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

Senior executives and leaders from the P&C, personal and commercial insurance industries, life insurers, trade associations and regulators will gather to discuss trends affecting the future of the insurance sectors. insurance and reinsurance.

“Insurance leads through disruption, and we certainly have more disruption than we’ve seen in decades at this point,” said Sean Kevelighan (pictured), president and CEO of Triple-I .

“Whether it’s economic and geopolitical risk, climate risk, cybersecurity, abuse of the legal system, and even the diversity and talent of people working in the industry, we want to deepen our understanding of these problems and talk about what we can do to get through the disruption together.

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Enormous changes have rocked the insurance world in recent years, but its mandate remains unwavering: to help people take and manage risk. But Kevelighan said the way the industry does this is also changing.

“We are at a turning point in the industry where we are moving from post-disaster repair to forecasting and prevention. I think our ability to anticipate disasters is going to be a key theme,” he said. insurance company. “Prediction and prevention will enable the industry to adapt to customer needs in a riskier world.”

For Kevelighan, the word that characterizes the state and direction of the insurance industry in the midst of a volatile year is resilience. “Even amid the jolts of economic disruption, the insurance industry can sustain itself and plan for long-term risk management. This resilience allows customers to continue to transfer that risk,” he said.

The role of brokers in educating and informing clients about managing their risks will be even more critical as climate risks affect more people in more geographies than ever before. “We have seen the costs of climate risk losses rise by nearly 700% since the 1980s, with most of it attributable to the increased severity of natural disasters,” Kevelighan said.

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“We also see more and more people in danger thinking that a disaster will never befall them. When buying a property, the risk factor often doesn’t enter anyone’s mind until it’s almost too late. We need to draw more attention to some of these risks, because the seriousness of natural disasters is evident.

The CEO said this change in risk management behavior needs to be supported by a dialogue between carriers, brokers and customers. “We all need to find ways to better manage risk, predict and prevent it, as this will be essential for the future success of the industry,” he said. insurance company.

Cyber ​​in the spotlight

Cyber ​​risk is another area where the “plan and prevent” strategy will be essential. “We see many insurers starting to take this mitigating element with their customers before the insurance transaction occurs,” Kevelighan said.

Information that enables customers to understand their cybersecurity strengths and weaknesses will serve as a key line of defense and an important mitigation tool for operators. But the massive scale and impact of cyberattacks means the risks of uninsurable events are also increasing – an issue the industry must address.

Kevelighan said Triple-I plans to hold a public tabletop exercise next year to tackle cyber risks, bringing together stakeholders such as regulators, policymakers and first responders for crucial dialogue with stakeholders. insurance leaders.

“If you have a cyber incident that isn’t limited to geography or time, the transfer of risk is almost uninsurable. What then is the role of insurance companies versus governments?” Kevelighan asked. “The misperception is that insurance is the only solution for cyber risk, and there is still a long way to go from there.”

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