WRIN.tv speaks with David Sampson, President and CEO of the Property Casualty Insurers Association of America (PCI), about trends in insurance regulation, the new Trump administration, the National Flood Insurance Program (NFIP) and growth in cyber and energy-related sectors.
Mr. Sampson believes the industry had reached a “tipping point” In 2016 with regard to State insurance regulators overstepping their authority. PCI filed lawsuits on behalf of its members to stem the tide in 2016, and Mr. Sampson believes there may be more legal action in the future. At the Federal level, there is concern about global regulatory convergence.
With the new Trump Administration taking over in Washington DC, Mr. Sampson see movement on several legislative issues that had stalled, including Dodd-Frank reform and tax reform. According to Mr. Sampson, the industry needs to “define what success looks like” and “speak with one voice” on these issues. In addition, he believes there will be changes in authority at the Federal Insurance Office (FIO). Looking ahead to the re-authorization of the National Flood Insurance Program (NFIP), Mr. Sampson sees movement on the Bill early in 2017. He believes the new Bill will be more favorable to private market participation.
Mr. Sampson points to cyber and the increased awareness of the risks to businesses and individuals as a potential growth area for property casualty insurers. As technology advances continue, he believes the insurance industry needs to consider its relevance to the balance sheets of technology companies. He also believes growth in the Energy industry will support growth in related insurance products as well.
For more on issues facing the property casualty insurance industry, visit the PCI website.