Cyber risk/cyber security has been identified by roughly one-third of insurers as the most used word or phrase in the industry in 2016.
According to a Best Special Report, titled A.M. Best Winter 2016-2017 Insurance Industry Survey, 30.7% of respondents chose the combined “cyber” phrases as the most commonly used industry buzzword; while 23.1% of respondents cited “low/negative rates,” followed by “increasing regulation,” at 10.6%.
The survey sought the insurers’ opinions on a range of key themes, including current issues and trends, changing market dynamics, and grey and blank swans, A.M. Best said.
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When asked about estimates on targeted returns, 62.6% of respondents said they expect returns within the range of 5% and 10% in 2017; 23.7% said they expect returns in excess of 11%; and 12% anticipated returns of between 1% and 4%.
In terms of opportunities, the majority cited advanced analytics (artificial intelligence), at 31.9% of the respondents. This was followed by increasing use of mobile apps to sell, at 18.7%; and big data, at 18.1%. In contrast, Silicon Valley-backed insurtech start-ups were identified as the biggest threat among 16.9% of respondents.
The survey also revealed that 56.2% of respondents were optimistic about the economy and see improvement on the horizon, a significant rise from just 7.9% of respondents in A.M. Best’s 2016 survey.
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