Weekly Articles
Insurance Market
Europe’s largest insurers achieve record earnings in 2024, but face challenges: Moody's
Europe's four largest insurers—Allianz, AXA, Generali, and Zurich Insurance—achieved a combined €28.6 billion in earnings for FY 2024, marking a 15% increase from the previous year. This growth was driven by strong performances in both property and casualty (P&C) and life and health (L&H) segments, with P&C premiums rising by 9% and L&H premiums increasing by 14%, attributed to price hikes and greater exposure, particularly in retail insurance. However, Moody's anticipates slower profit growth in 2025 due to rising geopolitical risks and market uncertainties.
Imbs joins Arthur J. Gallagher & Co. as firm expands
Arthur J. Gallagher & Co. has acquired St. Louis-based Imbs Holdings, Inc., a retail insurance broker serving commercial and personal lines clients across the United States. Chris Imbs and his team will join Gallagher’s South Central retail property/casualty brokerage operations, reporting to regional leader Bret VanderVoort. This acquisition follows Gallagher’s recent purchase of Australia-based Tresidder Insurance Brokers, as the company continues its international expansion.
Travelers has introduced Cyber Risk Services, enhancing its cyber liability policies with features like a 24/7 Cyber Risk Dashboard, expert guidance, and personalized onboarding to help clients mitigate cyber threats. Additionally, Willis has launched AdWrap, an insurance program offering customizable coverage and cost transparency for businesses involved in marketing and advertising production.
Risk Digitization Top Tech Priority for US Insurers
A recent study by insurtech Cytora reveals that 76% of senior leaders in global insurance firms prioritize risk digitization—including processes like new business, renewals, claims, and mid-term adjustments—as their main technological investment for the next two years. The anticipated benefits include revenue growth, enhanced transaction processing capacity, and improved service to brokers and customers.
Social Inflation is not going away in 2025 for most insurers, says BMO
A recent report from BMO Capital Markets indicates that social inflation will persist for most insurers in 2025, marking the third consecutive year necessitating additional reserves. The report highlights that lawsuit inflation trends have exceeded 10%, posing risks to loss-ratio profit margins for approximately 33% of insurers. Additionally, insurance inflation remains significantly above its long-term correlation with U.S. inflation, currently at 60%.
The new role of insurance networks: guiding agencies through change and complexity
Insurance networks are evolving to serve as strategic partners for independent agencies, offering guidance in areas such as strategic planning, economic trend analysis, and technological integration. By assisting agencies in setting and achieving structured goals, filtering critical industry insights, and navigating advancements like artificial intelligence, these networks help agencies remain competitive and focused amid a complex insurance landscape.
Triple-I’s 2024 Annual Report Underscores Commitment to Education, Research and Member Value | III
The Insurance Information Institute's 2024 Annual Report, titled "Now More Than Ever," highlights the organization's efforts to inform stakeholders about legal system abuses affecting insurance costs and its rapid response to events like hurricanes and the Baltimore bridge collapse. The report also outlines key initiatives, including managing claims costs, addressing climate risks, fostering innovation, and tackling challenges to insurance affordability and availability.
Trump tariffs will drive up US insurance claims, says LMA
The Lloyd's Market Association (LMA) has expressed concerns that the Trump administration's tariffs will increase U.S. insurance claims costs, particularly in auto and homeowners' insurance, due to higher prices for imported auto parts and construction materials. These increased costs are expected to lead to higher insurance premiums for consumers.
Viewpoint: Steady Growth Amid Market Cycles Is Possible
Insurance brokers can achieve steady growth despite market cycles by leveraging mergers and acquisitions and optimizing placement strategies with insurers. Travis Shank emphasizes that the current trend toward more stable, gradual pricing shifts allows brokers to strengthen client relationships and use data analytics to navigate the evolving landscape effectively.
11 InsurTechs join Lloyd’s Lab Accelerator programme
Lloyd’s has selected 11 InsurTech startups for the 14th cohort of its Lab Accelerator program, including new participants like Faura, QualRisk, and Supercede Technology. This round introduces a new theme focused on shaping the future of reinsurance in Bermuda, while continuing to emphasize data-driven underwriting and innovative insurance products.
Reinsurance Market
April reinsurance renewal sees softening trend continue, but discipline maintained
The April 1, 2025, reinsurance renewals continued the gradual softening trend observed earlier in the year, with reinsurers showing strong appetites for growth while maintaining disciplined underwriting practices. Notably, Japanese property catastrophe reinsurance rates decreased by up to 15%, especially for higher layers and loss-free accounts, as cedants leveraged favorable loss histories and enhanced data to negotiate better terms.
Convex sees 2024 net income hit $506m as underwriting result improves 57%
Convex Group reported a 57% increase in its 2024 underwriting result, reaching $381 million, and a net profit of $506 million, marking its second consecutive year of profitability. The company's gross written premiums grew by 22% to $5.166 billion, with a combined ratio improvement to 87.6%, despite natural catastrophe events like Hurricane Milton and the Calgary hailstorms.
Reinsurers quietly confident about US liability at latest treaty renewal
Reinsurers are expressing cautious optimism regarding U.S. liability lines during the latest treaty renewals, anticipating favorable conditions despite market complexities. This confidence is bolstered by expectations of rate increases, particularly in excess and umbrella policies, which could rise by up to 20%.
Reinsurance sidecar market seen ~50% bigger by Gallagher. Aon notes Q1 wildfire impacts
The reinsurance sidecar market has experienced significant growth, with Gallagher reporting a ~50% increase in capacity, driven by new entrants and expanded offerings from established entities like Everest's Mt. Logan. However, Aon cautions that the January 2025 California wildfires may negatively impact returns for many sidecar structures, as these contracts typically share in the profits and losses of non-proportional reinsurance portfolios.
Well-balanced reinsurance supply & demand in Greater China at 1.4 renewals: Aon
Aon's recent Reinsurance Market Dynamics report indicates that at the April 1, 2025 renewals, Greater China's reinsurance market experienced a well-balanced supply and demand, with increased capacity and healthy competition leading to lower pricing for loss-free property risks. Despite economic and geopolitical challenges, reinsurance demand in China remains stable, and there's a growing interest in alternative products like parametric solutions and catastrophe bonds, especially following significant events such as Typhoon Yagi and the Taiwan earthquake.
Commercial Lines
AI vs brokers? How tech-robo partnerships are redefining the sector
Douglas Weisskopf, client company manager at The Hartford Steam Boiler, emphasizes the enduring importance of human interaction in insurance services, particularly in claims adjustment. While acknowledging the growing role of AI in automating simple, repetitive tasks, Weisskopf asserts that complex decisions, especially in underwriting, will continue to require a human touch to ensure personalized and effective client service.
FTC Concerned About Privacy Protections in 23andMe Bankruptcy
The U.S. Federal Trade Commission (FTC) has expressed concern over the potential sale or transfer of Americans' personal information following 23andMe's recent bankruptcy filing. FTC Chairman Andrew Ferguson emphasized that any purchaser of 23andMe's assets should adhere to the company's existing privacy policies to protect consumer data. This follows a significant data breach in 2023, where hackers exposed the personal data of nearly 7 million customers, raising alarms about the handling of sensitive genetic information
How A Long-Lived Super-Regional Carrier is Implementing AI in Claims
Westfield, a super-regional property/casualty insurance carrier based in Ohio, is integrating generative AI into its claims processes to enhance efficiency and address challenges such as an aging workforce. By implementing AI-driven tools for tasks like summarizing medical records and demand packages, the company aims to support adjusters in making accurate evaluations and expedite the learning curve for new employees. Initial results have exceeded expectations, with employees expressing optimism about the technology's potential to improve workflows and customer service.
Oracle Tells Clients of Second Recent Hack, Log-In Data Stolen
Oracle Corp. has reported a second cybersecurity breach within a month, informing clients that a hacker accessed a legacy system and stole old client log-in credentials, including usernames, passkeys, and encrypted passwords. The FBI and cybersecurity firm CrowdStrike are investigating the incident, which is separate from a previous breach affecting healthcare customers.
Report: 75% of Small Businesses Had Workplace Injuries, Mental Health A Growing Concern
A recent report by Pie Insurance reveals that 75% of small businesses experienced workplace injuries in the past year, with mental health-related injuries rising to 22%, surpassing physical injuries like slips and falls at 20%. The study also found that 42% of businesses operating commercial vehicles reported auto-related incidents, each costing an average of $5,725, and 81% of small businesses are open to adopting AI tools to enhance safety measures.
The Future of Premium Audits: Using AI Assistants to Streamline Data Collection
In the article "The Future of Premium Audits: Using AI Assistants to Streamline Data Collection," Chris Schrenk discusses how AI assistants can enhance the efficiency of premium audits in the insurance industry. By automating data collection and validation, these AI tools can reduce the time-consuming aspects of audits, leading to faster and more accurate assessments. This improvement not only benefits insurers by ensuring precise premium calculations but also enhances client satisfaction by minimizing delays and discrepancies.
Emerging Risks
AI vs AI: Firms need to step up their cyber game or risk falling to threat actors
The article emphasizes the escalating cyber threats posed by AI, highlighting that malicious actors are increasingly using advanced AI tools to bypass traditional fraud detection systems. Rajeev Gupta, co-founder and chief product officer at Cowbell, asserts that integrating AI into cybersecurity measures is now essential, as adversaries are already leveraging it. He advocates for a hybrid approach where AI's data processing capabilities are combined with human oversight to effectively manage complex risks and maintain ethical standards.
Insurance-linked securities market adjusts to riskier landscape: ILS NYC 2025
At the ILS NYC 2025 conference, industry leaders discussed the insurance-linked securities (ILS) market's adaptation to an increasingly complex risk environment. Key topics included the integration of advanced technologies, such as space-based data, to enhance parametric insurance products for wildfire and drought risks. The conference also highlighted the record-breaking $7.1 billion in catastrophe bond issuances during the first quarter of 2025, underscoring the market's robust growth and investor confidence.
Protection Gap Expected to Worsen Across All Lines of Insurance Through 2030: Bain & Co.
A Bain & Company report warns that insurance protection gaps are projected to widen across all lines by 2030, with only 25-33% of natural disaster damages and less than half of mortality losses expected to be covered. The study attributes this trend to emerging risks like increased natural disasters and cyberattacks, challenges in aligning pricing with risk, and declining interest in life insurance among younger generations. To address these issues, Bain suggests insurers focus on risk prevention and leverage AI-driven technologies, which could enhance revenue by 10–15%, reduce operating expenses by up to 30%, and decrease property and casualty claim losses by 30–50%.
Tariffs will cause widespread insurance disruption, warns Fed Reserve advisor
Tariff increases are expected to disrupt the U.S. insurance industry by driving up the cost of claims, particularly in auto and homeowners’ insurance, due to more expensive imported parts and construction materials. Experts warn this could lead to billions in added annual costs for insurers and significantly higher premiums for consumers and businesses.
What Forecasters Mean When They Warn of a 100-Year Flood
A "100-year flood" refers to a flood event that has a 1% chance of occurring in any given year, as defined by the U.S. Geological Survey. Despite the terminology, such floods can occur more frequently than once every hundred years, especially with changing climate conditions. Factors like increased atmospheric moisture due to global warming have led to heavier and more frequent precipitation events, making extreme floods more common in certain regions. For instance, Houston experienced three separate 500-year flood events between 2015 and 2017.
Litigation & Mass Torts
Jury orders Chevron to pay more than $744m for destroying Louisiana wetlands
Chevron has been ordered to pay over $744 million for environmental damage to Louisiana’s coastal wetlands caused by Texaco’s oil operations. A jury found violations of state regulations, prompting possible settlements in similar lawsuits. Chevron plans to appeal. Louisiana’s wetlands continue to face severe degradation, threatening storm protection and local communities.
Judge Rejects J&J’s $10 Billion Baby Powder Settlement
A U.S. bankruptcy judge has rejected Johnson & Johnson's $10 billion proposal to settle over 60,000 lawsuits alleging that its talc-based products cause ovarian cancer, marking the company's third unsuccessful attempt to resolve these claims through bankruptcy. The judge cited insufficient support from claimants and concerns about extending legal protections to non-bankrupt entities. J&J stated it will not appeal the decision but intends to contest the claims in court, maintaining that its products are safe and do not cause cancer.
Several Companies Must Face Lawsuit Over Tainted Baby Food, Judge Rules
A U.S. District Judge has ruled that companies including Walmart, Beech-Nut, and Gerber must face a nationwide lawsuit alleging that their baby food products contained toxic heavy metals, leading to neurological damage such as autism spectrum disorder and attention deficit hyperactivity disorder in children. The judge determined that parents can attempt to prove claims of defective manufacturing, negligence, and failure to warn, based on allegations that some defendants did not adhere to internal safety limits for arsenic, cadmium, lead, and mercury, while others lacked such criteria.
State Farm escapes liability in Maryland lawsuit over alleged false truck accident report
A federal judge in Maryland dismissed a lawsuit filed by trucking business owner William Young, who alleged that State Farm wrongly reported his involvement in a January 2023 accident, leading to insurance repercussions that harmed his business and reputation. The court found that Young failed to sufficiently allege key legal elements for his claims, including deceptive business practices, fraud, and negligence, resulting in the dismissal of all claims with prejudice.
Supreme Court: Truck Driver Can Seek Treble Damages Over THC in CBD Product
The U.S. Supreme Court ruled 5-4 that truck driver Douglas Horn can pursue triple damages under the Racketeer Influenced and Corrupt Organizations Act (RICO) against Medical Marijuana Inc., alleging that their CBD product, falsely advertised as THC-free, led to his termination after a failed drug test. The Court determined that Horn's firing constituted a business injury, allowing his RICO claim to proceed, though it did not address the merits of his underlying allegations.
TikTok’s New Owner Stands to Inherit 1,500 Safety, Privacy Suits
TikTok faces approximately 1,500 pending lawsuits in the U.S. related to child safety and privacy, alleging the platform contributes to youth mental health issues and mishandles sensitive user data. Potential buyers of TikTok's U.S. operations, which its parent company ByteDance Ltd. is seeking to sell, would likely inherit these legal challenges, potentially exposing them to significant financial liabilities.
Universal Insurance hit with fine as it returns $30 million to fund
Universal Insurance Holdings Inc. has agreed to return over $30 million to Florida's Hurricane Catastrophe Fund and pay $4 million in fines following allegations of improperly seeking reimbursement for ineligible claims related to Hurricane Irma. Although the company denies any fraudulent activity, it has committed to updating its policies and procedures to prevent similar issues in the future.
People Moves
Alliant expands Utah team with VP hire
Alliant Insurance Services has appointed Danny Reeder as vice president in its employee benefits group, based in Utah. Reeder brings over 13 years of experience in strategic benefits consulting, self-funding, and cost containment, and will focus on helping employers design optimized, cost-effective benefit strategies.
Ariel Re appoints Rohan Pai as Chief Financial Officer
Ariel Re has appointed Rohan Pai as Chief Financial Officer, effective April 1, 2025. Based in Bermuda, Pai will oversee the company's financial reporting and treasury functions. He brings nearly 25 years of industry experience, having previously served as CFO at Velocity Risk and held roles at Selective Insurance and RenaissanceRe. CEO Ryan Mather expressed confidence in Pai's expertise to support Ariel Re's growth and market position.
AXA XL promotes two on Americas Cyber Insurance Team
AXA XL has named Greg Chambers Head of Complex Accounts and promoted Caitlin Alpern to Team Lead within the Cyber & Technology unit. Chambers will lead underwriting for high-risk cyber portfolios, while Alpern will manage key eastern U.S. accounts. These moves reflect AXA XL’s investment in talent to meet rising cyber insurance demand.
Everest Appoints Joe Fobert to Lead U.S. Insurance Retail Casualty and Industry Practices
Everest Insurance® has named Joe Fobert Head of U.S. Retail Casualty and Industry Practices. Reporting to EVP William Hazelton, Fobert brings over 30 years of underwriting experience, including leadership roles at Chubb, AIG, and Crum & Forster. He will lead Everest’s continued transformation and growth in U.S. Casualty.
Liberty Mutual Insurance has appointed Dieter Korte as President of Middle Market, Global Risk Solutions North America, reporting to GRS NA President Marc Orloff. With over 30 years of industry experience, Korte aims to strengthen risk solutions for mid-size companies across specialized sectors like construction and life sciences.
The Hanover names Richard W. Lavey as COO
The Hanover Insurance Group has appointed Richard W. Lavey as Chief Operating Officer, a new role in which he will focus on enhancing integration between business and technology functions while maintaining oversight of several core business areas. Lavey, a 35-year industry veteran, is recognized for his leadership and strategic contributions since joining The Hanover in 2004.
W. R. Berkley Corporation Names Michael G. MacMullin President of Berkley Luxury Group
W. R. Berkley Corporation has named Michael G. MacMullin president of Berkley Luxury Group, succeeding Shadi Albert. MacMullin brings over 25 years of P&C industry experience, including leadership in portfolio strategy and product management. He will lead BLG’s continued focus on premium real estate, hospitality, and excess property insurance.
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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