Weekly Articles
Commercial Lines
US Commercial Insurance Rates Rise 5.6% in Q4 - Risk & Insurance : Risk & Insurance
In the fourth quarter of 2024, U.S. commercial insurance prices increased by 5.6% compared to the same period in 2023, according to WTW's Commercial Lines Insurance Pricing Survey (CLIPS). This overall rise reflects a nuanced market: while commercial auto liability experienced record price increases, other segments like workers’ compensation, directors and officers liability, and cyber insurance showed signs of moderation.
Insurers Have Paid $12B in Claims for LA Wildfires, Report Shows - Claims Journal
Insurance companies have paid out over $12 billion for losses from the January 2025 Los Angeles wildfires, nearly doubling the $6.9 billion reported the previous month, with 37,749 claims filed. Major insurers, including Lloyd’s, Munich Re, Travelers, Allstate, State Farm, and Chubb, have each reported significant losses, with some exceeding $1 billion in expected payouts.
Higher rates not enough to solve wildfire and weather crisis - Hippo | Insurance Business America
Hippo Insurance reported $42 million in net pretax losses from the recent Los Angeles wildfires, emphasizing that higher insurance rates alone cannot address the growing risks of wildfires and extreme weather. CEO Rick McCathron stressed the need for insurers to collaborate with home builders on resilience measures to create sustainable solutions for managing catastrophe risks.
D&O Insurance Premiums Fall Despite Growing Risks - Risk & Insurance : Risk & Insurance
Despite increasing risks from economic uncertainty, artificial intelligence challenges, and an evolving litigation landscape, directors and officers (D&O) liability insurance premiums have continued to decline from their 2020-2021 peaks. This trend is attributed to improved underwriting performance, tighter risk selection, and new market entrants attracted by previously higher rates, leading to concerns about the sustainability of recent profitability gains as the premium base diminishes amid expanding risks.
Lloyd's pegs LA wildfire loss at $2.3bn as FY'24 GWP rises 6.5% - Reinsurance News
Lloyd's of London anticipates net losses of $2.3 billion from the January 2025 Los Angeles wildfires, which resulted in over two dozen fatalities and damaged or destroyed more than 16,000 structures. Despite these significant claims, Lloyd's reported a 6.5% increase in gross written premiums for 2024, reaching £55.5 billion, with a combined ratio of 86.9%, indicating continued profitability.
A California City Is Pioneering Urban-Scale Insurance for Climate Disasters - Claims Journal
Fremont, CA, became the first U.S. city to purchase parametric flood insurance, offering automatic payouts when flooding meets predefined thresholds. Unlike traditional insurance, this innovative approach provides faster disaster relief. With insurers exiting risky markets, experts see growing demand for similar solutions to protect cities from climate-driven catastrophes.
How Tariffs Affect P&C Insurance Prospects – Triple-I-Blog
Tariffs and trade uncertainties are impacting property and casualty insurers, particularly in homeowners and auto lines, as higher costs for materials and vehicle parts drive up claims expenses and policyholder premiums. According to Triple-I’s Chief Economist Michel Léonard, ongoing protectionist policies could lead to slower industry growth and elevated replacement costs for at least the next 24 to 36 months.
Bayer tells US it could halt Roundup weedkiller sales over legal risks | Reuters
Bayer has informed U.S. lawmakers that it may cease sales of its glyphosate-based Roundup weedkiller unless stronger legal protections against product liability litigation are established. The company has already paid approximately $10 billion to settle claims alleging that Roundup causes cancer, with about 67,000 additional cases pending. Bayer argues that since the U.S. Environmental Protection Agency and other global regulators have deemed the product safe, plaintiffs should not be able to sue under state laws. Without regulatory clarity, Bayer is considering exiting the U.S. market for this product.
Diversification, Risk Modeling Top of Mind for Carriers as Cyber Market Softens - Carrier Management
As cyber insurance rates stabilize, insurers are focusing on diversification strategies, including technology dependency assessments and expanding coverage to small and medium-sized enterprises (SMEs), according to insights from the PLUS Cyber Symposium. Industry experts also highlighted the evolution of cyber risk modeling, improved standardization in policy language, and ongoing challenges in data collection and accumulation risk, underscoring the need for continued refinement in understanding systemic cyber threats.
A True Alternative to Opioids for Workers’ Comp? Questions Remain - Claims Journal
The recent FDA approval of suzetrigine (brand name Journavx), the first new class of pain medication in over 20 years, offers a promising non-addictive alternative to opioids for acute pain management in workers' compensation cases. While its higher cost compared to generic analgesics may raise concerns, its potential to reduce opioid dependency could lead to long-term benefits.
Emerging Risks
In 2024, ransomware attacks reached unprecedented levels, with 5,243 victims posted on leak sites—a 15% increase from 2023—resulting in the exposure of over 195 million records. Despite this surge, total payments to ransomware groups declined by 35% year-over-year to $813 million, indicating that organizations are increasingly refusing to meet attackers' demands. This trend suggests a shift in both attack methods and organizational responses to ransomware threats.
Report Mulls How Most Ransomware Incidents Start - Claims Journal
Coalition’s Cyber Threat Index 2025 reveals that 58% of ransomware claims in 2024 stemmed from compromised perimeter security appliances, while stolen credentials (47%) and software exploits (29%) were top attack vectors. Exposed login panels and remote management tools remain major risks, highlighting the need for continuous security monitoring.
US Cyber Claims Surge While Global Rates Decline: Chubb - Triple-I Blog
Chubb's analysis of its cyber claims data through December 2024 reveals a concerning increase in both the frequency and severity of cyber insurance claims among U.S. businesses, particularly mid-sized and large companies. In contrast, international markets have experienced declines in these metrics, attributed to heightened cyber risk awareness, improved incident response protocols, and stricter regulatory compliance.
The world's polluted air – is it a risk for insurers? | Insurance Business America
The IQAir World Air Quality Report shows that over 90% of surveyed countries exceed WHO air pollution guidelines, posing growing risks for insurers, particularly in health, life, and workers' compensation lines. With air pollution costing the U.S. economy $790 billion annually, insurers may need to reassess risk models as claims related to respiratory and chronic diseases increase
Litigation & Mass Torts
California Insurance Commissioner Ricardo Lara has provisionally approved State Farm’s 22% homeowners insurance rate hike, pending justification in an April 8 public hearing. Lara also urged State Farm to halt non-renewals and seek a $500M capital infusion. Consumer Watchdog opposes the hike, citing a lack of financial justification.
2025 Commercial Litigation Outlook – Seyfarth
This year’s Commercial Litigation Outlook explores legal shifts under the second Trump administration, AI’s evolving role, and key industry challenges. Topics include rising business bankruptcies, ESG litigation trends, crypto enforcement changes, state-led data protection laws, and growing risks in healthcare and construction litigation.
Supreme Court Nixes Challenge to State Climate Suits Against Oil Firms - Insurance Journal
The U.S. Supreme Court declined to hear a case brought by 19 Republican-led states aiming to block climate change lawsuits filed by five Democratic-led states against major oil companies, allowing these state-level lawsuits to proceed.
Wells Fargo Sues JPMorgan Over Troubled $481M Real Estate Loan - Claims Journal
Wells Fargo has filed a lawsuit against JPMorgan Chase to recover investor losses from a $481 million commercial real estate loan associated with the Chetrit Group's 2019 acquisition of 43 multifamily properties across 10 U.S. states. The suit alleges that both JPMorgan and Chetrit were aware that the seller had overstated the properties' net operating income by 25% prior to the loan's issuance, yet proceeded with the transaction, leading to a 2022 default and significant investor losses.
Bayer Threatens to Stop Roundup Weedkiller Sales in US Over Litigation Costs - Claims Journal
Bayer has warned U.S. lawmakers that it may stop selling Roundup weedkiller in the U.S. unless stronger legal protections are established, as it faces ongoing litigation over claims that glyphosate, its active ingredient, causes cancer. Despite regulatory agencies deeming glyphosate safe, Bayer has already paid $10 billion in settlements and is grappling with 67,000 additional lawsuits.
New York AG Sues National General and Allstate Over Data Breach - Claims Journal
New York Attorney General Letitia James has filed a lawsuit against National General and its parent company, Allstate Insurance Co., for failing to protect the personal information of over 165,000 New Yorkers during data breaches in 2020 and 2021. The breaches exposed driver's license numbers due to inadequate cybersecurity measures, and the companies are accused of failing to notify affected consumers and implement necessary safeguards.
Insurance Market
S&P Global Market Intelligence projects that the U.S. property/casualty insurance industry will surpass $100 billion in net income for 2024, driven by improved personal lines underwriting and higher investment income from rising interest rates. With a combined ratio improving to 96.6 from 101.8 in 2023, Berkshire Hathaway and Progressive led the industry’s underwriting profits, while State Farm continued to report underwriting losses despite significant improvements.
Gallagher's acquisition of AssuredPartners pushed back amid regulatory review - Reinsurance News
Arthur J. Gallagher & Co.'s $13.45 billion acquisition of AssuredPartners has been delayed due to a second request from the Federal Trade Commission (FTC) as part of its antitrust review. Originally expected in Q1 2025, the deal is now anticipated to close in the second half of the year, pending regulatory approval.
Heritage Reports Fourth Quarter 2024 Results
Heritage Insurance (NYSE: HRTG) reported Q4 2024 net income of $20.3M ($0.66 per share), down from $30.9M due to Hurricane Milton losses. Gross premiums earned rose 6.1%, while the combined ratio increased to 89.7%. CEO Ernie Garateix highlighted strategic profitability initiatives, underwriting discipline, and expansion into profitable geographies for 2025.
Tech Sector Sees Softer Insurance Market but Less Comprehensive Policies- Insurance Journal
In 2024, insurance premiums for technology companies either decreased or remained stable across various lines, according to Embroker's 2024 Business Insurance Index. However, this affordability came at a cost, as insurers introduced new exclusions and coverage limitations, resulting in less comprehensive policies that could leave businesses vulnerable to coverage gaps.
Upgrades Up, Downgrades Down: AM Best Reviews 2024 Rating Actions – Carrier Management
AM Best recorded 34 upgrades for U.S. commercial insurers in 2024, a 60% increase from 2023, while personal lines saw 31 downgrades due to catastrophe risk and rising loss costs. Casualty Underwriters’ rating fell to “D” (poor), while Wolverine Mutual’s outlook improved amid a demutualization deal.
Verisk: Claims Volume Rose 36% in 2024, Largely on Catastrophe Claims- Claims Journal
In 2024, property claims volume increased by 36%, primarily due to a 113% surge in catastrophe-related claims, notably from a severe Atlantic hurricane season. Hurricane-related claims constituted 9% of the total volume, marking a 1,100% rise from Q4 2023, with flood and wind claims also seeing 200% increases.
Global Instability Leads to 16-Year Low for Insurance Carrier M&A Deals - Insurance Journal
Insurance M&A fell to a 16-year low in 2024 with only 204 deals, driven by market softening, regulatory challenges, and geopolitical instability, according to Clyde & Co. However, deal value increased due to major transactions (Deloitte). A U.S.-led rebound is expected in 2025, fueled by deregulation, investor confidence, and rising Insurtech acquisitions.
Reinsurance Market
ILS and reinsurance increasingly working together: Wong-Fupuy, AM Best - Artemis.bm
In a recent webinar, Carlos Wong-Fupuy, Senior Director at AM Best, highlighted that third-party capital in the reinsurance market reached record levels in 2024. He emphasized the increasing collaboration between Insurance-Linked Securities (ILS) and traditional reinsurance, noting that this synergy is enhancing the industry's capacity to manage complex risks.
Canopius reports 90.2% CoR as premiums rise to $3.5bn in 2024 - Reinsurance News
Canopius Group reported a 26% increase in Insurance Contract Written Premiums, reaching $3.53 billion in 2024, up from $2.80 billion in 2023. The company's profit after tax rose by 10% to $401.3 million, with a Return on Tangible Equity of 27.7%. The Group's net combined ratio (undiscounted) was 90.2%, reflecting strong underwriting performance.
Florida Citizens targets $2.94bn of new reinsurance and cat bonds for 2025 - Artemis.bm
Florida's Citizens Property Insurance Corporation plans to secure approximately $2.94 billion in new risk transfer arrangements for 2025, aiming for a total of $4.54 billion in reinsurance coverage. This strategy seeks to enhance financial resilience against potential natural disasters, especially in light of recent events like Hurricane Milton, which caused significant insured losses and further strained the state's homeowners insurance market.
Gallagher Re’s Cyber Risk Adjusted Rating Index up 100% since 2020 - Artemis.bm
Gallagher Re's Cyber Risk Adjusted Rating (RAR) Index has doubled since 2020, reflecting a 62% increase from 2020 to 2021 and a 63% rise from 2021 to 2022. This significant growth underscores the escalating cyber risk landscape and the corresponding adjustments in insurance ratings.
Greenlight Re Announces Fourth Quarter And Year-End 2024 Financial Results
Greenlight Capital Re (NASDAQ: GLRE) reported a $27.4M net loss in Q4 2024 due to aviation and catastrophe losses, despite a 28% increase in gross premiums written. For 2024, net income was $42.8M, down from $86.8M in 2023. The company restructured into Open Market & Innovations segments for better alignment with its strategy. CEO Greg Richardson emphasized organizational improvements and a focus on delivering shareholder value in 2025.
Swiss Re remains resilient amid climate and economic challenges - Reinsurance News
In 2024, Swiss Re demonstrated resilience amid significant climate and economic challenges, achieving net income growth despite natural catastrophe losses surpassing $100 billion. The reinsurer emphasized the importance of investing in mitigation and adaptation measures to address the escalating frequency and severity of weather-related losses linked to climate change.
Hannover Re's board member, Sven Althoff, anticipates that reinsurance pricing will stabilize at elevated levels in upcoming renewal periods. This projection aligns with recent market observations, where increased reinsurance capital has led to rate reductions for loss-free accounts, while regions with significant losses continue to experience rate hikes.
US reinsurance market faces midyear pressure – Moody's – Insurance Business Mag
Reinsurance pricing moderated at the January 2025 renewals, with property catastrophe rates decreasing in loss-free regions, while US accounts impacted by Hurricanes Helene, Milton, and LA wildfires may see stabilization mid-year. Casualty pricing remained mixed, and European reinsurers reported premium growth, signaling continued market attractiveness.
Technology and Innovation
Aioi R&D Lab-Oxford and Natcap look to transform biodiversity risk management - Reinsurance News
Aioi R&D Lab-Oxford and Natural Capital Research (Natcap) have partnered to develop an AI-driven solution that helps businesses assess and mitigate biodiversity risks, aligning with evolving regulatory frameworks like TNFD and CSRD. Their collaboration includes the creation of a Nature Risk Library and geospatial risk assessment tools, enabling companies to integrate nature-related financial risks into decision-making and drive conservation-focused capital allocation.
AI adoption in insurance accelerates, but ROI pressures loom: KPMG | Insurance Business America
KPMG's study reveals that insurers are rapidly adopting AI, with 66% expecting a high return on investment, yet facing pressure to demonstrate immediate ROI and address trust concerns. AI is transforming underwriting, claims automation, and longevity modeling, while KPMG outlines three phases of AI adoption—enable, embed, and evolve—to help insurers integrate AI strategically and responsibly.
People Moves
Aon Appoints New CEO to Lead Middle Market Practice in North America
Aon plc (NYSE: AON) announced Denise Perlman will join as CEO of Middle Market, North America, effective April 1, 2025. She will lead risk and human capital solutions for midsize businesses. Perlman, formerly with Marsh McLennan Agency, brings data-driven expertise to Aon’s expanding middle-market strategy, including its NFP acquisition.
Aon Hires New Leadership to Accelerate Construction and Surety Practice in North America
Aon plc (NYSE: AON) announced Rob McDonough as CEO of Construction, Infrastructure & Surety, North America, and Brian Hodges as Head of Surety, North America. Both join from Marsh McLennan to strengthen Aon’s risk solutions for the construction sector. Their leadership will enhance data-driven risk management and client-focused solutions.
Specialty insurer Beazley has appointed Lindsay Shipper as head of commercial property for North America, effective April 1. With nearly two decades of experience in the property market, Shipper joins from Marsh, where she held several senior positions, most recently as managing director and Southeast Zone Property Leader.
Davies names CEO of North American subsidiary | Insurance Business America
Davies has appointed Dhara Patel as CEO of Davies North America, succeeding Matt Button, who was promoted to group deputy CEO earlier this year. Patel, with 25 years of experience in insurance claims and professional services, will oversee operations and sales across the U.S. and Canada, managing nearly $500 million in annual revenue.
HP Re appoints Matt Walters as Chief Operating Officer - Reinsurance News
HP Reinsurance SPC Ltd. (HP Re), a Cayman Islands-based reinsurer established by Hippo Holdings Inc., has appointed Matt Walters as Chief Operating Officer. Walters brings extensive experience from the investment banking sector, having previously served as Group Head of Syndicated and Acquisition Financing.
PartnerRe appoints Piergiorgio D’Ignazio as Global Product Leader, Credit & Political Risk – Reinsurance News
PartnerRe has named Piergiorgio D’Ignazio as Global Product Leader, Credit and Political Risk. Formerly Credit Lines CUO at Zurich Insurance, he brings 20+ years of industry experience, including leadership roles at SACE. Jeff Ryan, Head of Financial Risks, highlighted D’Ignazio’s expertise as a key asset to clients and the firm.
Tokio Marine HCC President Schell to Retire After 50 Years in Insurance - Carrier Management
Tokio Marine HCC announced the retirement of President Mike Schell at the end of March, following a 23-year tenure with the company and over 50 years in the insurance industry. Barry Cook, CEO of Tokio Marine HCC International, will take on the newly created role of deputy CEO, effective April 1, as the company continues its leadership transition.
Westfield Specialty International has appointed Jeremy Shallow as Chief Underwriting Officer (CUO) and Active Underwriter for Syndicate 1200, recognizing his extensive experience in underwriting and risk management. Previously serving as Deputy Active Underwriter, Shallow has also held leadership roles at Aspen and started his career in banking at WestLB.
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