With an increase in data breaches to cyber attacks, one can say that 2018 was all about security.
Not only have these incidents affected the world of security professionals, but they have altered the risk management landscape in particular. In 2019, we expect a few trends to move towards influencing this market.
A Difficult Market for Active Shooter Risks
Active shooter incidents are a catastrophic loss for security professionals if they are held responsible for these claims. In almost every instance, these losses reach the policy limits. Thus, the insurance market for security professionals is hardening with coverage available from fewer carriers and to fewer risks. Underwriting guidelines also are tightening for “soft targets” with significant active shooter exposures, including malls, arenas, religious institutions, and schools. Besides, underwriters are paying attention to whether or not a security firm has an active shooter protocol in place for officers.
High-risk Security Areas
The healthcare arena continues to be an unsafe work environment specifically in the emergency departments where there is an admittance of violent patients and visitors. In hospitals and other risky situations, training and experience have been deemed as very important. Marijuana dispensaries, medical or otherwise, continue to be a problematic legal area because these are an illegal and large amount of cash is stashed usually in the retail stores.
Industry growth Focused on IT
The security industry is increasing and of-late there has been a growth in the number of start-up firms and consultants in the market, especially those who particularize in information technology security. These firms and consultants need to be on high alert over data breaches. Security firms are also using an expanding array of technological solutions to support their work, from drones to robots to advanced security systems. Taken together, these trends mean the security workforce is changing.
Commercial Auto-makers’ Woes
We are all well-versed in the commercial auto markets’ woes, and the security industry is not immune to it. Thanks to trends such as distracted driving and the increasing costs of auto repairs, this line of coverage have become synonymous with frequent claims, large losses, and strict underwriting guidelines. In the past few years, we noticed some improvement in outcomes in this line of coverage. The insurance industry’s push to encourage safe driving practices as part of risk management and loss control has paid off.