Willis Towers Watson experts talking to clients and insurers at RIMS offered their quick take on the buzz from the convention floor.
In property, Dave Finnis is still using a word he coined: over-capacitized. High capacity means lower rates – for the fifth year in a row, and the competitive marketplace is enabling smart buyers to maximize coverage, often including additional protections for such perils as cyber exposure and infection diseases.
In political risks, Laura Burns points to a paradox: 2015 was one of the highest claims years ever and 2016 is set to surpass it – but with so much capital available to the insurance marketplace, rates are still soft and protection is available despite heightened risk. She notes that the real challenge for risk managers is to think strategically, because boards and the C-Suite are looking for a strategic approach to what is clearly a rising risk.
In cyber, Anthony Dagostino emphasized a similar focus on the part of top company leaders, and says while insurance is part of the answer, the pervasive exposure for just about every organization is going to demand an in-depth, concerted response based on analytics and a deep look at human behavior, not always malicious, which is behind so many data breaches.
In casualty, Joe Peiser says the buzz is about the fact that with continued capacity, it’s a buyer’s market for most – but not all. Further, changes in the marketplace mean that buyers, content as they may be with benign market conditions, may have to consider alternatives.