The insurance industry’s programs business continues to deliver value through product innovation. Today, insurance programs is a $40-$50 billion premium market, driven by pecuniary motivation. Insurance carriers are partnering with program administrators (PAs) and managing general agents (MGAs) to provide capacity for capturing new business in non-commodity classes of business. The outlook for sustainable growth through 2017 is positive, as carriers seek profitability in specialty line sectors of the marketplace.
Within the expansive global entertainment industry, film production is one of the most prominent sectors reaching into every corner of the world. Producers filming outside of the U.S. can face a jurisdictional risk, exposing production companies to the potential for significant loss from political risk and or political violence events. The increasing terror activity and political turmoil around the world are raising awareness of the need for comprehensive insurance protection in response to these emerging risks.
Individual active shooter incidents, including acts of terror, have soared in frequency in the United States over recent years challenging businesses and institutions to face unprecedented exposure to an emerging risk. In addition to adequate insurance coverage, timely and efficient response can be a paramount mitigating factor, enabling the targeted entity to withstand attack repercussions and facilitate operational recovery. An insured’s access to crisis management services and resources can be critical.
In August 2016, the Federal Aviation Administration (FAA) issued new drone regulations for commercial operators. FAA reported that more than 600,000 unmanned aerial systems (UAS) – or drones – are expected to be in operation by the end of this year. At issue is the FAA’s intent to integrate commercial, non-military UAS into the national air space. Drone activity in an already complex, busy air space will instigate new risk exposure realities for commercial drone operators.
The impact of natural catastrophe losses on 2nd quarter earnings was the insurance story of the summer of 2016. Virtually every segment of the insurance industry, from primary carriers and reinsurers to non-traditional market capital such as ILS funds, suffered sharp financial losses as a direct result of unprecedented natural catastrophic events worldwide.