Weekly Articles
Commercial Lines
AIG CEO Peter Zaffino warned that 2025 could see insured catastrophe losses exceed $200 billion, driven by rising natural disaster costs, including California wildfires with losses potentially reaching $50 billion. He highlighted the growing strain on primary insurers due to higher reinsurance retentions and the increasing frequency of severe weather events.
Insurers Have Now Paid Out Nearly $7B for LA Wildfires, Report Shows- Insurance Journal
Insurance companies have paid nearly $7 billion for losses from two major Los Angeles wildfires in January, with total insured losses expected to rise. Major insurers like Mercury, Travelers, USAA, Chubb, Allstate, and State Farm each reported over $1 billion in losses, while total economic losses could reach up to $164 billion.
Parametric Insurance Gains Traction Across U.S - Triple-I Blog.
Parametric insurance is gaining traction in the U.S. as a rapid disaster recovery tool, with pilots in Mississippi, New York, and California using data-driven triggers for payouts. Growing interest, improved modeling, and new legislation are driving market expansion, though regulatory challenges remain.
FEMA will borrow $2 billion from the U.S. Treasury to cover National Flood Insurance Program claims after Hurricanes Helene and Milton in 2024, with total expected payouts exceeding $10 billion. This borrowing increases FEMA’s debt to $22.5 billion, highlighting financial strain from recent catastrophic events.
Travelers Expecting $1.7 Billion in Catastrophe Losses From LA Wildfires - Claims Journal
Travelers expects $1.7 billion in catastrophe losses from the recent Los Angeles wildfires, including damages across personal and commercial segments. The wildfires' total insured losses could reach $40 billion, prompting calls for rate increases and regulatory changes in California’s insurance market.
State Farm estimates $6.85 billion in losses from recent California wildfires, disclosed in its emergency rate hike request to state regulators.
California Insurance Commissioner Rejects State Farm’s 22% Rate Request – ClaimsJournal
California Insurance Commissioner Ricardo Lara denied State Farm’s emergency 22% rate hike request, citing insufficient justification. Instead, Lara scheduled a Feb. 26 meeting to address concerns about the insurer’s financial stability. State Farm, citing $1.35 billion in wildfire claims, warned of future market constraints amid regulatory challenges and rising wildfire risks.
AI is transforming commercial insurance by enhancing underwriting precision, managing complex risks, and providing personalized client experiences. Experts emphasize using AI to support, not replace, underwriters while offering tailored solutions like componentized and parametric insurance to meet evolving demands.
The U.S. surplus lines market grew 12.1% in 2024, reaching $81.6 billion in premiums across 15 stamping office states, driven by complex risks and commercial coverage demand. California, Florida, Texas, New York, and Illinois led this growth, with liability, property, and auto liability coverages dominating the sector.
Triple-I: Workers’ Comp Continues Strong Trend of Underwriting Profitability | III
The U.S. workers’ compensation insurance industry posted its second-best underwriting result in 20 years in 2023, with a net combined ratio of 87, marking nine consecutive years of profitability. Despite flat-to-negative rate changes, premiums grew, while claim frequency declined due to safety regulations and technology, though claim severity increased.
‘Old School’ Job Search Benefits Injured Worker in Lost Wages Claim - Claims Journal
A Virginia Workers’ Compensation Commission panel upheld wage loss benefits for an injured worker, finding his “old school” job search using phone calls and word of mouth reasonable despite not using online tools. The worker’s consistent effort and sincerity outweighed his lack of computer skills.
MGAs
MGAs must focus on administrative operations | Digital Insurance
The article emphasizes that managing general agencies (MGAs) must prioritize automating their financial operations to handle growing transactional complexities, reduce costs, and improve efficiency. Implementing automated systems enhances scalability, ensures regulatory compliance, and strengthens relationships with insurers and brokers by demonstrating operational excellence and commitment to innovation.
Viewpoint: The Recipe for Building a Successful MGA - Insurance Journal
Outlining key ingredients for building a successful MGA, emphasizing a client-centric model, innovation-driven culture, scalability, and next-generation talent. It highlights how MGAs can thrive through operational resilience, digital tools, and strong capacity partnerships, with examples like Crux Risk Services and HIVE Underwriters.
Emerging Risks: PFAS
Lawsuits have been filed against Apple, Samsung, and Hershey’s over alleged PFAS chemicals in smartwatch bands and chocolate packaging, citing potential health risks. Plaintiffs seek class-action status, product changes, and consumer compensation as the cases progress.
Record Levels of Forever Chemicals Found in Wildlife Near New Mexico Base - Insurance Journal
Environmental regulators in New Mexico have found record levels of harmful PFAS chemicals in wildlife near Holloman Air Force Base, raising concerns for hunters and public health. The contamination, linked to firefighting foam, underscores the need for further testing and cleanup efforts as PFAS chemicals persist in the environment and pose long-term health risks.
Risk
The article discusses how risk management practices help construction companies address supply chain challenges, including labor shortages, price escalations, and material availability. It highlights the importance of technology, insurance solutions, and collaborative risk management strategies to mitigate disruptions and enhance operational efficiency in the construction sector.
A Security Scorecard analysis found that 59% of data breaches in the insurance industry involve third-party vendors, highlighting significant cybersecurity risks. While insurers and reinsurers generally have strong security postures, agencies, brokers, and IT providers are more vulnerable due to less regulatory pressure. Regional disparities also exist, with APAC firms showing weaker security scores compared to the Americas and EMEA. Ransomware remains the top cyber threat to the industry.
Litigation & Mass Torts
Thomson Reuters Wins AI Copyright ‘Fair Use’ Ruling - Insurance Journal
A federal judge ruled that Thomson Reuters' Westlaw content is protected by copyright and its use by Ross Intelligence to develop an AI-based legal platform was not fair use. This landmark decision could impact how tech companies use copyrighted material for AI training.
The Insurance Information Institute highlights the need for tort reform in Georgia to curb legal system abuse, which has driven up insurance costs for consumers and businesses. Rising litigation, severe weather events, and increasing homeownership costs contribute to Georgia’s insurance affordability crisis.
New York’s Top Court Weighs Child Victim Act Lawsuit Standards - Insurance Journal
New York’s top court is considering legal standards for Child Victims Act lawsuits, debating how specific abuse claims must be when suing the state. The case could impact hundreds of pending lawsuits, with advocates concerned about barriers for survivors recalling decades-old trauma.
New York Court Considers Sexual Abuse Lawsuit Standards - Carrier Management
New York’s top court is debating the legal standards for sexual abuse lawsuits under the Child Victims Act, focusing on how specific survivors' claims must be. The outcome could impact pending and future cases against the state, as Attorney General Letitia James balances defending New York with supporting abuse victims' rights.
NCDOI Fines UnitedHealthcare $3.4 Million Over Balance Billing of Insureds - Insurance Journal
UnitedHealthcare of North Carolina was fined $3.4 million by the NCDOI for balance billing violations related to out-of-network care, marking the largest DOI penalty in five years. The insurer agreed to corrective actions but denied wrongdoing.
Over 800 File Complaints of Sexual Abuse in Illinois Youth Facilities - Insurance Journal
Over 800 people have filed sexual abuse complaints against Illinois youth detention facilities, detailing decades of alleged misconduct by staff. Lawsuits seek damages and highlight systemic failures, with state officials under scrutiny as cases proceed.
Amazon Paying $4M to Settle Lawsuit Alleging It Took Tips From Drivers- Claims Journal
Amazon agreed to pay $4 million to settle a District of Columbia lawsuit alleging it took tips from Flex delivery drivers to subsidize wages. The settlement includes penalties, legal fees, and disclosure requirements, though Amazon denied wrongdoing.
Insurance Market
$ACGL Arch Capital reports 2024 Fourth Quarter Results
Arch Capital reported Q4 2024 net income of $925 million and a combined ratio of 85%, impacted by $393 million in catastrophe losses from hurricanes. Gross premiums rose 11.9% year-over-year, while the company estimated its share of California wildfire losses at $450–$550 million.
$AIG: AIG reports outstanding fourth quarter and full year 2024 results
AIG posted higher Q4 2024 earnings, with adjusted net income up 2% from the previous year and underwriting income nearing $2 billion. The company expects a $500 million net loss from the Los Angeles wildfires and highlighted capital management achievements, including debt reduction and a new reinsurance syndicate at Lloyd’s.
AIG Q4 General Insurance Underwriting Income Down 29% on Catastrophes - Claims Journal
AIG’s Q4 2024 general insurance underwriting income dropped 29% due to $325 million in catastrophe losses, primarily from hurricanes Milton and Helene. Despite this, net income rose to $898 million from $86 million in Q4 2023, aided by discontinued operations.
$AIZ Assurant Reports Fourth Quarter 2024 and Full-Year Financial Results
Assurant reported strong results for Q4 and full-year 2024, with double-digit earnings and EPS growth driven by Global Housing and Connected Living. The company plans to continue executing its growth strategy, focusing on expanding partnerships, product innovation, and emerging growth opportunities in 2025.
$CINF Cincinnati Financial Reports Fourth-Quarter and Full-Year 2024 Results
Cincinnati Financial reported Q4 2024 net income of $405 million, down from $1.183 billion in Q4 2023, but full-year net income rose 24% to $2.292 billion. Non-GAAP operating income increased 38% to $497 million for Q4 and 26% to $1.197 billion for the year. Net written premiums grew 15%, with a combined ratio of 93.4%.
$CNA CNA Financial Announces Q4 2024 Results
CNA Financial reported Q4 2024 net income of $21 million, impacted by a $290 million pension settlement loss, versus $367 million in Q4 2023. Core income was $342 million. Full-year net income was $959 million, with record core income of $1.316 billion. P&C net written premiums grew 10% in Q4 and 8% for the year, with a combined ratio of 94.9%.
Corebridge Financial reports hike in net income for Q4 & FY’24 at $2.2bn – Reinsurance News
Corebridge Financial reported a Q4 2024 net income of $2.2 billion, reversing a $1.3 billion loss in Q4 2023. Full-year net income rose to $2.2 billion from $1.1 billion in 2023. Adjusted pre-tax operating income (APTOI) grew 13% to $3.6 billion. The company returned $2.3 billion to shareholders and increased dividends by 10%.
Fairfax sees record underwriting profit of $1.8bn in 2024 – Reinsurance news
Fairfax Financial Holdings’ property and casualty insurance and reinsurance operations improved their consolidated combined ratio to 92.7% in 2024, achieving a record underwriting profit of $1.79 billion despite $1.01 billion in catastrophe losses. Gross premiums grew 12.6% to $32.5 billion. Adjusted operating income reached $4.8 billion, but net earnings declined to $3.87 billion.
Mercury General reported a net income of $101.1 million for Q4 2024, down from the previous year, as the company faced significant wildfire-related catastrophe losses. The company estimates wildfire losses could range from $155 million to $325 million, with reinsurance covering a portion of the impact, and anticipates further recovery from subrogation and its reinsurance program.
MS Amlin Underwriting (MS AUL) posts improved profit for Q3’24 – Reinsurance News
MS Amlin Underwriting Limited (MS AUL) reported a 5% rise in insurance service profit to £130 million for January–September 2024. Despite an 11% decline in net premiums written (£1.11 billion), net premiums earned grew 19% to £1.15 billion. The combined ratio increased slightly to 88.8%, while post-tax profit rose to £103 million.
$PLMR Palomar Holdings, Inc. Reports Fourth Quarter & Full Year 2024 Results
Palomar Holdings, Inc. reported strong Q4 2024 results, with net income rising 35% to $35 million and adjusted net income up 47.5% to $41.3 million. Gross written premiums grew 23.3% to $373.7 million. For the full year, net income increased 48.4% to $117.6 million. The 2025 outlook targets $180–$192 million in adjusted net income.
$UFCS United Fire Group, Inc. Reports Fourth Quarter and Full Year 2024 Results
United Fire Group reported a strong Q4 2024 with net income rising to $31.4 million and net written premiums up 13% to $278.5 million. The company achieved the highest level of premiums in its history and the best combined ratio since 2015, driven by growth in commercial and reinsurance business. For the full year, net income reached $62 million, with a 15% increase in premiums and strong investment returns.
Florida Announces Insurance Rate Reductions – Carriermanagement
Florida Governor Ron DeSantis announced progress in stabilizing insurance rates, with Citizens Property Insurance reducing premiums by 5.6% statewide. Major auto insurers also cut rates. Recent reforms curbed litigation, increased competition, and attracted 11 new insurers. Homeowners’ premium hikes dropped from 21% in 2023 to a projected 0.2% for 2025.
Gallagher Bassett’s report highlights that economic volatility, climate change, and technology are reshaping the insurance industry, with rising claims costs, labor shortages, and cybersecurity risks as top concerns. Insurers are responding with premium increases, stricter underwriting, AI adoption, and flexible work arrangements to improve efficiency and talent retention.
Lloyd’s of London is playing an increasingly vital role in North American insurance, offering solutions for complex risks during the ongoing hard market cycle. Richard Kerr, CEO of Novatae Risk Group, discusses market opportunities and strategies for brokers.
Reinsurance Market
Gallagher Re on the renewables market in 2025 | Insurance Business America
Gallagher Re’s renewable energy practice expanded in 2024, growing its presence in Asia and hosting industry seminars. In 2025, the firm plans to support renewable energy growth through client partnerships, technical expertise, and market alignment, focusing on wind, solar, and clean energy solutions.
Re/insurance CEOs more confident in revenue growth than peers – PwC | Insurance Business America
PwC’s 28th Annual Global CEO Survey reveals that 56% of re/insurance CEOs are confident in revenue growth over the next year, surpassing global peers. However, climate change, macroeconomic volatility, and inflation remain top concerns for the industry.
Casualty Reinsurance Still Attractive: Arch CEO - Carrier Management
Arch Capital CEO Nicolas Papadopoulo finds casualty reinsurance still attractive despite market challenges, highlighting strong premium growth in 2024. While some executives express concerns over social inflation and risk-adjusted returns, Arch sees opportunities, especially after acquiring Allianz’s MidCorp and Entertainment insurance units.
MS Re’s FY’24 Q3 result boosted by strong underwriting and investment performance – Reinsurance News
MS Reinsurance (MS Re) demonstrated strong financial growth in the first nine months of 2024, driven by underwriting gains, premium expansion, and investment income. The combined ratio improved to 90%, while net premiums written rose to $2.9 billion. Investment income surged to $158 million, boosting net income to $222 million. The full-year forecast targets $310 million in net income.
Sompo International's GPW reach $12.47bn in 3Q FY'24 - Reinsurance News
Sompo International’s gross premiums written reached $12.47 billion in the first nine months of FY2024, driven by growth in Global Markets and Reinsurance. Despite a 1.3-point increase in the combined ratio to 93.7% and a decline in underwriting income, adjusted profit rose to $1.059 billion, aided by net investment income and strategic initiatives.
Tokio Marine Holdings reported a 5.4% increase in net premiums for its international non-life segment in Q3 FY2024, driven by growth in North America. International profits rose 4.4% year-over-year, though the life insurance segment saw increased losses.
Ex-AIG Chief Duperreault Secures $700M for Mereo Reinsurance Startup - Carrier Management
Former AIG CEO Brian Duperreault’s Bermuda-based Mereo Advisors secured $700 million to launch Mereo Reinsurance, focusing on specialty and P&C lines with $520 million in first-year underwriting. The platform, backed by Ares Management, Susquehanna, and Andover Cos, has regulatory approval and an A- AM Best rating.
MS Re's FY'24 Q3 result boosted by strong underwriting and investment performance - Reinsurance News
MS Reinsurance reported strong financial growth in the first nine months of FY2024, with net premiums rising to $2.9 billion and investment income surging to $158 million. The combined ratio improved to 90%, and net income increased to $222 million, though full-year forecasts were slightly lowered due to large losses.
Gov supported cyber risk pool would encourage greater adoption: Lockton Re - Reinsurance News
Lockton Re’s report highlights the need for a government-supported cyber risk pool to address potential large-scale cyber catastrophes that could exceed the capacity of the private insurance market. Drawing on global examples like Flood Re and TRIA, the report argues that public-private partnerships can enhance cyber resilience, particularly for SMEs, though challenges in implementation remain.
Technology and Innovation
Insurtech funding declined by 5.6% in 2024, with Q4 seeing a sharp drop, but AI-focused startups gained traction, securing 42.3% of deals. Gallagher Re highlights AI’s growing role in underwriting and claims, though the sector is shifting toward profitability and sustainable growth.
Lockton establishes digital office | Insurance Business America
Lockton has launched a digital office to enhance data, analytics, and technology strategies, appointing Claude Yoder as chief data, analytics, and digital officer. The office will drive digital transformation, operational efficiency, and data-driven decision-making across Lockton’s global operations.
People Moves and Industry News/ Thought Leadership
Chubb Appoints Sam Codispoti Head of Excess Casualty for Major Accounts
Chubb appointed Sam Codispoti as Executive Vice President of Major Accounts Excess Casualty. Codispoti, a Chubb veteran since 2003, will oversee strategic direction and operations for the division. His extensive experience in primary and excess casualty positions him to enhance risk management solutions and strengthen broker and client relationships.
Everest Insurance International appointed Eelco van Keimpema as Head of Liability and Industry Practices, Europe. With over 20 years of experience, he previously held leadership roles at AIG, including Head of Casualty Europe. Van Keimpema looks forward to contributing to Everest’s continued success in his new role.
Hiscox names Alexandra Furth as head of claims for US operations | Insurance Business America
Hiscox has appointed Alexandra Furth as head of claims for its U.S. operations, bringing over 20 years of legal and claims experience from roles at AIG, Liberty Mutual, and more. Furth will oversee Hiscox USA's claims practice as the company continues its digital transformation and growth.
BMS appointed Genna Biddell as Managing Director and Head of London P/C Re, bringing 25 years of experience from Howden Re, Willis Re, and Aon Re. MGA DUAL UK made three senior appointments: Steve Kelly as MD of Construction, James Ramira as MD of Regional P/C and Social Care, and Georgie Petrou as Head of Strategic Accounts.
Stanley Choi of Marsh McLennan highlights the impact of social inflation on liability premiums, the growing role of data in managing risks, and the transformative potential of generative AI in enhancing efficiency and client service in the insurance industry. He emphasizes the importance of relationships and data-driven insights in navigating challenges and delivering value.
Olga Collins, CEO of Worldwide Broker Network, highlights key challenges for the insurance industry in 2025, including talent retention, AI integration, and climate change impacts. She emphasizes the importance of risk management, creativity, and consulting in driving value, while urging the industry to enhance its role in supporting society.
Sompo Holdings Restructures Business Into 2 Global Segments - Insurance Journal Sompo Holdings is restructuring into two global segments: Sompo Property and Casualty (P&C) and Sompo Wellbeing, effective April 2025. This change aims to streamline operations, enhance innovation, and address evolving market needs, including Japan’s aging population.
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