APCIA head warns of challenges ahead for insurance market
The property/casualty insurance industry is facing a critical time, David Sampson, president and CEO of the American Property Casualty Insurance Association (APCIA), told delegates at the body’s annual event in Boston this week in his opening speech.
Sampson said that the merger of the American Insurance Association and the Property Casualty Insurers Association of America, which took place in January this year, had happened at an opportune moment for the industry.
Sampson said that trust in Congress, the Presidency, the Supreme Court, the military and the media was at a historic low, according to recent polling, although he pointed out that trust in job-creating companies seemed to be at higher levels than before. The industry therefore has to be united in facing any issues, he said.
He added that some of the challenges facing the industry include tort-related costs heading upwards; jury awards that have risen 150 percent, and increasing costs on many levels for the insurance industry.
“The political and cyber pressures that the industry faces are requiring APCIA to recalibrate the way we look at challenges and opportunities, to be forward-looking, proactive, leaders,” Sampson told delegates.
“The new APCIA is building an open, collaborative culture, from our staff to all our member companies. It incorporates our new mission and vision and blends it with our predecessor organisations’ reputations for tenacity, responsibility and creativity.”
Sampson said that APCIA was committed to being an organisation where staff were empowered to problem-solve and to take smart risks in the service of its members, and ultimately for the American consumers who rely on their products.
He added that APCIA is financially strong and maintains a broad bipartisan reach in Washington. Sampson stated that APCIA will be urging Congress to pass an extension of the Terrorism Risk Insurance Act, which expires in 2020, which has widespread support from the insurance industry.
Sampson also stressed that the APCIA is having to deal with a world that has seen increased levels of volatility and that simply reacting in the aftermath of bad situations was no longer enough for insurers.
“We must lean forward and be proactive; to identify and articulate the ideal policy outcome in terms of the marketplace, the government regulatory role and from a legal standpoint.
“We must also frame and shape the debate, understand the hurdles and opportunities and be armed with the messaging that resonates with policymakers, the media and consumers,” he concluded.
