Credit rating agency AM Best believes that high competition in traditional lines is forcing London market insurers to look for growth in emerging risk areas such as cyber, which can only be good for risk managers. But the credit ratings agency is not sure that insurers have the data needed to properly price such risks and will therefore ‘monitor closely’ potential aggregation risk and whether companies have strict loss limits in place.
The big challenges facing risk professionals in the communications, technology and media (CTM) sector came under the microscope this week at an invite-only conference hosted in Amsterdam by the global CTM practice of JLT. Speakers representing specialist underwriters, brokers and risk managers from around the world explored the diverse emerging risk issues affecting the comm-tech sector and specifically how well carriers can respond innovatively to a dynamic risk landscape when rates continue to spiral downwards
The insurance industry is willing and able to underwrite the risk of drones to facilitate the fledgling technology’s benefits despite a lack of regulatory clarity over its use.
A new report by Swiss Re rates de-globalisation, large nat cats, the ‘great monetary experiment’ and the ‘Internet of Things’ as the most potentially devastating emerging risks facing the risk transfer industry and consequently the companies it serves.