OLDWICK, N.J.--(BUSINESS WIRE)--Approximately one-third of insurers surveyed listed cyber risk/cyber security as the most-used word or phrase encountered in 2016, according to a new A.M. Best special report.
The Best Special Report, titled, “A.M. Best Winter 2016-2017 Insurance Industry Survey,” assessed insurers’ opinions on a number of key themes, including current issues and trends, changing market dynamics and grey and black swans. While those combined cyber phrases finished first in terms of being the most commonly used industry buzzword among the respondents (30.7%), low/negative interest rates placed second with 23.1% of responses. Increasing regulation finished third with 10.6% of respondents citing the phrase.
Those surveyed were also asked about estimates on targeted returns, with nearly a quarter (23.7%) stating that they expect returns in excess of 11% in 2017. The majority of respondents answering that question (62.6%) expect returns in the 5%-10% range, with 12% anticipating returns of between 1% and 4%.
Regarding opportunities, 31.9% cite advanced analytics (artificial intelligence) as the top one, followed by increasing use of mobile apps to sell (18.7%) and big data (18.1%). In contrast, on the threats side, Silicon Valley-backed insurtech startups were seen as the greatest threat among 16.9% of respondents.
The winter survey also indicated that 56.2% of the industry is optimistic about the economy and see improvement on the horizon. This was up significantly from A.M. Best’s spring 2016 survey, when just 7.9% of respondents perceived economic conditions to be improving.
To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=259920.
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