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, which is driving increases in workers compensation coverage.

Catastrophe losses are always a concern, tough Ms. Favinger says P&C carriers and reinsurers have the financial resources to pay claims, even after Hurricanes Florence and Michael.

Ms. Favinger notes a survey of the cyber insurance market, co-sponsored with J.D. Power. The survey looked at small businesses and individuals with regard to cyber risk. According to the survey, one in ten small businesses had a cyber event within the past year, bit only three in ten have coverage. Wearables and Smart phones present risks to nearly everyone. Ms. Favinger recommends that individuals check existing homeowners’ policies to see if they are coverers for an attack.

Looking ahead to 2019, the III will be focused on the issue of talent development within the insurance industry, creating more resilient communities, as well the flood insurance protection gap. These and other topics, such as storm severity, technology and private passenger autos, will be on the agenda for the forthcoming Joint Industry Forum on January 17 in New York.

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