P/C Execs See Growth Led by Cyber
Top executives in the property/casualty insurance industry are predicting a significant increase in the commercial lines of insurance this year. The Leader Trends survey of the industry, conducted by the Insurance Information Institute (I.I.I.) during its recent Property/Casualty Insurance Joint Industry Forum, showed that cyber is generally considered a vast, untapped market. A majority of the respondents (55 percent) said they expected growth in commercial lines to outpace the growth of personal lines in 2017, and most (88 percent) said they expected cyber to be the most rapidly growing segment of the industry.
Steven Weisbart, senior vice president and chief economist of the I.I.I., said that it is not surprising that such industries as healthcare, finance and banking, retail and communications, for which personal data is a primary resource, consider cyberrisk as a major hazard. Weisbart also sees the increasing demand for business interruption coverage as a significant factor in the growth of the cyber insurance market.
As for proposals to change the Dodd–Frank Wall Street Reform and Consumer Protection Act, 45 percent of the survey respondents said that they supported reform or elimination of the rules imposed on Systemically Important Financial Institutions. Agencies often cited as suitable targets for reform or elimination included the Federal Insurance Office (FIC), the Financial Stability Oversight Council and the Consumer Protection Bureau. PIA has led the call for elimination of the FIO, which was joined recently by the National Association of Insurance Commissioners (NAIC).