The insurance industry this year is facing regulatory challenges on a variety of issues including cybersecurity, pricing, and mergers and acquisitions. Deloitte outlines these trends in a report, and experts with the firm take a deeper dive into these topics in an e-mail interview with SmartBrief. In this post, they examine issues affecting the property/casualty sector.

Cyberinsurance and technology

An “inherent informational mismatch” between insurers and cyberinsurance buyers has hindered the cyberinsurance sector’s growth somewhat, says John Lucker, a principal in Deloitte Consulting and the global advanced analytics and modeling market leader.

That mismatch is partly the result of customer uncertainty about how to evaluate their cyberexposure in a way that gives insurers the necessary information to accurately price the risk, while insurers are unsure of what questions are most effective at eliciting that information, Lucker says. (read more…)

Happy St. Paddy’s Day from sunny and warm FIA Boca!

Exchange M&A continued to be the hot topic yesterday. While none of the executives could comment on the deal announced by Deutsche Boerse and London Stock Exchange Group, that didn’t stop everyone else from chatting about the deal. The swell of rumors seemed to lean toward the deal not being finalized before Jeff Sprecher and the crew at ICE have a say in the matter.

The one thing about rumored M&A moves that seems to be missing from all the scuttlebutt is any mention of anti-trust concerns. Perhaps the Boca crowd is a wee bit overconfident about any potential deal getting a easy approval from anti-trust authorities?

CFTC Chairman Timothy Massad delivered his keynote and also spent time on the sidelines of the conference assuring industry participants that the Commission would adequately safeguard the algorithmic trading secret sauce it intends to collect from trading firms. (read more…)

CME Group will integrate truePTS processing capabilities into CME Group’s network of regulated trade repositories under an agreement announced Wednesday at the 41st Annual International Futures Industry Conference in Boca Raton, Fla. Incorporating these capabilities enables truePTS to provide a single trade reporting application program interface to conform with obligations in the US, EU, Australia, Canada, Singapore, Hong Kong and Japan.

“CME Group is committed to developing innovative solutions with leading partners to meet industry participants’ needs,” said CME Group’s Jonathan Thursby. “By tightly integrating our services with truePTS, we are now poised to more rapidly deliver tangible cost savings to customers worldwide, as well as promote greater efficiency and better tools to manage compliance within our industry.”

The agreement also simplifies global reporting through the integration of pre- and post-trade submission services. The streamlining will create significant cost savings when it comes to regulatory submissions to broker-dealers, inter-dealer brokers, central counterparty clearinghouses, and asset managers. (read more…)

For years, real-time margin calculations were a pipe dream for risk managers. However, a new partnership is working to show risk managers that the dream is now a reality. Broadridge Financial Solutions and The Technancial Company are combining TTC’s JANUS Margin Engine with Broadridge’s post-trade management solution to create a new post-trade offering for options and futures. This new solution will provide clients access to expanded derivatives processing capabilities, including client clearing and the power to consolidate post-trade operations across various assets.

The move reflects trends both firms have seen in the marketplace. “Margins are no longer an end of day calculation. We can answer questions about open orders in microseconds,” Mirko Marcadella, TTC’s Global Head of Business Development, explained on the sidelines of the 41st Annual International Futures Industry Conference in Boca Raton, Fla.

“The collaboration between Broadridge and TTC offers our mutual clients the ability to benefit from a superior, highly efficient exchange traded derivatives capability with seamless process throughout,” explained Paul Clark, Broadridge’s head of Institutional Strategy and Product Management. (read more…)

Attendees at the 41st Annual International Futures Industry Conference awoke to the news this morning that London Stock Exchange Group and Deutsche Boerse had announced their “merger of equals.” The news comes as a relief to many in Boca as there was a fear during yesterday’s Day One that this year’s conference would become three days of “no one talking about what everyone wants to talk about.” Perhaps ICE boss Jeff Sprecher summed it up best at the end of his exchanges information exchange yesterday when no one in the audience asked any questions: Sprecher expressed thanks and relief that no one would ask him questions he couldn’t answer.

Other highlights from Day One included comments from FIA President and CEO Walt Lukken about the burden regulations continue to represent for the industry. FIA Head of Europe Simon Puleston Jones summarized it best in his comments about MiFID: The industry is happy the implementation date has been pushed back, but the industry still wants the rules finalized as quickly as possible. (read more…)