There was no shortage of new products launched by the insurance industry in 2015. Cyber, a risk that has consistently seen a lot of activity over at least the last several years, continued to be on the top of the industry’s radar. Other segments insurers focused on included recreational boating, financial services, and energy and technology-related tools.

Read on for a complete list of products introduced in the top markets of 2015:

Cyber

There were too many new products to name in the cyber segment this year, but the real story behind new cyber coverages was insurers’ focus on developing more niche-specific cyber options.Data Security

One such niche was the high net worth space.

Privilege Underwriters Reciprocal Exchange (PURE) a high-net worth insurer, partnered with security firm Concentric Advisors in June to offer a cyber program designed to help individuals and families better assess, prevent, detect and respond to threats.

Experts expect to see more cyber products being developed on the high-net worth side.

“We’re looking at high net worth individuals as a more of a business exposure than as a consumer exposure,” said Matt Cullina, president and CEO of IDT911, a cyber breach mitigation and response company that works with numerous insurance carriers. “There’s certain homeowners insurance coverages now that are looking to add cyber type insurance offerings.”

Small business is also a segment where insurers are trying to grab more cyber market share.

“It appears that small business insurance purchasers are realizing they are in as much jeopardy for a breach as their larger counterparts,” said Steve Haase, president and CEO of InsureTrust.

Haase said small businesses are also finding cyber policies are valuable – offering risk management services they may not otherwise have access to – and affordable.

“Small companies have found that cyber insurance is a bargain,” he said. “Prices have generally come down from where they were 5 years ago and coverage has become cutting edge.”

ISO released cyber insurance coverage options for small- and mid-size businesses in March as optional endorsements to the ISO Businessowners Program.

Main Street America Group also launched a cyber risk protection product for “main street” businesses in 19 states across the country.

Other segment-specific cyber products this year included:

Recreational Boating

Insurers weren’t afraid to get in the water with the recreational boating segment this year.

It may signal a new outlook from insurers on the traditionally risky segment as boating-related accidents were down 14 percent in 2013, according to the U.S. Coast Guard. The total reported recreational boating accidents also decreased 10 percent from 2012 to 2013.

boat trailer motorboatOr insurers could have been responding to the increase in overall boating sales. A report from the National Marine Manufacturers Association found that new boat sales were up .5 percent in 2014; new traditional powerboat sales increased 6.4 percent and new sailboats sold at retail increased 33.9 percent. In addition, personal watercraft sales increased 21.6 percent and total new boat imports were up 7.2 percent, totaling $2.3 billion, according to the NMMA’s 2014 Recreational Boating and Statistical Abstract.

“Americans are taking to the water: 35.7 percent of the U.S. adult population – 87.3 million Americans –participated in recreational boating at least once in 2014,” said the report.

Whatever the reason, insurers have definitely taken notice of the space. Some of the notable products launched this year include:

  • ACE introduced a new online tool to generate quotes for boats in less than four minutes. The ACE EZQuote portal is available through its ACE Recreational Marine Insurance business for almost all types of boats less than 27 feet in length.
  • Ironshore launched the Ironshore Premier Watercraft program, which offers insurance exclusively through the National Boat Owners Association. Coverage is available to watercrafts valued below $750,000.
  • XL Catlin began covering yachts of all sizes and created a larger underwriting and claims team to cover yachts valued from $50,000 to $50 million.
  • Recreational boat insurer SkiSafe Insurance expanded its program to cover sailboat risks with live aboard exposures.
  • Norman-Spencer Agency’s Marine Insurances division launched its TradeWinds Yacht Insurance Program for yachts up to $2 million.
  • Novamar Insurance Group expanded its Offshore Yacht Insurance Program to cover boats cruising locally or around the world.
  • And following the sharing economy trend, BoatUS launched Peer-to-Peer Boat Rental insurance policy for boat owners to use when renting out their boats through Boatbound, a nationwide boat rental marketplace.

 

Financial Services

The financial services industry has become highly regulated and scrutinized since the 2008 financial crisis. Those working as investment, hedge fund, and financial advisors such as accountants or bankers, have faced increased litigation and liabilities to emerging risks like cyber.

“There is so much regulation around finance – they are constantly seeing something new out of the SEC,” said Paul Schiavone, regional head of financial lines in North America. “And now companies have to worry about cyber and being told they aren’t doing enough to protect the company from a hacker.”financial-stability-150x150

In 2015 the insurance industry started to address many of these exposures.

Allianz rolled out numerous financial lines coverage options with a multi-city North American broker road show in the fall. The coverage addresses many financial services including insurers, banks, investment managers, private equity, hedge funds, and broker dealers.

“It’s important to keep up to speed on the exposures for the financial industry and listen to what customers need because that is where the next product comes from,” said Schiavone. “The financial institution world is changing so rapidly on a legal basis.”

Other insurers who created new products for this segment in 2015 included:

  • Argo Pro expanded its professional and management liability with its Asset Management Playbook product that includes capacity of up to $15 million for investment advisors, wealth management firms, funds and other related financial institutions.
  • Berkshire Hathaway Specialty Insurance (BHSI) launched Professional First Bankers Professional Liability insurance for banks, their executives and employees for alleged errors or omissions.
  • XL Catlin created a suite of new financial institution bond insurance policies for stock brokers; investment bankers or managers; mortgage banks and finance companies; commercial bankers and savings banks and insurance companies.
  • QBE North America and MGU Jorgensen & Co. formed an underwriting agreement to provide accountants and consultants professional liability insurance.
  • Lockton Affinity and Monitor Liability Managers began offering a national CPA professional liability program.
  • OneBeacon started a new Financial Institutions business unit targeting all classes of financial institutions and hired Kevin Koehler to lead.

 

Ridesharing

Uber appAs state lawmakers worked across the country to develop regulations for the emerging ridesharing industry, the insurance industry started rolling out coverage to address the insurance needs for these entities.

The National Association of Insurance Commissioners (NAIC) tried to help jumpstart the industry’s acceptance with a white paper on how state regulators should deal with addressing the insurance issues of TNCs. The paper suggested that regulators and legislators divide the rideshare process into three periods and spell out coverage requirements TNC drivers must maintain during each of those periods. Many insurers have formulated policies around this concept.

“[Ridesharing insurance products] are being introduced by innovative insurers willing to take on the calculated risk…” the paper states. “Because the products are not being standardized but are being developed by different insurers, they will likely establish coverage via different methods for different time periods.”

Shortly after the NAIC paper came out, ISO introduced two new personal auto coverage options for ridesharing drivers when they’re logged in but don’t have any passengers.

Farmers Insurance introduced coverage in Colorado at the beginning of the year and later in Kansas. It was also the first insurer in California to offer a ridesharing insurance product back in May in anticipation of the rideshare law going into effect in the state on July 1. Insurance Commissioner Dave Jones said at the time the product launch was a “big deal.”

“This is the first major California insurer who is offering this not just for one transportation network company, but for all of them associated with Farmers insurance,” said Jones.

Just 28 states have enacted ridesharing regulations so far, and insurers have mainly released products in those states with clear guidelines.

Other notable ridesharing products launched this year include:

 

Energy

As predicted earlier this year, the energy segment was a favorite of the insurance industry yet again in 2015. But it was the big names in insurance who made the most notable product moves this year.

nano-particle-gridMore states and companies are investing in renewable energy technologies and new energy exploration, which are both costly and complicated to insure. The drop in the price of oil also weeded out some players that were not adequately capitalized to handle the risk.

Companies that made product investments in this ever-growing segment included:

  • Aon Benfield invested in a catastrophe model for marine and energy insurers to assess their cargo risks.
  • XL Group’s venture capital fund, XL Innovated, acquired all the shares of New Energy Risk, which develops insurance products for the energy industry.
  • Energi, a reinsurance company focused on energy companies, launched a new workers compensation injury-reporting program.
  • Everest Insurance and Associated Electric & Gas Insurance Services (AEGIS) formed a strategic alliance to provide primary admitted coverage to energy companies.
  • Ironshore’s Global Property Energy division raised its energy sector capacity limits to $35 million for all classes of business within the specialty property energy sector.