40 Insurance Trends for 2011

By Claude Penland,Associate of the Casualty

Actuarial Societywww.InsTrends.com

One

• 40. Bermuda market may be getting crowded, though Flagstone Re’s Chief Executive Officer said to not count Bermuda out.

• 39. Worldwide Takaful (Islamic insurance) market is growing fast.

• 38. Microinsurance market has promise in developing countries, though it may take an enormous effort.

Two

• 37. The values of commercial-backed securities on insurance companies’ balance sheets may need to be marked down.

• 36. Consider these ten emerging risks for insurance and reinsurance companies. Reflect on the World Economic Forum’s list, as well as Lloyd’s.

Three

• 35. Look out for insurance brokers with guns on the high seas.

• 34. Actuarial jobs are the #3 career, according to CareerCast.

• 33. High-risk health insurance pools are only attracting two percent of expected consumers.

• 32. There will be a number of insurance technology challenges, including cloud computing and mobile applications.

Four

• 31. Obesity costs $300 billion per year, according to the Society of Actuaries.

• 30. What is the future of insurance regulation? Actuaries consider that question.

• 29. Alternative pharmacy networks are emerging, according to Milliman.

• 28. The annual calls for the National Flood Insurance Program to be privatized have begun.

Five

• 27. Beijing, China automobile traffic is among the worst in the world. Microsoft Research Asia is studying how cabbies get around for better ideas about efficient driving.

• 26. MileMeter’s pay-as-you-drive metered car insurance is growing in popularity.

Six

• 25. Health record proposal to support personalized, predictive, preventative and participatory medicine.

• 24. Insurance mergers and acquisitions are expected to increase globally in 2011.

• 23. Office of Personnel Management plans to build a healthcare claims database.

• 22. Disgrace insurance for sponsors is now available to protect their reputations.

Seven

• 21. States are borrowing from the US federal government to pay unemployment insurance.

• 20. Property and casualty insurance companies increase their use of predictive analytics.

• 19. Some insurance runoff specialists are growing up fast.

• 18. Rainfall contracts launched by the CME Group.

Eight

• 17. There are not enough qualified insurance regulators in the United Kingdom. Solvency II is contributing to that employee shortage.

• 16. United States insurance companies lose 6,000 jobs.• 15. The combination of international financial

reporting standards (IFRS) and Solvency II will place strain on insurance companies’ balance sheets.

Nine

• 14. Institute of Actuaries of India has plans to expand throughout Asia.

• 13. US companies’ health plan “grandfathering” with regards to health “reform” is still in flux.

• 12. Medicaid costs anticipated to increase a lot in several US states.

• 11. New Hampshire is pushing for more locally-domiciled insurers.

Ten

• 10. CEO’s, CFO’s, Chairmen, Presidents, CIO’s, General Counsels and COO’s are very well paid among the largest ten property and casualty, health and life insurers: a compensation comparison.

• 9. The Asian reinsurance market could consolidate.

• 8. Virtual insurance, such as crop insurance in FarmVille, might be on the rise.

Eleven

• 7. Insurance claims adjusters and lawyers are using social networks for investigations.

• 6. Sinkholes in Florida are becoming an insurance problem.

• 5. Medical malpractice costs increasing.• 4. Automobile insurance claims

costs in the United Kingdom are rapidly rising.

Twelve

• 3. Saudi Arabian health insurance premiums increasing 30% per year.

• 2. Mortality improvements may slow within a few decades.

• 1. The Canadian insurance-linked securities market should grow.