Share on Facebook Share on Twitter Share on Google+ Share on Linkedin WRIN.tv speaks with Arthur Dougherty, SVP at Holborn, about new technologies, terror risk and emerging markets in cyber risk, flood and mortgage insurance. Hurricane Matthew could have had a big impact on the reinsurance market, but it changed course and the size of the loss will not have an effect on the market. While some cedents may have significant losses, from a market standpoint, it’s a nonevent. Mr. Dougherty says Holborn sees the market continuing to soften “slightly” (5-10%). “Data is king” and a lot of money is spent to have it. Mr. Dougherty says everyone in the industry is looking to find data and correlation to underwriting results that will improve their understanding of risk and enhance their underwriting decisions. After 9-11, terrorism risk caused a shift in the marketplace. Since then, the insurance and reinsurance market has grown more comfortable in their understanding of the risk. Capacity for terror insurance coverage has grown immensely and prices have come down to a reasonable level. The cover is built into multiline policies, treaty or catastrophe reinsurance. While TRIA takes care of the top layer on severity, there is new concern about frequency. Mr. Dougherty says reinsurance is there to make sure coverage can be secured. “New risks are all over the place.” Mr. Dougherty notes that cyber risk is one of the largest among emerging risks, as is flood, depending on the National Flood Insurance Program (NFIP) and the Biggert-Waters Flood Insurance Reform Act. He sees potential opportunities for the private flood insurance market. Mortgage insurance has grown as a market as well, with Fannie Mae and Freddie Mac buying coverage from the reinsurance market. For more from the 2016 PCI meeting in Dallas, visit the WRIN.tv On Demand Library.