The same low interest rates that are sustaining the economy’s record-long recovery are increasingly becoming a pain point for the insurance industry. The persistence of tissue-thin interest rates has upended insurers’ traditional assumptions about investing premium income in Treasuries and other safe assets to create reserves for losses and to earn a profit. Low investment returns, along with the effects of more violent weather which has further taxed the insurance industry’s collective resources, are affecting carriers’ customers, including industrial companies.
Already, many industrial companies are paying sharply higher premiums for cyber security policies and those that cover their directors and officers Basic liability coverage also is going up, as are other types of insurance. Perhaps worse, many carriers no longer are insuring against many types of risk.
Because insurance typically is not high on the agenda for most industrial companies, many companies may not be aware of the potential risks and costs they may face in this time of change. They also may not be aware of how to assess whether they are over-insured or under-insured, and how they might maximize their insurance spending dollars.
In a special session at IndEx 2020, experts from AIG, Chubb, CNA, Warburg Pincus and Corporate Risk Solutions will discuss the steps that operators should take to protect themselves. They will also cover how over-insurance and under-insurance, which are common among industrial companies, can be avoided. This valuable session is one you won’t want to miss.