Weekly Articles
Commercial Lines
Most primary insurers reporting LA wildfires as single event: Swiss Re's Dacey | The Insurer
Swiss Re's CFO, John Dacey, stated that most primary insurers are treating the recent Palisades and Eaton wildfires in Los Angeles as a single event for reporting purposes. This approach could influence the aggregation of claims and impact reinsurance recoveries related to these catastrophic incidents.
Survey Shows Declining Consumer Confidence in AI for P/C Insurance- Claims Journal
A recent Insurity survey reveals a decline in consumer confidence regarding the use of artificial intelligence (AI) in property/casualty insurance. The percentage of respondents viewing AI as beneficial for insurers decreased from 29% in 2024 to 20% in 2025, with 44% now less likely to purchase policies from AI-utilizing insurers, up from 42% the previous year.
The Pennsylvania Superior Court has denied Evanston Insurance's mid-trial petition to intervene in a construction defect lawsuit involving Streamline Solutions LLC and Nineteenth Street Development LLC. Evanston sought to submit special jury interrogatories to clarify coverage responsibilities but was deemed to have acted too late, as the trial had already commenced and intervention could have prejudiced the plaintiffs.
Climate insurance startup running out of funds amid USAID freeze | The Insurer
Oko Finance, an African climate insurance startup, is seeking investment and considering a sale after anticipated funding from the U.S. Agency for International Development (USAID) was frozen. This development follows the Trump administration's recent suspension of foreign aid, which has disrupted numerous international development projects.
Munich Re Faces $1.3 Billion in Claims From Los Angeles Wildfires - Claims Journal
Munich Re anticipates approximately €1.2 billion ($1.26 billion) in claims from the January 2025 Los Angeles wildfires, marking the largest loss reported by a European reinsurer for this catastrophe. Despite this impact, the company projects its net profit to rise to €6 billion in 2025, up from €5.7 billion in 2024.
Reinsurers provided ample casualty reinsurance capacity during the January 2025 renewal season, despite concerns over rising litigation costs and adverse reserve development. However, AM Best warns that if premium rate increases fail to keep pace with social inflation-driven loss trends, an availability crisis could emerge in the casualty reinsurance market.
Emerging Risks
Insurers concerned over rapidly growing cyber market - Commercial Risk
The rapid expansion of the cyber insurance market is raising concerns among insurers about accurately assessing and managing risks. Challenges include the dynamic nature of cyber threats, potential for large-scale losses, and the need for comprehensive data to inform underwriting decisions.
Third-Party Risk Drives Surge in Cyber Claims, Incurred Losses - Risk & Insurance : Risk & Insurance
In 2024, third-party risks, including ransomware and vendor outages, accounted for 31% of all cyber insurance claims, with incurred losses from these risks rising to 23% from 0% in 2023. Ransomware remained a significant threat, contributing to 61% of claims with losses, while transfer fraud incidents increased to 18% of incurred claims.
Ransomware and third-party risk driving cyber claims: Resilience - Commercial Risk
In 2024, third-party risks became a dominant factor in cyber insurance claims and significant losses, as reported by Resilience Cyber Insurance Solutions. While ransomware remained the leading cause of loss, the surge in third-party incidents underscores the need for enhanced transparency and robust security measures within supply chains.
Business Continuity Plans Lacking Among SMBs: Nationwide Survey - Insurance Journal
A recent Nationwide survey reveals that while mid- and small-market businesses (SMBs) share concerns over economic and financial risks, only 54% feel well-protected against these threats. Despite small businesses allocating 18% of their budgets to risk management—more than mid-market firms at 6%—gaps persist, with just 55% having disaster preparedness plans and 60% implementing fall protection programs.
Litigation & Mass Torts
Florida’s Bad-Faith Claims Reform Law Not Retroactive, Appeals Court Says – Insurance Journal
A Florida appeals court ruled that the 2022 bad-faith litigation reform law cannot be applied retroactively. In Vo vs. Scottsdale Insurance, the court reversed a dismissal, citing past Supreme Court rulings that new laws eliminating valid claims cannot be retroactive. The case was reinstated against Scottsdale (now Nationwide E&S).
Triple-I Blog | Georgia Targets</BR>Legal System Abuse
Georgia is addressing legal system abuse through legislative measures aimed at reducing excessive litigation and its economic impact. Senate Bill 68 seeks to cap pain and suffering damages and limit "phantom damages" in premises liability cases, while Senate Bill 69 targets third-party litigation funding by requiring investor registration and prohibiting foreign adversary involvement. These reforms aim to alleviate the estimated $1,415 "tort tax" per resident and the loss of over 137,000 jobs annually attributed to excessive litigation in the state.
Meta Must Face Lawsuit Claiming It Prefers Cheaper Foreign Workers - Claims Journal
A federal judge has ruled that Meta Platforms must face a proposed class-action lawsuit alleging the company prefers hiring foreign workers on H-1B visas over qualified U.S. citizens to reduce labor costs. The plaintiffs claim they were denied employment between 2020 and 2024 due to Meta's systematic preference for visa holders, a practice previously addressed in a 2021 settlement where Meta agreed to pay up to $14.25 million over similar allegations
The Pennsylvania Superior Court upheld the denial of Evanston Insurance’s intervention in a $3.2M construction defect lawsuit, ruling the insurer waited too long to act. The court emphasized that insurers must seek intervention before trial begins to avoid prejudicing plaintiffs and disrupting proceedings, reinforcing timely legal action in coverage disputes.
US litigation environment leading to pharma liability rate increases | The Insurer
The U.S. pharmaceutical liability insurance market is experiencing rate increases due to a challenging litigation environment characterized by nuclear settlements and the influence of litigation financing. These factors have heightened insurers' concerns about potential large-scale claims, leading to adjustments in underwriting practices and premium pricing.
US Supreme Court Seems Poised to Lower Bar for Reverse Discrimination Suits - Claims Journal
The U.S. Supreme Court appears inclined to make it easier for individuals from majority groups, such as heterosexuals, to file workplace discrimination lawsuits. During recent arguments, justices from both liberal and conservative backgrounds questioned the necessity of requiring plaintiffs from majority groups to provide more evidence than minority plaintiffs to prove discrimination under Title VII of the Civil Rights Act of 1964.
The Oklahoma Supreme Court has ruled that insurers must provide direct written notice of policy renewal offers or nonrenewals to the first named insured, rather than solely notifying the insured's agent. This decision came after Western World Insurance Company denied a fire loss claim, asserting the policy had expired without the property owner's direct knowledge of the renewal offer.
Insurance Market
Aspen Reports Full-Year 2024 Results - Aspen
Aspen Insurance Holdings reported strong financial results for Q4 and the full year 2024, with net income of $235 million for the quarter and $431 million for the year, driven by strong underwriting and investment performance. Despite industry challenges like the California wildfires, Aspen maintained profitability with an adjusted combined ratio of 86.8% for the year.
AGCS books 13% drop in 2024 profit after Arch deal - Commercial Risk
Allianz Global Corporate & Specialty (AGCS) reported a 13.4% decline in operating profit to €825 million for 2024, primarily due to the transfer of its U.S. mid-corporate and entertainment portfolios to Arch Capital. Additionally, the company experienced a slowdown in rate increases, averaging 2.1% compared to 6.4% in the previous year.
AXA's net income hits new highs in 2024 | Insurance Business America
AXA reported a 10% increase in net income for 2024, reaching €7.89 billion, surpassing analyst expectations. This growth was driven by higher premiums from individual insurance policies and fewer natural disaster claims, with total revenues rising 7% to €110.3 billion. The company announced a €1.2 billion share buyback plan and a 9% dividend increase, while maintaining a strong Solvency II ratio of 216%.
Fidelis Insurance Group Reports 2024 Fourth Quarter Results
Fidelis Insurance reported 23% premium growth in 2024, reaching $4.4 billion, but faced Q4 losses due to high catastrophe claims. The combined ratio was 99.7% for the year, with $113.3M net income. Q4 saw a $122.2M loss. Despite challenges, Fidelis remains focused on strategic growth and capital management.
Polished Gem GEICO Fuels Berkshire Hathaway Operating Gains - Carrier Management
GEICO's significant turnaround in 2024, achieving a $7.8 billion underwriting profit, has substantially bolstered Berkshire Hathaway's overall operating income, which rose by $10 billion to $47.4 billion. Chairman Warren Buffett credited CEO Todd Combs for revitalizing GEICO through enhanced efficiency and updated underwriting practices.
2024 Preliminary Results | Hiscox Group
Hiscox Ltd reported a record pre-tax profit of $685.4 million for 2024, a 9.5% increase from the previous year, driven by disciplined underwriting and solid investment returns. The company announced a 14.9% increase in total dividends per share and a $175 million share buyback, reflecting strong capital generation and confidence in future growth.
Lemonade CEO Declares ‘Best Quarter Ever,’ Posts Narrowed Q4 Loss of $30M - Insurance Journal
Insurtech company Lemonade reported a net loss of approximately $30 million for Q4 2024, an improvement from the $42.4 million loss in Q4 2023, with gross profit increasing by 90% to $64 million and in-force premium growing 26% year-over-year to $944 million. CEO Daniel Schreiber highlighted this as the company's best quarter to date, attributing success to enhanced underwriting accuracy supported by artificial intelligence, and noted that auto insurance is poised to be a significant growth driver in the coming years.
Skyward Specialty Insurance Group Reports Fourth Quarter 2024 Results
Skyward Specialty reported $118.8M net income for 2024, up 38% YoY, with 19.4% premium growth. Q4 net income fell to $14.4M due to catastrophe losses. The combined ratio rose to 92.3%, while ROE reached 16.3%. The company expanded into Media Liability, Life Sciences, and Renewable Energy markets.
Commercial Insurance Premiums Rise Steadily in Q4 2024: CIAB - Risk & Insurance : Risk & Insurance
In the fourth quarter of 2024, the commercial property/casualty insurance market experienced an average premium increase of 5.4%, slightly up from the 5.1% rise in Q3, as reported by The Council of Insurance Agents & Brokers (CIAB). Notably, commercial auto insurance premiums saw the highest surge at 8.9%, marking the 54th consecutive quarter of increases, while cyber insurance premiums decreased by 1.8%, reflecting improved underwriting capacity in that sector.
Triple-I Blog | Severe Convective Storm Risks Reshape U.S. Property Insurance Market
Severe convective storms, including hailstorms and tornadoes, are increasingly driving up U.S. property insurance costs, with Texas, Nebraska, Missouri, Oklahoma, and Kansas accounting for 72% of 2024's hail-related home damage. As storm seasons expand and tornado risks shift eastward, insurers must refine risk models and strengthen infrastructure resilience to manage rising exposure.
Claims Service, Tech, Communication Top Independent Agent Concerns - Insurance Journal
A recent survey by Vertafore, involving nearly 1,300 insurance professionals, reveals that claims service, communication, and technology are the top concerns for independent agents when selecting carriers for new business. Notably, 84% of respondents emphasized the importance of underwriting responsiveness, while 77% advocated for improved onboarding and licensing tools to enhance agency-carrier relationships.
Reinsurance Market
The global casualty reinsurance market is under pressure from rising litigation costs and social inflation, with U.S. reinsurers struggling to keep up with loss trends despite rate increases. While investor preference for casualty lines supports market stability, concerns persist over negative margins, increasing litigation funding, and the lack of meaningful tort reform, which may continue driving up claims costs.
Active Re reports record growth and strong performance – Reinsurance News
Active Re achieved historic growth in 2024, with net reinsurance premiums up 16% and net retained premiums up 17%. Total equity expanded 19%, while ROE reached 19% despite catastrophe losses. The loss ratio improved to 59%, and the combined ratio remained stable at 90%, driven by efficient risk management.
Munich Re CEO: Reinsurance pricing is overall 'very attractive' - Reinsurance News
Munich Re CEO Joachim Wenning described the current reinsurance pricing environment as "very attractive," with the company reporting a 23% increase in net profit for 2024, reaching €5.67 billion, despite a €1.2 billion expected impact from California wildfires. The firm plans to return €4.6 billion to shareholders through dividends and buybacks while maintaining a strong pricing strategy to sustain profitability.
Swiss Re increases net income to USD 3.2 billion and delivers a 15% ROE for 2024 | Swiss Re
Swiss Re reported a net income of USD 3.2 billion and a return on equity (ROE) of 15.0% for the full year 2024, driven by disciplined underwriting and strong investment performance. The company also announced an expected net income of over USD 4.4 billion for 2025 and plans to propose an 8% dividend increase to CHF 7.35 per share.
State Farm to retain $212m of $7.6bn LA wildfire loss after reinsurance - Reinsurance News
State Farm General Insurance Company estimates its direct losses from the January 2025 Los Angeles wildfires at $7.6 billion, with reinsurance arrangements reducing the company's net retention to $212 million. This significant financial impact has prompted State Farm to seek an emergency rate increase in California to bolster its capital reserves.
Technology and Innovation
Smartwatches Measuring Mortality Risks Are New Tool for Insurers - Claims Journal
A recent study by Munich Re and Klarity indicates that wearable devices, such as smartwatches, can enhance life insurance underwriting by providing detailed health metrics like daily step counts and heart rates. Findings suggest that individuals walking at least 7,000 steps daily have a significantly lower mortality risk, regardless of BMI, age, or smoking status.
Warehouse Workers See Safety in AI, Want Employers to Adopt Tech Faster - Carrier Management
A recent study by Zebra Technologies Corporation reveals that 85% of warehouse associates believe that without technological investments, their employers will fail to meet business objectives. Despite 63% of warehouse leaders planning to implement AI and augmented reality within five years, frontline workers urge for faster adoption to enhance safety and reduce time spent on automatable tasks.
‘Exoskeletons’ Could Reduce Work-Related Back Injuries, More Study Needed- Carrier Management
Recent research from Brock University indicates that wearable exoskeletons have the potential to reduce workplace back injuries, but further investigation is necessary to confirm their safety and effectiveness. In a study simulating warehouse tasks, participants wore lower back exoskeletons during one-hour sessions involving lifting, transferring, and lowering boxes, mimicking real-world movements such as twisting and bending.
SCOR backs major renewable energy project developed by Terra-Gen - Reinsurance News
SCOR has provided insurance coverage for Terra-Gen's Edwards Sanborn Solar and Battery Storage Project in Kern County, California, one of North America's largest solar-plus-storage facilities. The project currently delivers 807 megawatts of solar energy and over three gigawatt-hours of battery storage, with future expansions planned to significantly enhance California's renewable energy capacity.
People Moves
Steven Hearn becomes Brown & Brown COO - Reinsurance News
Steven Hearn, a veteran in the insurance and reinsurance industry, has been appointed as Vice President and Chief Operating Officer (COO) of Brown & Brown, effective February 24, 2025. Hearn brings extensive experience to the role, having previously served as a Non-Executive Director at Atrium Underwriting and as Chair of Placing Platform Limited (PPL).
AXA XL has appointed Simon Rees as Chief Underwriting Officer for North America Programs, effective April 1, 2025. Rees, who joined AXA XL in 2017 and has over 20 years of insurance industry experience, will leverage his expertise to enhance the company's specialty program market capabilities and support growth in this segment.
Swiss Re Corporate Solutions appoints McGrath as CUO and unveils new country units - Commercial Risk
Swiss Re Corporate Solutions has announced that Katie McGrath will replace Kera McDonald as chief underwriting officer (CUO), when McDonald moves to become group CUO at Swiss Re from 1 June. McGrath, who joined Swiss Re in 2018, currently serves as head of casualty for Corporate Solutions. In addition, Swiss Re Corporate Solutions is restructuring its operations by creating new country units to enhance client service and market focus.
Hiscox USA Appoints Alexandra Furth as Head of Claims - Risk & Insurance : Risk & Insurance
Hiscox USA has appointed Alexandra Furth as Head of Claims, effective March 10, 2025. Furth brings over 20 years of claims and legal leadership experience, including her recent role as AIG's Head of Casualty Claims, and will lead Hiscox USA's claims practice.
Price Forbes bolsters US reinsurance capabilities with Aon Re’s Power | The Insurer
Price Forbes Re, the reinsurance broking division of Ardonagh Specialty, has appointed Sherman Power as executive vice president of alternative risk and capital solutions. Power, formerly with Aon Re, brings extensive experience in reinsurance and alternative risk transfer, aiming to enhance Price Forbes Re's capabilities in the U.S. market.
Westchester, Chubb's excess and surplus lines company, has appointed Alex Faynberg as executive vice president and head of pet insurer Healthy Paws, effective March 3, 2025. Faynberg, currently division president of Chubb Workplace Benefits, brings over 20 years of insurance industry experience to his new role.
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