The major legislative issues facing property casualty insurance companies today is that many legislators do not understand the business of insurance. According to Fred Karlinsky, Co-Chair, Insurance Regulatory & Transactions Practice at Greenberg Traurig, since the 2008 financial crisis, the industry is seeing significantly more corporate governance requirements on insurers. He believes there will be continued scrutiny of activities and governance of insurance companies.  He also notes that emerging risk from technologies like drones, and the sharing economy are moving faster than the legislative and regulatory process.

Flood insurance is becoming a more political issue. Hurricane Matthew did not create the losses some expected, however, there are flood policies written that are inadequate with regard to their premiums. While Mr. Karlinsky expects a reaction from FEMA and the private insurers, he believes delays in response are due to a lack of flood data.

While Mr. Karlinsky credits insurers with moving quickly on risks from emerging technologies, he believes insurers and reinsurers are unsure as to the role they will play. There are policies underwriting some of these emerging risks, but he believes courts will influence the risk going forward.

The industry always needs to be cognizant of what legislators are doing. Mr. Karlinsky advises insurers to get involved in the process. He says “One of the biggest partners in your business, whether you want them to be or not, is the Federal Government and State Government.”  So keep your finger on the pulse of those venues.

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