Weekly Articles
Natural disasters caused US$368 billion in damages in 2024 | Insurance Business America
The article reports that natural disasters in 2024 resulted in an estimated $368 billion in damages globally, with climate change contributing to the increasing frequency and severity of such events. It underscores the importance of disaster preparedness and the evolving role of insurers in managing financial risks.
Insured California wildfire losses to near or exceed $40bn, poll suggests - Reinsurance News
A recent poll suggests that insured losses from California wildfires could approach or exceed $40 billion, reflecting the increasing severity and frequency of such disasters. The report underscores the challenges insurers face in managing wildfire risks and the potential impact on premiums and coverage availability.
Aon flags 60% protection gap as nat cat losses reach $368bn in 2024 - Reinsurance News
Aon reports that natural catastrophe losses in 2024 have reached $368 billion, with a significant 60% protection gap highlighting the underinsurance challenge. The findings stress the need for enhanced resilience measures and better risk mitigation strategies to address the growing financial impact of climate-related disasters.
Growing Concerns About Wildfires in Carolina Thanks to Kindling Left by Helene - Claims Journal
Officials are increasingly concerned about wildfire risks in western North Carolina due to debris left behind by Hurricane Helene, which has created a significant fire hazard. Experts are urging proactive measures, including clearing debris and enhancing fire prevention strategies, as drier-than-usual conditions persist.
LA Braces for Fire Risk From Bone-Dry Winds as Winter Rains Lag - Claims Journal
Southern California is facing extreme fire risks due to strong Santa Ana winds and a prolonged lack of rain, with gusts reaching up to 100 mph. Authorities have reported multiple small fires and power outages affecting thousands of residents, while utility companies have preemptively cut power to prevent new blazes.
Report highlights urgent need for cyber insurance | Insurance Business America
The article highlights the growing urgency for cyber insurance as cyberattacks become more sophisticated and costly, with data breach costs rising globally. It emphasizes the need for a proactive cybersecurity approach, including employee training, multi-factor authentication, and partnerships with insurers to mitigate financial and operational risks.
HPE Investigating Breach Claims, Says No Business Impact - Claims Journal
Hewlett Packard Enterprise (HPE) is investigating claims of a data breach by the hacking group IntelBroker, which has previously targeted other tech firms. HPE stated that it has activated its cyber response protocols and found no operational impact or evidence of customer data exposure.
EU Plans Ban on ‘Forever Chemicals’ in Consumer Products -Insurance Journal
The European Commission plans to propose a ban on PFAS, or "forever chemicals," in consumer products due to their environmental and health risks, with exemptions for essential industrial uses. The move follows increasing concerns and litigation over PFAS contamination and potential health impacts.
Report Shows Cargo Theft Surged to Record Levels in 2024 – Claims Journal
Cargo theft surged 27% in 2024 across the U.S. and Canada, hitting record highs. Sophisticated criminal tactics targeted high-value goods like electronics, copper, and produce. As threats evolve, securing supply chains is more critical than ever.
The article discusses the rising abuse and molestation claims in the nonprofit sector, emphasizing the need for stricter hiring practices and thorough background checks to mitigate risks. It highlights how nonprofits must adopt proactive policies to protect vulnerable individuals and ensure compliance with regulatory requirements.
Purdue Pharma, Sacklers Reach $7.4B National Opioid Settlement – Claims Journal
Purdue Pharma and the Sackler family reached a $7.4 billion settlement to resolve opioid lawsuits, with $6.5 billion from the Sacklers. Victims and governments will receive compensation, but nonparticipants can still sue. Approval by a bankruptcy judge is pending.
New York Obtains $1.065B Judgment Against Accused Predatory Lender – Insurance Journal
NY Attorney General secures $1.065B judgment against Yellowstone Capital for predatory lending. Settlement provides $534.5M in debt relief to 18,000+ small businesses nationwide. A victory for ethical lending and small business protection.
LinkedIn Sued for Disclosing Customer Information to Train AI Models - Claims Journal
A class-action lawsuit has been filed against LinkedIn, alleging it disclosed Premium users' private messages to third parties for AI training without permission. Plaintiffs claim LinkedIn quietly introduced a privacy setting and updated its policy in September 2024 to allow data use for AI, despite prior training. The lawsuit seeks damages for breach of contract and privacy violations under California and federal laws.
Video Game Maker Paying $20 Million in FTC Kid-Privacy Case - Claims Journal
The maker of the popular video game Genshin Impact has agreed to pay $20 million to settle FTC claims that it violated children's privacy laws and misled players about the true costs of in-game purchases. The settlement requires the company to improve parental consent protections and increase transparency regarding in-game spending
Citigroup Must Face New York Lawsuit Over Handling of Fraud Scams - Claims Journal
A federal judge has ruled that Citigroup must face a lawsuit from the New York Attorney General, alleging the bank failed to protect customers from fraud scams and did not properly reimburse victims. The judge found that Citibank may have violated federal electronic transfer laws, though some claims were dismissed. The lawsuit seeks restitution and civil penalties, arguing the bank's security systems failed to prevent fraudulent activities.
Walgreens Ignored Red Flags in Dispensing Opioids, US Says - Claims Journal
The U.S. Department of Justice has sued Walgreens, alleging the company dispensed opioids while ignoring red flags that the prescriptions lacked a legitimate medical purpose. The lawsuit claims Walgreens filled millions of prescriptions over 12 years and sought reimbursement under federal healthcare programs, contributing to the opioid crisis. Walgreens denies wrongdoing and argues the government is imposing unfair regulatory burdens.
Fire-Damaged Cannabis Grower Loses $1.3 Million Business Income Loss Claim - Insurance Journal
A federal judge ruled against a Connecticut cannabis grower's $1.3 million business income loss claim, stating that the loss was due to damaged marijuana plants, which were not covered under the insurance policy. The court found that the company's inability to sell the affected crops did not constitute a covered suspension of operations under the business interruption policy.
What's happening with US P&C underwriting results? – Insurance Business Mag
According to an AM Best report, the US property & casualty industry showed improved underwriting results through Q3 2024, driven by premium growth, better pricing, and catastrophe management. Despite challenges from Hurricane Milton and California wildfires, personal lines propelled the gains.
Munich Re predicts slower growth and higher inflation by 2035 | Insurance Business America
Munich Re forecasts slower global economic growth and higher inflation by 2035, driven by demographic shifts and rising climate-related costs. The report emphasizes the need for insurers to adapt to evolving economic conditions and increased risk exposure.
Travelers reports Q4 results - Travelers.com
Travelers reported strong financial results for Q4 2024 and the full year, with core income reaching a record $2.1 billion for the quarter and $5 billion for the year, reflecting a 64% increase. The combined ratio improved to 83.2%, driven by strong underwriting profitability and favorable reserve development. Net earned premiums grew 9% to $10.9 billion, while net investment income increased 21% to $3 billion. The company highlighted its continued focus on strategic investments in technology and underwriting expertise, positioning it for long-term growth. Travelers also addressed its response to the recent California wildfires, emphasizing customer support and claims processing efforts.
RLI Reports Fourth Quarter and Year-End 2024 Results
RLI reported its 29th consecutive year of underwriting profitability, with 12% premium growth and a 22% rise in underwriting profits. The combined ratio was 86.2% for the year. Strong results in Casualty, Property, and Surety segments drove growth, while the company remains focused on disciplined underwriting and market opportunities.
Fitch Ratings revises Mercury General’s outlook to Negative, citing wildfire losses and reinsurance uncertainties. While the company remains financially stable, increased catastrophe risks and tightening reinsurance costs may pressure profitability. Rate increases provide some resilience.
The article discusses how reinsurers' 10-15% share of the Los Angeles wildfire industry loss is unlikely to significantly impact pricing trends, according to Evercore. Despite the financial impact, the current trajectory of reinsurance pricing is expected to remain steady due to broader market dynamics.
Gallagher Re's Vickers states that reinsurers are in a solid position for 2025 following the January 1 renewals, with improved risk-adjusted returns and market stability. The report highlights favorable conditions despite ongoing challenges such as inflation and natural catastrophe risks.
Travelers ups catastrophe XoL reinsurance cover for 2025 with higher retention - Reinsurance News
Travelers has expanded its catastrophe excess-of-loss (XOL) reinsurance coverage for 2025 with a higher retention level, aiming to enhance financial resilience amid rising natural disaster risks. The move reflects the insurer’s strategic approach to managing exposure and ensuring long-term stability.
FEMA Transfers $758M in US Flood Program Risk to 27 Private Reinsurers - Claims Journal
FEMA has transferred $758 million in flood risk from the National Flood Insurance Program (NFIP) to 27 private reinsurers as part of its 2025 reinsurance renewal. The arrangement covers losses above $7 billion from a single flood event, with FEMA paying $140 million in premiums. This move aims to enhance the NFIP's financial resilience against large-scale flood disasters.
School Employee Kicked 25 Times in 11 Days Denied Workers Comp - Claims Journal
A Virginia school employee who was repeatedly kicked by a student over 11 days was denied workers’ compensation benefits, as the injury was deemed cumulative trauma rather than resulting from a single identifiable incident. The Virginia Workers’ Compensation Commission ruled that state law does not cover injuries that occur gradually over time.
How AI Changed Business in 2024 | Insurance Thought Leadership
The article discusses how AI significantly transformed businesses in 2024, with 98% of organizations increasing investments in AI and data. Companies reported measurable business results, such as improved customer acquisition and productivity gains. Despite progress, challenges persist, with cultural barriers being the biggest obstacle to AI adoption. The demand for AI leadership roles is rising, though many organizations still struggle to define their responsibilities.
Digital Connectivity Reshapes Insurance Communications | Insurance Thought Leadership
Digital connectivity is transforming insurance communications by enhancing collaboration, streamlining workflows, and improving efficiency through real-time data integration and AI-powered automation. The shift towards digital platforms helps carriers and agents overcome legacy system challenges and adopt more connected, tech-enabled processes.
MGT Insurance launches MGT Specialty, taps Chad Nitschke as GM – Insurance Business Mag
MGT Insurance launches MGT Specialty, an E&S company serving small businesses nationwide, led by industry veteran Chad Nitschke. With data-driven solutions, MGT aims to address underserved risks in the $95B E&S market.
Insurtechs’ Approach to Wildfire Insurance: Part I – Delos - Insurance Journal
Delos Insurance Solutions is leveraging advanced modeling and satellite data to improve wildfire risk assessment and underwriting in California. By incorporating wind, weather, and vegetation data, Delos aims to provide coverage in areas deemed too risky by traditional insurers while maintaining selectivity in high-exposure regions.
Insurtechs’ Approach to Wildfire Insurance: Part II – Kettle - Insurance Journal
Kettle, an insurtech company, uses AI-driven modeling and parametric insurance to better assess and underwrite wildfire risk, focusing on high-exposure areas like California. The company leverages vast data sources and advanced simulations to provide faster claims payouts and more precise risk evaluation.
Insurtechs’ Approach to Wildfire Insurance: Part III – Faura - Insurance Journal
The article explores how insurtech company Faura is addressing wildfire risk by leveraging structural data to assess property resilience and support insurers in high-risk areas. Faura’s approach focuses on analyzing building materials and design features to enhance underwriting decisions and improve profitability.
Very powerful AI is close. How close? 4 experts discuss | World Economic Forum
“A century of human progress in science could be achieved by AI in just 5 or 10 years, says Dario Amodei at Davos. Also in discussion about AI were Andrew Ng, Yoshua Bengio and Yejin Choi. Industries in the Intelligent Age is a theme of the World Economic Forum’s Annual Meeting in Davos from 20-24 January 2025.”
NAIC faces $6.6 million deficit as 2025 budget prioritizes tech and staffing | Insurance Business America
The NAIC is facing a projected $6.6 million deficit in its 2025 budget, which prioritizes investments in technology and staffing to enhance operational efficiency. The budget reflects a strategic focus on modernizing egulatory frameworks and supporting state insurance departments.
Arch Capital Group Appoints Prashant Nema EVP, Deputy Chief Operations Officer – Arch Group
Arch Capital Group promotes Prashant Nema to EVP & Deputy COO. Retaining CIO duties, he’ll now oversee Arch’s Global Services Organization, driving IT innovation and leveraging global talent to scale operations.
Ascot makes key appointments to expand specialty lines | Insurance Business America
Ascot has announced key leadership appointments to expand its specialty insurance lines, aiming to strengthen its market presence and enhance underwriting capabilities. The strategic hires are expected to drive growth and innovation across multiple specialty sectors.
Everest Group welcomes Jim Williamson as CEO | Insurance Business America
Everest Group has appointed Jim Williamson as its new CEO, bringing his extensive leadership experience to drive the company's strategic growth and operational excellence. The move aligns with Everest's focus on enhancing its global presence and innovation in the insurance and reinsurance sectors.
Henry Mummé-Young named CUO of SCOR UK & Active Underwriter for SCOR Syndicate - Reinsurance News
Henry Mumme-Young has been appointed as the Chief Underwriting Officer of SCOR UK and Active Underwriter for SCOR Syndicate. His new role is expected to strengthen SCOR's underwriting capabilities and support its strategic growth in the UK market.
AM Best removes SCOR's ratings from under review - Reinsurance News
AM Best has removed SCOR's ratings from under review and affirmed the company's financial strength and issuer credit ratings with a stable outlook. The decision reflects SCOR's improved risk-adjusted capitalization and strategic initiatives to enhance profitability and operational efficiency
Core Specialty completes London Aviation Underwriters acquisition - Reinsurance News
Core Specialty has completed its acquisition of London Aviation Underwriters, strengthening its position in the global aviation insurance market. The acquisition aims to enhance Core Specialty’s underwriting expertise and expand its product offerings.
XS Brokers appoints Annie Dawson as SVP to boost US expansion – Insurance Business Mag
XS Brokers appoints Annie Dawson as SVP of National Carrier Relations & Strategy. With 17+ years of experience, she’ll strengthen carrier partnerships and drive national growth.
Zurich North America appoints new chief data officer - Insurance Business Mag
Zurich North America appoints Kristen Bessette as Chief Data Officer, enhancing its AI and data strategy. Her expertise will drive tech integration, empowering employees and elevating customer value. A big step toward the future of insurance innovation.
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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