North American Property & Casualty Insurance CFO Survey #7

Hot Insurance Topics

Use of Capital — What They Say and What They PlanParticipants bet the industry will focus on M&A activity in the next 12 to 24 months. Their predictions for the market differ markedly from their own companies’ plans: investments in infrastructure and data analytics, product development, and talent attraction and retention initiatives. Strong fundamentals should position companies to compete in an increasingly sophisticated and analytics-driven market, and to anticipate and respond to change.

TRIA — Help Is Welcome but Not EssentialAlthough the federal backstop provides protection against catastrophic terrorism losses, over 70% of respondents believe its sunset would have only a minor impact on their organizations. They report their organizations proactively manage their terrorism exposure through other or complementary means.

The Key: Effective Utilization of CapitalIn an industry where capital is plentiful, if and how to deploy available capital — or return it — easily tops the charts of what matters to CFOs today.

ORSA — It’s (Likely) Coming, and We’re (Almost) Ready

While companies are taking steps to comply with the U.S. ORSA, only 40% say it is very likely to be implemented as planned in 2015. Another 37% say it is somewhat likely.

Federal Regulation of Insurance Not an Immediate ConcernAll respondents expect increased federaloversight of insurance will increase compliance costs, and they see little potential for positive effects; 71% of the respondents think mandatory federal insurance regulation is unlikely.

Management of accumulation of exposures and aggregates

Reinsurance Reliance on federal backstop

Diversi� cation

54% 40% 17%46%

The 80% of companies that say they are still developing ORSA processes and reports are likely to reap benefi ts beyond compliance.