Insurance Sector Trends: Forecast for 2018 and 2017 Year End Review
The insurance industry faced a volatile and challenging time during 2017. Old issues continued to provide strong headwinds and crosswinds, such the continued low interest rate/investment yield environment; cybersecurity risks; regulatory pressure from global regulators; innovation and technology companies revolutionizing the market; and legacy business haunting the performance of insurers.
The significant new developments in 2017 have compounded those lingering challenges, such as Brexit in the context of the signed EU and US covered agreement; global regulators shifting from entity-based to activities-based assessments of systemic risk; healthcare and health insurance industry convergence with the CVS/Aetna deal; technology behemoths making additional moves in the insurance space; the new US federal tax reform law; and the natural and man-made disasters that caused $306 billion in economic losses in 2017.
If the insurance industry faced strong winds in past years; then 2017 was a volatile and challenging time – and 2018 will be a dramatic year as geopolitical and economic developments continue to impact the industry.
As we do every year, our Insurance Sector Trends: 2017 Year End Review and Forecast for 2018 assesses the impact and implications of major developments around the globe and offers some thoughts on what 2018 might bring to the insurance industry.
To learn more about the evolving issues that are affecting the insurance industry this year, please contact your DLA Piper relationship partner or any member of our Insurance team.