Triple-I CEO on how insurance will ‘lean into a changed world’ in 2023

Executives and leaders from property and casualty insurance, personal insurance, commercial insurance, life insurance companies, trade associations and regulatory bodies gather to discuss the trends impacting the future of the insurance and reinsurance industry.

Triple-I President and CEO Sean Kevelighan (pictured) said:

“Economic and geopolitical risks, climate risks, cybersecurity, abuse of the legal system, as well as the diversity and talent of the people working in our industry, we need a better understanding of these issues and what can be done to overcome the crisis. We want to discuss how we can confuse together.

read more: Triple-I seeks third-party litigation funding

The insurance industry has changed a lot in the last few years, but our mission to help people take and manage their risks remains steadfast. But Keverigan said the way the industry is changing is also changing.

“We are at a critical point in the industry moving from post-disaster remediation to prediction and prevention. I think our ability to stay ahead of catastrophes will be a key theme,” he said. Insurance business“Predicting and preventing will enable the industry to adapt to customer needs in a riskier world.”

For Kevelighan, the word that characterizes the state and focus of the insurance industry in a year of uncertainty is resilience. “Even in economic turmoil, the insurance industry is able to sustain itself and plan to manage risk for the long term. Its resilience allows customers to continue to transfer that risk,” he said. said.

As climate change risks affect more people in more regions than ever before, the role of brokers in educating and informing clients about risk management becomes even more important. “Since the 1980s, the cost of loss due to climate risk has increased by nearly 700%, mostly due to increasing severity of natural disasters,” Kevelighan said.

read more: Revealed – What’s Tearing Florida’s Homeowners Insurance Market

“Also, more and more people are living a life of peril, thinking that catastrophe will never happen. The severity of natural disasters is so obvious that some of these risks need to be brought to their minds.”

The CEO said this behavioral shift in risk management needs to be supported by a dialogue between carriers, brokers and customers. We need to find ways to manage, predict and prevent,” he said. Insurance business.

Cyber ​​in the spotlight

Cyber ​​risk is another area where a “predict and prevent” strategy is key. “We see a lot of insurers starting to put that mitigating factor into their customers before the insurance transaction takes place,” he said.

Information that helps customers understand their cybersecurity strengths and weaknesses serves as an important line of defense and an important mitigation tool for carriers. However, the scale and impact of cyberattacks means that the risk of uninsured events is also increasing. This is what the industry needs to address.

Triple-I will host a public tabletop exercise next year to address cyber risks, Kevelighan said, bringing stakeholders, including regulators, policymakers and first responders, into critical dialogue with insurance industry leaders. said he plans to participate in

“In the event of a cyber incident that is not limited to geography or time, risk transfer is largely uninsurable. So what is the role of insurers and governments?” asked Keverigan. “It is a misconception that insurance is the only solution to cyber risk and that there are still ways out of it.”

Leave a Comment