Insurance Industry News & Views - January 12 2022
David Marlett, PhD, CPCU is a Professor in the Department of Finance, Banking and Insurance at Appalachian State University and the Managing Director of the Brantley Risk & Insurance Center. The risk management and insurance program (RMI) at Appalachian is recognized as a Global Center of Insurance Excellence (GCIE) and as a top 10 RMI program in the U.S. by Business Insurance magazine. The majority of Dr. Marlett’s research is focused on managing catastrophic risk. Prior to entering the doctoral program at Florida State University, David worked as a commercial lines underwriter for USF&G in Tampa. We caught up with Dr. Marlett to ask a few questions about innovation in commercial insurance and how commercial lines insurers are adapting to inflation, cyber threats, and the complex risks connected to climate change.
David, the commercial insurance industry continues to experience disruption due to various market factors (the pandemic, a hardening market, new risks, etc.). What market trends and factors do you feel are having the biggest impact on commercial lines insurers today?
Overall, the commercial insurance industry weathered the pandemic remarkably well (so far). There is still uncertainty over when the pandemic will end and claim litigation. The COVID related business interruption claims are still playing out in the legal system; however, it appears most insurers will not be paying damages unless there is a significant reversal in the trend of judgements in their favor.