Weekly Articles
Insurance Market
AI in insurance praised, but consumers still aren't convinced – GlobalData
A recent GlobalData survey indicates that while consumers recognize the benefits of AI in insurance—such as improved efficiency and 24/7 customer support—many remain skeptical due to concerns about data privacy and the transparency of AI-driven decisions. This skepticism highlights the need for insurers to prioritize clear communication and transparency to build trust in AI applications.
A. J. Gallagher completes acquisition of Woodruff Sawyer
Arthur J. Gallagher & Co. will acquire Woodruff Sawyer for $1.2 billion, expanding its U.S. retail P&C brokerage capabilities. Woodruff Sawyer, a San Francisco-based brokerage with strong management liability and construction expertise, brings $268M in pro forma revenue and over 600 employees.
Insurance Industry Contemplates Knock-On Effect of Tariffs to Claims, Consumers
The U.S. insurance industry is warning that President Trump's sweeping tariffs—imposed on April 2, 2025, including a 25% levy on imported cars and parts—could significantly raise costs for consumers, with the American Property Casualty Insurance Association (APCIA) estimating personal auto insurance claims costs may increase by $30 billion to $60 billion annually. Experts also anticipate higher premiums in homeowners and commercial insurance lines due to rising prices for construction materials and vehicle parts, while broader economic disruptions may affect other sectors such as trade credit, business interruption, and marine insurance.
MarketScout: Q1 Composite Personal Lines Rates Up 4.9%; Commercial Rates Up 3%
In the first quarter of 2025, U.S. personal lines insurance rates increased by 4.9%, driven largely by the aftermath of California wildfires and rising risks ahead of hurricane season, with high-value homes experiencing a 7.3% rate hike. Commercial insurance rates also rose by 3%, with umbrella, excess liability, and auto coverages each climbing 6.7%, and the transportation sector facing the steepest increase at 6% due to ongoing underwriting concerns.
NAMIC, Big ‘I’ Join Call to Do Away With Federal Insurance Office
The National Association of Mutual Insurance Companies (NAMIC) and the Independent Insurance Agents & Brokers of America (Big 'I') have joined efforts to support the elimination of the Federal Insurance Office (FIO), arguing that it duplicates state regulatory functions and imposes unnecessary burdens on the insurance industry. They, along with other industry groups, criticize the FIO for overstepping its mandate and producing reports lacking in factual and data-driven analysis, such as its recent assessment on homeowners insurance affordability.
NAIC, Legislators Push to Abolish the Federal Insurance Office
The National Association of Insurance Commissioners (NAIC) has called for the elimination of the Federal Insurance Office (FIO), aligning with the Federal Insurance Office Elimination Act introduced by Congressman Troy Downing in January 2025. They argue that the FIO duplicates state regulatory functions and complicates state engagement with international insurance matters.
Risk Digitization Top Tech Priority for U.S. Insurers
A recent survey by InsurTech Cytora reveals that 76% of senior insurance leaders identify risk digitization—including processes like new business, renewals, claims, and mid-term adjustments—as their top technology investment priority over the next two years. Key drivers for this focus include revenue growth, enhanced transaction processing capabilities, and improved service to brokers and customers, while manual data extraction from intake documents remains a significant inefficiency.
Zurich takes a stake in AI-powered insurer Ominimo to drive European expansion
Zurich Insurance Group has acquired a minority stake in Ominimo, a Hungary-based AI-driven car insurance startup founded by Serbian entrepreneurs, valuing the company at €200 million. This investment aligns with Zurich's 2025–2027 growth strategy and involves a partnership through its German unit, DA Direkt, to expand digital motor insurance offerings across Europe, starting with a rollout in Poland later this year.
Reinsurance Market
Alternative capital the main source of inflow to reinsurance in 2024: Gallagher Re
In 2024, alternative capital—primarily from catastrophe bonds and insurance-linked securities (ILS)—was the main source of new capital inflows into the reinsurance market, growing by 6.6% to reach a record $114 billion, according to Gallagher Re. This growth outpaced that of traditional reinsurance capital, which increased to $629 billion mainly through retained earnings, highlighting the increasing role of capital markets in providing reinsurance capacity.
Buyer-Friendly April Reinsurance Renewal Bodes Well for Mid-Year Renewals: Brokers
The April 2025 reinsurance renewals were notably favorable for buyers, characterized by abundant capacity and competitive pricing, especially for loss-free property catastrophe accounts in regions like Japan and South Korea, which saw double-digit rate reductions. According to reports from Aon and Gallagher Re, these positive conditions are expected to continue into mid-year renewals, supported by reinsurers' strong financial results and a relatively low incidence of natural catastrophe losses in Asia.
LA Wildfires Had Little Impact on Reinsurer Risk Appetite During April Renewals
Despite the record-setting losses from California's January wildfires—estimated between $32 billion and $38 billion—reinsurers maintained strong appetite and capacity during the April 1, 2025, renewals, with many even increasing their wildfire exposure. Reports from Aon and Gallagher Re indicate that while some reinsurers adopted more conservative quoting, particularly for loss-impacted accounts, overall pricing remained stable or saw reductions, and alternative capital markets continued to provide healthy competition.
Reinsurers to weather tariff-induced market volatility with minimal impact: S&P
According to S&P Global Ratings, global reinsurers are expected to experience only minor impacts from recent tariff-induced market volatility, thanks to their conservative investment strategies and strong capital positions. While short-term equity losses and potential medium-term asset impairments are anticipated, the sector's robust underwriting performance and improved operating results in recent years position it well to manage these challenges.
Resilience partners with Accredited to expand capacity of cyber risk solutions
Cyber risk solutions firm Resilience has partnered with Accredited Insurance Holdings to expand its capacity for serving large enterprises with revenues exceeding $10 billion, addressing complex cyber threats such as ransomware and third-party business interruptions. This collaboration enhances Resilience's integrated approach, combining underwriting, in-house claims handling, and a cyber decision platform to help clients proactively manage and mitigate cyber risks.
VIG Re reports 9.2% growth in GWP for FY'24
VIG Re, the reinsurance arm of Vienna Insurance Group, reported a 9.2% increase in gross written premiums for 2024, reaching €983.3 million, driven by growth in both third-party and group business segments. Despite above-average catastrophe losses, the company achieved a profit before tax of €41.6 million, a return on equity of 10.2%, and improved its combined ratio to 89.62%.
Commercial Lines
How E&O can shield an impending US manufacturing revival
As U.S. manufacturing experiences a resurgence driven by reshoring efforts and new tariffs, Errors and Omissions (E&O) insurance is becoming increasingly vital for manufacturers. This coverage protects against financial losses stemming from non-physical damages, such as design flaws, regulatory missteps, and supply chain disruptions, which are not typically covered by general liability policies. With the integration of advanced technologies and the complexities of global supply chains, E&O insurance offers a safety net for manufacturers navigating this evolving landscape.
Majority of Small Biz Leaders Think AI Will Play ‘Crucial Role’ in Work Safety
A Pie Insurance survey found that 64% of U.S. small business leaders believe AI will be essential to workplace safety over the next five years, with 44% already using AI tools—reporting improvements in efficiency (97%) and safety (73%). Common applications include predictive analytics, AI-powered surveillance, and virtual safety training, though employee resistance remains a challenge to broader adoption.
Report: 75% of Small Businesses Had Workplace Injuries; Mental Health a Growing Concern
According to Pie Insurance’s 2025 State of Workplace Safety Report, 75% of U.S. small businesses experienced a workplace injury in the past year, with mental health-related incidents (22%) surpassing physical injuries like slips and falls (20%) as the most common. The report also highlights that 46% of small businesses now view mental health as the greatest workplace safety risk, while 81% are open to adopting AI tools to enhance safety, despite facing employee resistance to new protocols.
The Workplace Is Changing; So Are the Risks for Employment Discrimination Claims
The article discusses how evolving technologies and societal shifts are increasing the risk of employment discrimination claims for employers and their insurers. It emphasizes the challenges posed by artificial intelligence in hiring processes and the need for businesses to adapt to new workplace norms to mitigate potential legal exposures.
UAW Joins Critics Slamming RFK Jr.’s Cuts to Worker Safety Unit
The United Auto Workers (UAW) union has strongly opposed the Trump administration's decision to cut nearly 900 jobs at the National Institute for Occupational Safety and Health (NIOSH), warning that the move could have detrimental effects on worker safety nationwide. These layoffs are part of broader reductions across the Department of Health and Human Services under Secretary Robert F. Kennedy Jr., prompting bipartisan criticism and calls from organizations like the "Friends of NIOSH" coalition and Senator Shelley Moore Capito to reverse the cuts.
U.S. Roof Claims Costs Reached Over $30 Billion In 2024, Underscoring Evolving Risks
Verisk reports U.S. roof repair costs hit $31B in 2024, up 30% since 2022, driven by wind and hail damage. Aging asphalt shingle roofs, especially in hail-prone states, are increasingly vulnerable. Verisk urges insurers and agents to leverage roof data and mitigation strategies to control rising claims and costs.
Emerging Risks
AccuWeather: Severe Storms in Central US Cause $80-90B in Damages, Economic Loss
A multiday severe weather outbreak from April 2 to April 6, 2025, across the central U.S. caused an estimated $80 to $90 billion in total damage and economic loss, according to preliminary estimates from AccuWeather. The storm system brought 8 to 16 inches of rainfall—up to 20 inches in some areas—leading to extreme flash flooding, nearly 90 reported tornadoes (including at least three rated EF3 or stronger), hailstones exceeding 3 inches in diameter, and wind gusts up to 100 mph, with major river flooding expected to continue in some areas for days to come.
A recent Allianz Commercial report highlights that civil unrest and political violence remain top global business risks in 2025, with over 800 significant anti-government protests occurring in more than 150 countries in 2024 alone. These events pose substantial threats to businesses, including property damage, business interruptions, and increased insurance losses, prompting a surge in demand for specialized political violence coverage across various sectors.
Hackers Spied on 100 US Bank Regulators’ Emails for Over a Year
Hackers infiltrated the Office of the Comptroller of the Currency (OCC), accessing over 150,000 emails from approximately 100 bank regulators between June 2023 and early 2025 by compromising an administrator's account. The breach, which exposed sensitive supervisory communications, was reported to the Cybersecurity and Infrastructure Security Agency (CISA), though no immediate impact on the financial sector has been identified, and the perpetrators remain unknown.
Lockton partners with Axio to enhance cyber risk analytics
Lockton has partnered with cyber risk quantification firm Axio to enhance its cyber risk analytics capabilities. By integrating Axio’s platform, Lockton aims to help clients better understand and manage cyber risks in financial terms, providing customized, actionable intelligence that supports informed decision-making regarding investments, controls, and insurance coverage.
Report Reveals Remote Access Tools, Supply Chain Key Drivers of Cyber Claims
According to At-Bay's 2025 InsurSec Report, remote access tools, particularly VPNs, were exploited in 80% of ransomware attacks in 2024, with VPNs alone accounting for 66% of incidents. Mid-sized companies experienced a 46% increase in attacks, and losses from third-party breaches surged by 72% to an average of $241,000 per incident, highlighting the growing risks associated with supply chain vulnerabilities.
What's behind the great sustainability stall?
A recent Beazley survey reveals that 73% of global executives are deprioritizing sustainability targets due to economic uncertainty, with only 20% viewing climate and catastrophic risks as top concerns. Beazley's Chief Underwriting Officer, Paul Bantick, warns that neglecting climate exposures could lead to increased property damage, business interruptions, and liability risks, emphasizing the need for proactive resilience and continuity planning.
Litigation & Mass Torts
Bayer Renews Bid for Supreme Court to Curb Glyphosate Cases
Bayer has petitioned the U.S. Supreme Court to limit state-level lawsuits alleging that its Roundup weedkiller causes cancer, arguing that federal law preempts state requirements for additional warnings beyond those approved by the EPA. This renewed effort follows a split among federal appeals courts and comes amid ongoing litigation, with Bayer having paid approximately $10 billion to settle claims and facing around 67,000 additional cases.
Jack Dorsey’s Block to Pay New York $40 Million in Cash App Settlement
Block Inc., the digital payments firm founded by Jack Dorsey, has agreed to pay a $40 million fine to the New York Department of Financial Services (NYDFS) for alleged anti-money laundering and cryptocurrency compliance failures on its Cash App platform. The settlement follows findings that Block failed to conduct adequate customer due diligence, monitor high-risk Bitcoin transactions, and report suspicious activity, prompting the company to also retain an independent monitor for one year
Jazz Pharma to Pay $145M to Settle Narcolepsy Drug Antitrust Case
Jazz Pharmaceuticals has agreed to pay $145 million to settle antitrust lawsuits alleging it delayed the release of a generic version of its narcolepsy drug, Xyrem, by paying Hikma Pharmaceuticals to postpone competition and restricting distribution through a single specialty pharmacy. Despite denying any wrongdoing, Jazz will fund the settlement from existing cash reserves and record a pre-tax charge in the first quarter of 2025.
Viatris to Pay Up to $335 Million to Resolve Opioid-Related Claims
Viatris has agreed to pay up to $335 million over nine years to settle nationwide opioid-related claims, contributing between $27.5 million and $40 million annually to state and local initiatives without admitting wrongdoing. The company, which markets opioid products like Ultiva and a generic fentanyl patch, joins other pharmaceutical firms in addressing litigation stemming from their alleged roles in the opioid crisis that has resulted in over 700,000 U.S. deaths in the past two decades.
People Moves
Ascot appoints RenRe's Marc Amen as CEO, North America
Ascot Group has appointed Marc Amen as Chief Executive Officer (CEO) for North America, effective later this year upon completion of his current obligations. In this role, Amen will oversee all operations of Ascot's U.S. and Bermuda insurance and reinsurance companies and will join the Ascot Group Executive Committee, reporting directly to Group CEO and President Jonathan Zaffino. Amen brings 24 years of underwriting and leadership experience, having previously managed underwriting and key operational aspects of RenaissanceRe's U.S. platform, and held positions at Alterra Re, Harbor Point Re, and Chubb Re.
Fidelis Partnership hires Erik Manning as Head of Ceded Reinsurance
The Fidelis Partnership (TFP), a Bermuda-based managing general underwriter, has appointed Erik Manning as Head of Ceded Reinsurance. Manning brings over two decades of experience in reinsurance, retrocession, and insurance-linked securities (ILS), having held senior roles at BMS Re, Miller, Aon Bermuda, Markel Re, and Guy Carpenter. His expertise in alternative capital solutions and extensive industry network are expected to enhance TFP's strategic reinsurance capabilities.
Insurance hires: Gallagher, Preferred Employers Insurance
Gallagher has appointed Hunter Davis as executive vice president and senior managing director of its private equity and M&A practice, where he will oversee property/casualty and employee benefits operations across U.S. brokerage teams and deliver integrated insurance solutions to private equity and corporate clients. Preferred Employers Insurance, a Berkley company, named Steve Feemster as sales and distribution manager for Southern California, focusing on broker engagement and strengthening the company's workers’ compensation insurance distribution in the region. These hirings reflect the demand within the industry for experiences leadership in niche areas.
Insurance moves at WTW, BHSI, Hub and Zurich North America
Several major insurance firms have announced leadership appointments aimed at strengthening their operations across key business segments. Willis Towers Watson (WTW) appointed Dom Spinelli as head of transactional insurance claims for North America, overseeing claims within its Alternative Asset Insurance Solutions division. Berkshire Hathaway Specialty Insurance (BHSI) made leadership changes within its North America casualty division, including appointing Matt Hale as head of US casualty underwriting operations. Hub International Limited named Mustafa Faizani as executive vice president of US employee benefits and retirement & private wealth, and Michael Booth as president of its US Employee Benefits Practice. Zurich North America appointed Eric Amadori as head of management liability – public.
Liberty Mutual CEO Sweeney Elected Chairman, Long Steps Away
Timothy M. Sweeney, currently serving as president and CEO of Liberty Mutual, has been elected chairman of Liberty Mutual Holding Co., succeeding David H. Long, who is retiring after a 40-year tenure with the company. Long is credited with transforming Liberty Mutual into the sixth-largest global property and casualty insurer through key acquisitions, including State Auto, Ironshore, AmTrust Financial, and AmGeneral.
IMA Financial Group has appointed Erik Wargo as executive vice president and head of property, bringing over two decades of experience in commercial property brokerage from firms like Marsh and Lockton. Simultaneously, Allianz Commercial is expanding its U.S. construction team with five new hires, including Kristen Hoskinson as executive underwriter team leader, to strengthen its Master Builder’s Risk practice.
Willis Towers Watson has appointed Dom Spinelli as Head of Transactional Insurance Claims for North America, where he will oversee the full lifecycle of claims within the Alternative Asset Insurance Solutions division, including representations and warranties, tax, and contingent matters. Additionally, Zurich North America named Eric Amadori as Head of Management Liability – Public, and Berkshire Hathaway Specialty Insurance announced leadership changes in its North American casualty business, with Matt Hale, Marcie Stephan, and John Roe taking on key roles to strengthen their underwriting operations across the U.S.
Alan Gray was established in 1988 as a claims and audit advisory firm, and over the years has built a reputation as a cost-effective, reliable, and trusted resource to those involved in the management of risk.
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