into any standards created.

Transportation network companies (TNC) like Uber and Lyft are prime examples of the “sharing economy.” PCI and other industry groups lobbied for clear and consistent language in regulations and laws surrounding TNC companies.

Telematics and big data continue to be exciting areas for insurers and companies in the automotive industry. It can propel actuarial analysis to allow underwriting at the individual risk level. However, Mr. Kodama notes, developments in autonomous vehicles appear to put more of the analysis on the vehicle rather than the individual driver.

For more from the 2015 NAPSLO Convention, visit the WRIN.tv On Demand Library.

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