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Weekly News Roundup, May 24

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In this week's news will talk about Swiss Re on the AI risks facing the health sector, Pet insurance market set for double-digit growth, and much more…

SEC turns up heat on cybersecurity, boosting importance of insurance line

Two actions by the Securities and Exchange Commission this week on cybersecurity oversight -- a big enforcement settlement and an agency statement reinforcing how public companies can comply with new rules – emphasize the importance of cybersecurity insurance, brokers and lawyers said.

The SEC on Wednesday imposed a $10 million fine on The Intercontinental Exchange, the parent company of the New York Stock Exchange, for failing to report in a timely way an April 2021 cyber breach, violating a longstanding regulation requiring disclosure to the SEC.

The previous day, the director of the SEC’s Division of Corporate Finance, Erik Gerding, released a statement in which he explained how public companies can determine whether a cyberattack has a material impact on a firm and must be reported to the SEC under new rules the agency approved last summer.

Swiss Re on the AI risks facing the health sector

The health and pharmaceuticals sector will take the hardest hit from the adverse effects of artificial intelligence (AI) over the next 10 years, according to a new report from Swiss Re Institute.

The research studied the emerging risks surrounding AI in 10 industries, exploring the probability and severity of AI-related loss incidents due to cyberattacks, data bias, and algorithmic and performance-related risks, among others.

While the IT services sector will be most affected by AI risks, that is set to change as technology use becomes more widespread across all industries like mobility and health, said Christoph Nabholz, chief research and sustainability officer of Swiss Re.

APCIA pushes for reforms in action day

The American Property Casualty Insurance Association (APCIA) convened for its Legislative Action Day this week, making a significant push for policy change.

Among the focal points of discussion was the pervasive issue of legal system abuse, which significantly impacts insurance accessibility and affordability nationwide. Neil Wienecke, APCIA’s senior vice president of federal government relations, underscored the detrimental effects of plaintiff lawyers’ abusive practices, stressing how unnecessary litigation drives up costs for consumers across various sectors, from essentials like gas and groceries to insurance premiums.

In addition, the event served as a platform to champion initiatives aimed at bolstering mitigation and resilience efforts, essential for fostering sustainable communities and potentially leading to more accessible and affordable insurance coverage for consumers. Central to these efforts is the reauthorization of the National Flood Insurance Program (NFIP), with APCIA advocating for reforms to expand consumer choice through private market expansion, ensuring stability for the millions reliant on NFIP coverage.

Revealed - top cyber insurance companies in America for 2024

Insurance Business America (IBA) has unveiled its list of the top US cyber insurance companies for 2024.

To identify the leading cyber carriers, IBA engaged industry experts in a 15-week evaluation process. This involved in-depth interviews with specialist brokers and surveys distributed to thousands within IBA’s network, aiming to capture insights on current market preferences and offerings.

Brokers were asked to highlight the most critical features of a cyber insurance policy and rate their experiences with various carriers based on these attributes.

The evaluation criteria included coverage options, policy flexibility, claims handling efficiency, pricing, and the overall quality of the products provided.

Pet insurance market set for double-digit growth

While the pet insurance market was valued at $10.1 billion in 2023, a report from Allied Market Research revealed that it is projected to reach $38.3 billion by 2033, growing at a compound annual growth rate (CAGR) of 14.5% from 2024 to 2033.

The increase in the number of pet owners and their willingness to spend on pet healthcare is driving demand for pet insurance. The trend of pet humanization and the strong emotional bond between pet owners and their pets are also contributing factors.

Additionally, the high costs of veterinary care, including treatments for chronic and acute illnesses, are making pet insurance appealing, particularly accident and illness policies that cover a wide range of conditions. Advancements in pet healthcare technology, such as telemedicine and wearable devices, are expected to create new opportunities for pet insurance providers.