OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M. BestTV episode from the final day of the Property Casualty Insurers Association of America (PCIAA) conference in Hollywood, FL, insurance leaders said premiums from cyber insurance could quadruple in four years, according to some estimates, which has insurers, brokers and reinsurers focusing on coverage. Click on http://www.ambest.com/v.asp?v=pci51015 to view the entire program.
Throughout this year’s conference the one topic repeatedly discussed was cyber liability and where is it headed, as the market is innovating so rapidly.
“The industry has known for years that cyber hacking and liability are real vulnerabilities,” said David Sampson, president and chief executive officer, PCIAA. “With this in mind, the question before the industry is, how do we handle it and still cultivate the new business opportunities in this cyber era?”
“Today the market is transitioning from a risk that people try to prevent to a risk people try to manage, which is a really big difference,” said Ben Walter, chief executive officer, Hiscox USA. “If there is a something that you believe you really can prevent, then you might not insure against it. However, when it comes to cyber breaching, everyone knows that it is something you can’t totally prevent, so it is looked upon as a risk that needs to be managed.”
In addressing the issue of premiums in the industry, Gerry Skalka, senior vice president, Munich Reinsurance America, stated, “the estimate of industry premiums is about $2.75 billion of which 90% is in the United States, and over a five-year timeframe it is estimated to be anywhere from $7.5 billion to $10 billion.”
Other people that appear in this episode:
- Robert Gordon, senior vice president, policy development and research, PCIAA;
- Bryon Ehrhart, chief executive officer, Aon Benfield; and
- Jim Wallace, incoming chairman, PCIAA and head of GuideOne.
Full-length interviews are available as well. Go to http://www.ambest.tv/pci to see all the interviews conducted at the conference.
Recent episodes of A.M.BestTV include:
- Insurers Adjust to the Expanding Role of Regulation: At the Property Casualty Insurers Association of America (PCIAA) conference in Hollywood, FL, insurance leaders said regulations have taken more of their attention, including regulations that impose banking-type restrictions on insurers, a tightening of cyber protection requirements and a focus on insurers' financial volatility: http://www.ambest.com/v.asp?v=pci41015.
- Insurers Focus on Building Customer Experience: At the Property Casualty Insurers Association of America (PCIAA) conference in Hollywood, FL, insurers are adopting new systems and strategies to mirror customer centric focuses, many of which were pioneered in other industries: http://www.ambest.com/v.asp?v=pci31015.
- Insurers Look to 'Expand the Boundaries of Insurability’: At the Property Casualty Insurers Association of America (PCIAA) conference in Hollywood, FL, insurance leaders say only by offering innovative coverages and products will insurers be able to overcome slow growth. Areas ripe for new coverage include ride sharing, cyber risk, terrorism and flood: http://www.ambest.com/v.asp?v=pci21015.
- P/C Insurers Feel The Cyber Heat: At the Property Casualty Insurers Association of America (PCIAA) conference in Hollywood, FL, insurance leaders say insurers are scrambling to stay ahead of a widening spectrum of possible cyber disruptions, including threats to automobile systems, aggressive actions by regulators and the risks of exposing insurers’ own data: http://www.ambest.com/v.asp?v=pci11015nc.
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