News
Zurich shares firsthand insights in 'Data center risks right now'
As data center development tests risk management like never before, Zurich North America today released Data center risks right now: 6 critical questions to enable a resilient buildout.
The new report brings together field‑tested insights and experience-based data from Zurich risk engineers, underwriters, claims professionals and business leaders engaged in insuring some of the largest and most complex data center projects ever seen.
The report examines six pivotal questions shaping resilience across construction and early operations, grounded in real‑time risks Zurich teams are seeing on sites, in coverage discussions and in claims data. "Data center risks right now" focuses on the U.S., where data center construction has accelerated the fastest, while acknowledging similar challenges around the world.
"As AI adoption drives demand for data centers, project values, power demand and execution complexity are all intensifying at once," said Kelly Kinzer, President and Global Head of Construction and Surety for Zurich. "The ability to navigate the challenges and build in resilience is critical not just in the U.S., which hosts the largest share of global data center capacity. Many countries see data center expansion within their borders as critical to economic competitiveness and digital sovereignty."
WTW organic revenue growth slows; pulls back on outlook - Business Insurance
Willis Towers Watson cut its full-year organic revenue growth outlook for its corporate risk and broking business to mid-single digits after a slower start to the year, as Middle East disruption delayed client activity and new business fell short, executives said Thursday.
Willis reported first-quarter revenue of $2.41 billion, up 8% overall from the same period last year, with organic revenue growth of 3%, down from 5%.
Net income rose 27% to $303 million, up from $239 million in the prior-year period.
“Revenue came in at the low end of our plan as we saw the effects of a more challenging and volatile global market environment during the quarter,” CEO Carl Hess said during the brokerage’s first-quarter earnings call with analysts.
Investments in artificial intelligence are gaining scale and driving growth and efficiencies across the business, Mr. Hess said. “Clients are not choosing between human expertise or technology. They expect both,” he said.
AI is central to WTW’s strategy and will become a key driver of value for both clients and the business, Chief AI Officer Spike Lipkin said on the call.
Allstate extends Nationwide occurrence cat reinsurance and adjusts aggregate protection - Reinsurance News
US primary insurer Allstate extended the top of its Nationwide Per Occurrence catastrophe reinsurance tower by $2 billion to provide coverage for events up to $11.5 billion of loss at its April renewal, and also made some changes to its aggregate protection.
For Allstate’s main 2026-2027 Nationwide Per Occurrence tower, the retention is unchanged from the prior year at $1 billion, but above this sits contracts between $1 billion and $4.75 billion, which provides multi-year coverage placed with traditional reinsurers, with one contract providing $245 million of placed limits on a by peril basis (hurricane, fire, all other). Last year, this section of the tower extended to just $4.25 billion
Above this, for 2026-2027, Allstate has $2 billion of limit up to $6.75 billion, which includes $1.05 billion of coverage placed with one automatic reinstatement of limits, with additional premium due, and $950 million of catastrophe bond coverage not eligible for reinstatement of limits. Last year, this section of the tower also provided $2 billion of limit but up to $6.25 billion, and included $1.63 billion of coverage placed with traditional reinsurers, and $350 million of catastrophe bond covera
Financial Results
Arthur J. Gallagher & Co. Announces First Quarter 2026 Financial Results
Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended March 31, 2026.
Summary of Financial Results - First Quarter
First quarter 2025 reported and adjusted amounts for the Brokerage Segment include approximately $143 million of incremental interest income, or approximately 41 cents after-tax, earned on the cash proceeds held to fund the AssuredPartners acquisition.
For first quarter 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $431 million, $15 million and $30 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $111 million, $4 million and ($20) million, respectively, relating to these adjustments. A detailed reconciliation is shown on pages 16 and 17.
"We had a terrific first quarter!" said J. Patrick Gallagher, Jr., Chairman and CEO. "For our combined brokerage and risk management segments, our two-pronged revenue growth strategy – growing both organically and through acquisitions – delivered revenue growth of 28% in the quarter. Our organic growth of 5% reflected strong client retention, disciplined execution, and the benefit of our diversified platform. Net earnings increased 12%, and adjusted EBITDAC grew 18%, marking our 24th consecutive quarter of double-digit adjusted EBITDAC growth.
FM Announces Record US$1.5 Billion Membership Credit
Commercial property insurer FM today announced its largest-ever membership credit of approximately US$1.5 billion for eligible mutual policyholders, highlighting an extraordinary year of partnership, protection and loss prevention.
This year's record membership credit was driven by FM's clients, whose commitment to risk mitigation and loss prevention drove historically low losses. In 2025, FM partnered with clients to complete more than 48,000 loss prevention recommendations, reducing loss exposure associated with property risk by an estimated US$1 trillion.
In recognition of these achievements, FM is providing an additional one-time 5% enhancement to the membership credit for all eligible clients. Including FM's recent enhanced resilience credit, 2026 declared FM policyholder credits total US$2.3 billion, which represents more than 100% of FM's 2025 underwriting profit.
"This year's FM membership credit is a testament to the strong partnerships that we forge with our clients and their steadfast commitment to building resilience and preventing losses before they happen," said Malcolm Roberts, chairman and chief executive officer of FM. "In today's rapidly changing and unpredictable environment, resilience has never been more relevant. Thanks to the power of our mutual business model and our shared commitment to risk mitigation, we can share our success with our clients. By working together, we are creating a more resilient future."
State News
TRIPLE-I WARNS ILLINOIS INSURANCE BILL WOULD RAISE COSTS, REDUCE CONSUMER CHOICE -
The following information was released by the Insurance Information Institute:
A new Issues Brief from the Insurance Information Institute (Triple-I) found that legislation moving through the Illinois General Assembly would likely make property/casualty insurance less affordable and less available for consumers by constraining insurers' ability to price risk accurately, without addressing the underlying causes of rising premiums.
The report examines Senate Bill 1486, which would impose additional regulatory requirements on insurers writing auto and homeowners coverage in Illinois. While intended to protect consumers, the proposal focuses on insurance pricing, rather than the cost drivers that are pushing premiums higher nationwide, including severe weather, higher repair and replacement costs, demographic shifts, fraud, and excessive litigation. Already this year, Illinois has experienced more tornadoes than any other state nearly 100.
"Lawmakers want to help consumers, but proposals like Senate Bill 1486 risk doing the opposite," said Sean Kevelighan, CEO, Triple-I. "Rising insurance premiums are driven by real-world costs such as severe weather, higher repair expenses and legal system abuse. When legislation focuses only on limiting pricing, it can reduce competition and leave consumers with fewer choices."
The Issues Brief noted Illinois insurance remains more affordable than the national average, based on the Insurance Research Council's Affordability Index, which measures insurance expenditures relative to median household income. Illinois homeowners' and personal auto insurance affordability compares favorably with the U.S. average.
Triple-I warned limiting insurers' ability to price risk accurately can erode policyholder surplus, the financial cushion insurers are required to maintain to pay claims. As surplus declines, insurers are forced to raise rates further or reduce their appetite for risk, resulting in less competition and fewer coverage options for consumers.
New York bill targets auto insurers with sweeping transparency mandate | Insurance Business
The proposed law puts CEO accountability front and center – with penalties of up to $50K per violation
New York lawmakers want to force every motor vehicle insurer in the state to show their financial cards to the public.
Assembly Bill A. 11155, introduced on April 28, 2026, by Assembly Member Nily Rozic and referred to the Assembly Committee on Insurance, proposes to amend New York's insurance law by adding a new Section 346. The legislation, titled the "Automobile Insurance Sunshine Act," would require all insurers authorized to issue motor vehicle policies in New York to file detailed annual financial statements and closed claim data with the Superintendent of Financial Services.
AI in Insurance
Grant Thornton: Insurers See AI Gains but Face Governance Gap
Insurers are seeing gains from artificial intelligence, but many are also exposing themselves to unnecessary risks, according to a new Grant Thornton report.
The independent CPA firm’s 2026 AI Impact Survey Report found that 44% of insurance executives say governance or compliance challenges have contributed to AI project failure or underperformance. Only 24% are very confident they could pass an independent AI governance review in 90 days.
“Without clear policies and tested controls, insurers are leaving their organizations open to risk with regulators and customers, fueling financial pressure that could ultimately erode product profitability,” Grant Thornton said. “Tested and provable governance gives insurers confidence to deploy AI across higher-value workflows, leading to improved ROI and revenue growth.”
Why AI isn't moving the needle in insurance (yet)
If artificial intelligence is supposed to transform insurance, why isn't it showing up where it matters most?
That question sits at the center of a new white paper, Ultimate AI Strategy for Insurance, by Artem Gonchakov, CEO of Simplifai. The paradox is striking: 83% of insurers are spending at least $5 million annually on AI, and 14% are investing more than $50 million. Yet fewer than 15% report any material impact on their combined ratio.
According to Gonchakov, the problem isn't technological. "Insurance doesn't have an AI problem," he writes. "It has a strategy execution problem."
In other words, insurers are not failing to adopt AI. They are failing to apply it in ways that meaningfully improve financial performance.
Commentary/Opinion
Balancing Authenticity and Compliance in Creator-Led Insurance Marketing
Most property and casualty insurers do not question whether creator-led marketing works. The issue is control.
The format introduces something traditional advertising lacks: lived experience. A driver describing a breakdown or a homeowner talking through a claim carries more weight than standard messaging. But insurance marketing cannot rely on implication alone. Statements about price, coverage, or outcomes sit inside a regulatory framework that becomes very real when challenged. That is where most creator programs run into trouble.
Problems usually start with language.FULL ARTICLE
Research
ACORD 2026 Insurance Digital Maturity Study: 7% of World's Largest Insurers Outpace Average Insurer Profitability by Leveraging End-to-End Digital Capabilities
ACORD, the standards-setting body for the global insurance industry, today released the 2026 edition of its annual ACORD Insurance Digital Maturity Study. The report analyzed 210 of the world's largest insurance carriers across all major lines of business, including property and casualty, life, and reinsurance. Of the organizations examined, only seven percent qualify as top Digital Competitors.
The study also found that while nearly one third of insurers have fully digitized across the value chain, fewer than one in ten have achieved the top tier of digital maturity. The bulk of carriers examined remain somewhere in the middle of their digitalization journey. The gap between leaders and laggards continues to widen, not based on the amount that insurers invest in technology, but because of how effectively they convert digital capability into execution and outcomes.
"For many insurers, core back‑office operations remain largely manual and siloed, with digital efforts treated as a collection of discrete projects rather than a coordinated, enterprise‑wide transformation program," said Dave Sterner, Senior Vice President, Research & Development at ACORD. "Insurers that treat digitization as an integrated business system spanning technology, data, operating models, culture, and governance are best positioned to outperform in an increasingly complex and competitive market."
Podcast Sponsor
Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts
The ‘Connected’ Podcast by Alan Demers and Stephen Applebaum, is a condensed audio version of the day's ‘Connected' newsletter, a daily scan of all the happenings in the world of Insurance & InsurTech News.
Pulse Podcasts: Introduce a new way for your audience to hear your voice! We are a podcast creation service that helps businesses turn their written content, like blog posts and news articles, into beautiful podcasts. Our platform writes the script, records the voices, and mixes the audio to create engaging content for your audience. It's affordable and has super-fast turnaround!
LISTEN AND SUBSCRIBE BELOW