Property and casualty insurance carriers in California are expressing concern that competitors will be able to see sensitive intellectual property and risk appetite information, following a state regulator’s legal opinion that said underwriting rules should be made public.
San Francisco partner Dan Brown was quoted in The Insurance Insider in an article titled “CDI opinion could force carriers to reveal underwriting secrets.” Dan, whose practice includes counseling InsurTech clients, said many carriers are asking how they can protect their intellectual property and are worried that they will lose any first-to-market advantage because their trade secrets will be out in the open. He predicts that in the future, property and casualty carriers will file material “that won’t signal what they’re doing—but that’ll be hard.”
The impact of the state insurance regulator’s legal opinion will also likely influence other states, Dan said, given the size and importance of the California insurance sector.
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