The Insurance Information Institute (I.I.I.) conducted it’s 19th annual Property/Casualty Insurance survey and found Cyber-Crime is exposing businesses, both in the U.S. and abroad to greater levels of liability than ever before, which is why the market is far from saturated.
The survey’s key findings are below:-
- 80% of executives said they see Cyber insurance as a major growth area for commercial insurers
- 78% expect industry capacity (as measured by policyholder surplus) to increase in 2015
- 72% believe the federal government is interested in further expanding its regulatory oversight of insurers
- 56% believe the economy will accelerate; 6% believe it will decelerate and 38% believe it will remain about the same
- 92% believe that M&A activity among insurers/reinsurers increase in 2015? For example the XL Group’s acquisition of Catlin for $4.2billion
The U.S. economy appears to be picking up steam, which translates into more economic activity and the addition of capacity. This means more businesses and people will need more insurance, implying further increases in insurance premium volume,” said Dr. Steven Weisbart, senior vice president and chief economist with the I.I.I. “Moreover, business bankruptcies in 2014 dropped below their lowest level in the last two decades, so the erosion of commercial accounts will continue to ease. As the economy inches closer to full employment, we may begin to see wage increases that outpace inflation for the first time in nearly a decade, primarily affecting the workers compensation line. Further, the low-interest rate climate, which has lasted longer than virtually everyone thought likely, is expected to begin a return to normality sometime in the second half of 2015. Absent devastating natural catastrophes, 2015 could be another profitable year for insurers
The sponsoring organizations of the Forum represent a broad range of insurance interests and audiences and include: ACORD, American Insurance Association, the Association of Bermuda Insurers and Reinsurers, The Geneva Association, Insurance Institute for Business & Home Safety, Insurance Information Institute, Insurance Institute for Highway Safety, International Insurance Society, National Association of Mutual Insurance Companies, National Council on Compensation Insurance, National Insurance Crime Bureau, Property Casualty Insurers Association of America, Property & Liability Resource Bureau, Reinsurance Association of America, The Institutes and Verisk Analytics.
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