Financial Results
US insurers forecast to sustain underwriting gains in 2026 despite economic pressures: Triple-I/Milliman
The US property and casualty (P&C) insurance sector is expected to maintain positive underwriting results in 2026, despite continued pressures from claims costs, natural catastrophes and economic uncertainty.
This is according to the Insurance Information Institute (Triple-I), a US organisation specialising in insurance research and economic analysis, and Milliman, an actuarial and consulting firm, in their latest members-only webinar, Insurance Economics and Underwriting Projections: A Forward View.
Underlying P&C growth, a key driver of new business premium volumes, is expected to exceed gross domestic product (GDP) growth in 2026 and 2028, before falling below the wider economic growth rate in 2027.
Triple-I forecasts that P&C replacement costs will rise more slowly than overall inflation in 2027 before increasing at a faster rate in 2028.
Commercial Property Rates Fall But Casualty Remains Under Pressure - IA Magazine
As competition among insurers intensified, large and complex property rates fell an average of 14.5% in the second quarter of 2026.
Earlier this month, WTW released the fall 2026 edition of its “Insurance Marketplace Realities” report, examining rate predictions and market conditions across more than 30 lines of commercial insurance.
As competition among insurers intensified, large and complex property rates fell an average of 14.5% in the second quarter of 2026, compared with 8.4% a year earlier. MORE
Berkley’s Q3 profits fall on investment losses
W.R. Berkley’s profits fell 12.7% to $446 million in the third quarter, largely due to investment losses.
Net premiums written increased 1.3% to $3.27 billion, the Greenwich, Connecticut-based insurer said Monday. The combined ratio was 90.8%, a slight improvement from 90.9% a year earlier.
On a call with analysts, Chairman and CEO W. Robert Berkley, Jr., noted an 18.8% operating return on equity, while chief financial officer Richard M. Baio pointed to underwriting profits of $296 million for the quarter.
Net investment results, including unrealized gains and losses, swung to a $18 million loss from a $79 million gain the year earlier.
News
Auto finance fraud reaches $10.4 billion as criminals shift from theft: NICB
Organized criminal networks are moving away from stealing cars towards defrauding auto lenders, according to a new report from the National Insurance Crime Bureau (NICB).
It estimated fraud exposure in US auto lending at $10.4 billion and expects losses to rise further in 2026.
“Vehicle finance fraud has evolved from isolated credit misrepresentations into an organized, digital criminal industry that touches dealerships, lenders and insurers,” said Timothy Slater, NICB’s chief operating officer.
The shift comes as traditional vehicle theft falls sharply. US vehicle thefts dropped 23% in 2025 to 659,880, the lowest level in decades, following a 17% decline in 2024, according to NICB data. NICB has since reported a further 21% decline in the first half of 2026.
Research
State Farm® and MIT AgeLab Collaborate to Study What's Driving Distraction Behind the Wheel
As vehicles become more connected and technology-enabled, the challenge of distracted driving is becoming more complex across the country.
The question is no longer simply what distracts drivers, but understanding why people make certain choices behind the wheel and how technology may influence those decisions.
State Farm® and the MIT AgeLab are exploring those questions through a research initiative examining driver attention, distraction, and the behaviors that influence decision-making behind the wheel. Researchers have coined the term "drivefulness" to describe a state in which a driver is safe, aware, appropriately engaged, and ready to respond to the road, while being supported in having the best possible driving experience for them.
Distracted driving carries significant human and economic consequences. According to U.S. Department of Transportation research, distraction was involved in 29% of motor vehicle crashes studied, contributing to more than 10,000 deaths, 1.3 million injuries, and an estimated $98.2 billion in economic costs. PRESS RELEASE
Legal System Abuse/Social Inflation
Best’s Special Report: Social Inflation Adds Pressure to US Property/Casualty Liability Results
U.S. commercial auto liability insurance coverage has continued to bear the brunt of rising litigation costs that have outpaced economic inflation and fueled uncertainty in reserve estimates, part of the ongoing social inflation trend that is affecting other lines of property/casualty coverage as well, according to the new AM Bestreport.
While the U.S. court system plays an integral role in resolving insurance claim disputes, the exploitation of procedural rules and the utilization of sophisticated litigation strategies, along with the evolution of negative sentiment against corporations, have proven to be a troublesome issue for the insurance industry.
Some of these tactics employed by plaintiff attorneys to initiate more lawsuits or increase litigation expenses can drive up total claim costs and lead to excessive verdicts. “These factors can subsequently lead to higher rates paid for insurance coverage,” said Christopher Graham, senior industry analyst, AM Best.
“Legal system abuse comes in several forms and can have a severe impact on insurers’ results, particularly in liability lines of coverage,” Graham said.
Private Equity Legal Alliance Releases Insurance Defense White Paper: Defending the Balance Sheet
The Private Equity Legal Alliance (PELA) today announced the release of its fourth white paper, Defending the Balance Sheet: Insurance Defense as Institutional Litigation Infrastructure, examining the potential for private equity and institutional capital to reshape the highly fragmented insurance defense sector.
The publication marks a significant expansion of PELA's ongoing examination of private capital and legal services. While its first three white papers focused primarily on personal injury law firms, legal management services organizations (MSOs) and the development of scalable platforms, the new report turns to insurance defense, a distinct market characterized by recurring institutional demand, longstanding carrier relationships, sophisticated billing requirements and a fragmented network of law firms. CONTINUES HERE
Climate/Resilience/Sustainability
KCC Says Isaias Insured Losses to Be $3 Billion; AM Best Calls Storm an Earnings Event
Catastrophe risk management firm Karen Clark & Co. (KCC) said privately insured losses from wind and storm surge during Hurricane Isaias will be about $3 billion, making the storm one of the most manageable for insurers in recent years. ARTICLE
AI in Insurance
Why AI makes insurance technology harder to own
Generative AI is making it faster and cheaper for insurers to develop their own technology, but Earnix warns that lower development barriers do not remove the long-term costs of governance, maintenance and regulatory accountability.
The InsurTech firm argues that insurers reassessing their technology strategies risk focusing too heavily on how quickly they can create a working solution, rather than what it takes to operate it reliably at scale.
AI can generate code, accelerate model development and turn prototypes into applications in a fraction of the time, prompting insurers to reconsider whether buying established software still makes sense.
Claims
Insuranceopedia Launches Appeals Assistant as Survey Finds 60% of Homeowners Don't Know They Can Appeal a Claim Closed With No Payment
Insuranceopedia today launched its Appeals Assistant, which helps U.S. homeowners challenge a home insurance claim that was underpaid or closed with no payment for a flat $99, instead of absorbing the loss or giving a public adjuster a share of the payout. The launch comes as a new Insuranceopedia survey of 700 homeowners finds nearly 60% don't know they can ask their insurer to reconsider or appeal a claim closed with no payment.
"Asking your insurer to reconsider is a normal part of the claims process," said Bob Phillips, a former licensed insurance agent with Insuranceopedia. "Go back with specifics: your policy wording, photos and a contractor's estimate."
InsurTech/M&A/Finance💰/Collaboration
DXC in advanced talks to sell insurance software unit for $2.4 billion, sources say
According to Google Gemini.....
DXC Technology (often mistyped as DXS) is in advanced talks to sell its insurance software and services division to the private investment firm Eldridge Industries for approximately $2.4 billion.
The critical details of this developing transaction include:
- The Buyer: Eldridge Industries plans to merge DXC's insurance portfolio with its own insurance technology platform, Zinnia, creating a massive, scaled provider of administration and software for life insurance and annuity providers.
- The Motivation: DXC is looking to exit the sector to streamline its core IT operations after several years of declining revenue.
- The Portfolio Affected: The sale includes DXC's global insurance division, which handles policy administration systems and business process services spanning the life, wealth, property, and casualty markets.
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