Latest Studies May 2013
1. CYBER RISKS: THE GROWING THREAT
Robert Hartwig and Claire Wilkinson
Insurance Information Institute, New York, NY. http://www.iii.org; 22 pages
APRIL 01, 2013
This report by Robert Hartwig, president of the Insurance Information Institute, and Claire Wilkinson, replete with statistical graphs and charts, reviews the growing threat of cyber attacks that businesses in all major industry sectors face. Targets of recent attacks have ranged from large U.S. financial institutions, to energy facilities, to media and technology companies, as well as online social networking service providers. The report concludes that despite the fact that cyber risks and cyber security are widely acknowledged to be a serious threat, a majority of companies today still do not purchase cyber risk insurance, though this is changing. Recent industry analyses suggest that more companies are now purchasing cyber coverage and that insurance has a key role to play as companies and individuals look to better manage and reduce their potential financial losses from cyber risks in future. The paper is posted on the Web at http://www.iii.org/white_papers/cyber-risks-the-growing-threat.html
2. 2012 QUESTIONABLE INSURANCE CLAIMS REPORT
National Insurance Crime Bureau, Des Plaines, IL http://www.nicb.org; Page N/A
FEBRUARY 15, 2013
According to the National Insurance Crime Bureau (NICB)'s 2012 questionable claims (QC) referral reason analysis, over the period from 2010 to 2012, there was a 26.7 percent increase in QCs referred to the NICB, going from 91,797 in 2010 to 116,268 in 2012—a new record. In 2011 the total was 100,450. Questionable claims are those claims that NICB member insurance companies refer to the NICB for closer review and investigation based on one or more indicators of possible fraud. The results are highlighted on the Web at https://www.nicb.org/newsroom/news-releases/rise-in-questionable-claims
3. 2013 INSURANCE BAROMETER STUDY
Norah Denley
LIMRA International, Windsor, CT http://www.limra.com; 30 pages
APRIL 16, 2013
The third annual Insurance Barometer report seeks to understand consumer perceptions, attitudes, and behaviors with regard to life insurance and other financial products. New issues addressed in 2013 include purchase channel preference, the impact of life events on life insurance shopping behavior and alternative distribution partnerships. The study found that two thirds of consumers are concerned about money for a comfortable retirement. One third of consumers believe they do not have enough life insurance. Eighty-six percent of consumers would use the Internet to research life insurance before purchasing. Highlights are posted at http://www.limra.com/Posts/PR/News_Releases/Nearly_20__of_Consumers_Willing_to_Purchase_Life_
Insurance_from_a_Retail_Outlet,_Such_as_Warehouse_Club_or_Superstore.aspx
4. 2013 REINSURANCE MARKET OUTLOOK - APRIL 1 UPDATE
Aon Benfield, Chicago, IL http://www.aon.com; 8 pages
APRIL 02, 2013
Aon Benfield’s report covering April 1, 2013 renewals reveals that alternative market capital flows and record reinsurance capital drive materially better terms for reinsurance buyers. Traditional reinsurance capital grew 11 percent during 2012, to end at $505 billion. The report is posted on the Web at http://thoughtleadership.aonbenfield.com/Pages/Home.aspx?Report
Category=Reinsurance%20Market%20Outlook
5. 25-YEAR SUMMARY OF US MALPRACTICE CLAIMS FOR DIAGNOSTIC ERRORS 1986–2010: AN ANALYSIS FROM THE NATIONAL PRACTITIONER DATA BANK
Ali S Saber Tehrani; HeeWon Lee; Simon C Mathews; Andrew Shore; Martin A Makary; Peter J Pronovost; David E Newman-Toker
BMJ Quality and Safety Online ; Page N/A
APRIL 22, 2013
A study of 25 years of medical malpractice claims data by researchers at John Hopkins University revealed that “among malpractice claims, diagnostic errors appear to be the most common, most costly and most dangerous of medical mistakes.” Such claims accounted for $38.8 billion in claims payouts, or 35.2 percent of payouts. They accounted for 28.6 percent of the claims examined and were the leading cause of claims-associated death and disability. The researchers examined medical malpractice claims from the National Practitioner Data Bank from 1986–2010 A release highlighting the findings is posted at http://www.hopkinsmedicine.org/news/media/releases/diagnostic_errors_more_common_costly_and_harmful_than_treatment
_mistakes
6. CYBERSECURITY
U.S. Government Accountability Office, 441 G Street NW, Room 7149 Washington, DC 20548; 112 pages
FEBRUARY 13, 2013
This report provides the results of a study conducted by the Government Accountability Office (GAO) to identify challenges faced by the federal government in the area of cybersecurity. The GAO found that "federal agencies have reported increasing numbers of cybersecurity incidents that have placed sensitive information at risk, with potentially serious impacts on federal and military operations. The number of incidents reported by federal agencies to the U.S. Computer Emergency Readiness Team has increased 782 percent from 2006 to 2012." The report is posted on the Web at http://www.gao.gov/products/GAO-13-187
7. FIRST QUARTER COMMERCIAL P/C MARKET SURVEY
Council of Insurance Agents & Brokers, 701 Pennsylvania Avenue, NW, Suite 750, Washington, DC 20004-2608;http://www.ciab.com ; Page N/A
APRIL 18, 2013
Commercial lines prices rose the first quarter of 2013, according to the Council of Insurance Agents & Brokers’ quarterly Commercial P/C Market Index Survey. On average, pricing rose at a rate of 5.2 percent, compared with 5 percent in the fourth quarter of 2012. A news release with a link to the full report is posted at http://www.ciab.com/news.aspx?id=4098
8. GROWTH OPPORTUNITIES FOR THE AMERICAN WORKER: HOTTEST GROWTH INDUSTRIES BY DECADE 1890-2020
Philip Auerswald
Zurich North America, Schaumburg, IL http://www.zurichna.com ; 42 pages
APRIL 16, 2013
A new infographic from Zurich North America highlights the outlook for major industrial sectors, based on its research on growth opportunities for American workers. Its analsysis suggests that manufacturing, energy and agriculture industries will once again become hot industries. The infographic is posted at http://www.businesswire.com/multimedia/home
/20130416006186/en/
9. MARKETPLACE REALITIES
Willis North America, New York, NY http://www.willis.com ; 27 pages
APRIL 01, 2013
The spring update of the annual review for North American insurance buyers and risk managers, features line-by-line insights and price predictions. Willis expects commercial insurance buyers to experience moderate upward pressure on rates through the remainder of 2013. The report is posted at http://www.willis.com/documents/Publications/Marketplace_Realities
/MarketplaceRealities2013SpringUpdate_v4.pdf
10. PROPERTY CASUALTY FORECAST & ANALYSIS
Conning, Hartford, CT;http://www.conning.com ; Page N/A
APRIL 11, 2013
With 2012 preliminary results now showing the effects of sustained improvement in profitability, Conning forecasts continued strong net premium growth and a substantially improved combined ratio for 2013. The forecast improvement is based on sustained pricing increases and an expectation of a normal level of catastrophe losses, according to the most recent edition of Conning’s forecast of the property/casualty sector. The report is available by subscription from Conning by calling (888) 707 1177 or from the company’s website at www.conningresearch.com. A news release highlighting the findings is posted at http://www.conning.com/pressrelease-detail.aspx?id=8224
11. THE STATE OF THE LIFE INSURANCE INDUSTRY
National Association of Insurance Commissioners, Kansas City, MO
http://www.naic.org ; Page N/A
MAY 01, 2013
Part one of a series on the life insurance industry by the National Association of Insurance Commissioners (NAIC) traces the history of life insurance from the 18th century to the present, and explores risk management in the context of the changing and complex market. The second installment features "Life Insurer Balance Sheets" and "Implications of Economic and Market Changes on Life Insurers" sections. The third installment includes “Current and Emerging Trends in Life Insurance Products" and "Technology.” The first installment is posted at http://www.naic.org/documents/cipr_130404_white_paper_state_life
_insurance_industry_implication_industry_trends.pdf
12. TERRORISM RISK INSURANCE: ISSUE ANALYSIS AND OVERVIEW OF CURRENT PROGRAM
Congressional Research Service, Washington, DC;http://www.crs.loc.gov ; 15 pages
FEBRUARY 01, 2013
This paper, prepared for members of Congress, presents an issues analysis and overview of the Terrorism Risk Insurance Program (TRIA), established following the September 11 terrorists attacks to provide a federal backstop for terrorism insurance losses. The program, which was reauthorized in 2007, is currently slated to expire at the end of 2014 and would need to be reauthorized to continue. In addition to discussing the specifics of the current TRIA program, the paper provides background information on terrorism insurance in the U.S. and overseas, and describes the market for terror insurance coverage before and after TRIA. The paper is posted at www.fas.org/sgp/crs/terror/R42716.pdf