Research
Underinsurance threatens business profitability—HUB
Are businesses prepared for inflation, cyber threats, and climate risks?
Hub International Limited’s 2025 North American Outlook Report reveals a significant gap in business preparedness for emerging threats, with 73% of respondents acknowledging they are underinsured against risks that could impact profitability.
The report, based on the company’s Executive Survey, underscores the challenges organizations face in managing risks tied to inflation, climate change, cyber threats, artificial intelligence, and geopolitical uncertainty.
Marc Cohen, president and CEO of HUB, stated that the pace at which risks are accelerating demands a more proactive approach. While business leaders are increasingly aware of these risks, many struggle to implement effective strategies.
“The HUB survey results show that leaders are thinking about these risks but require assistance from the right partner. Leveraging insurance to protect profitability, investing in data analytics to improve workforce vitality, and building a comprehensive ERM (enterprise risk management) plan to be resilient against future risks, are the solutions and strategies executives need to consider,” said Cohen.
Homes in these cities hit a trifecta of risk
Weather has become a major consideration for those in the United States when deciding where to settle down.
According to a Redfin report, after seeing the damage caused by the one-two punch of Hurricanes Helene and Milton earlier this fall nearly, a third of residents between ages 18 to 34 and about 15% of those aged 35 and older said they are reconsidering where they may move in the future.
As of November 1, the NOAA reports there have been 24 confirmed climate-related disasters in 2024, including 17 severe storm events, 4 tropical cyclones, 1 wildfire and 2 winter storms. With a month to go in this year, this already surpasses the average of 20.4 events a year recorded from 2019 to 2023, though it is still short of the 28 confirmed billion-dollar events in 2023, which set a new record.
According to a recent report from CoreLogic, there are around 33,000 households in the U.S. that are up against a triple-threat of risk; meaning they are at a year-round extreme risk from three different natural disasters.
In their study, they identified single-family homes in the U.S. that were exposed to a combination of the following perils: hurricane wind, wildfire, inland flood, severe convective storms and severe winter storms. They found homes across 20 metropolitan areas with an extreme level of risk for three of these perils.
News
Social Media Respond Health Insurance CEO Murder With Little Sympathy
Americans on social media showed virtually no sympathy for the apparently targeted killing of UnitedHealthcare's CEO by mystery gunman in New York.
Across social media, the response to the killing of UnitedHealthcare's CEO was contemptuous of the industry he represented
The fatal shooting of UnitedHealthcare CEO Brian Thompson outside a midtown Manhattan hotel on Wednesday morning was a shock to the city and the nation. But as police hunted for the missing gunman in what they called a “premeditated, preplanned, targeted attack,” social media erupted with contempt for the health insurance industry he represented — and his company in particular.
“Saw mainstream news coverage about the killing of the CEO of United Healthcare on TikTok and I think political and industry leaders might want to read the comments and think hard about them,” wrote political activist Tobita Chow in a post on X, formerly Twitter. In screenshots he shared, TikTok users reacted to the story with blistering references to the costly and often unnavigable for-profit U.S. health insurance system. “Sending prior authorization, denied claims, collections & prayers to his family,” wrote one.
Florida property insurance sees positive shift as Citizens shrinks
For the first time in more than two years, Citizens Property Insurance Corporation announced that it has reduced its policy count below 1 million as the Florida property insurance market shows signs of recovery.
As of Nov. 29, the state-backed insurer reported 987,650 policies, a decrease largely attributed to the success of its depopulation efforts.
Since January 2024, Citizens’ Depopulation Program has facilitated the transfer of more than 428,000 policies to private insurers approved by Florida’s Office of Insurance Regulation. This development reflects not only the program’s effectiveness but also increased interest from private insurers in Florida’s market.
“These are encouraging signs as we continue our efforts to return to our role as Florida’s insurer of last resort,” said Tim Cerio, Citizens’ president, CEO, and executive director*.
He said that as Citizens’ policy count shrinks, the risk of assessments on non-Citizens policyholders is reduced, a benefit to all Florida residents.
Major Insurer Removes EV Chargers from Corporate Parking Garages Over Fire Risks - Autobody News
State Farm announced the removal of EV charging stations from its corporate parking garages, citing safety concerns related to fire risks identified through an internal Enterprise Risk Assessment and evaluations by local fire departments.
“While we understand the impact to those who rely on EV charging, it is our top priority to ensure a safe and secure working environment for our employees,” the company stated in a message to employees.
The decision affects charging stations at State Farm’s Bloomington, IL, headquarters and hubs across the U.S. The company said it is exploring alternative options, including building EV chargers in surface lots, where fire risks to other vehicles and structures would be minimized.
FIRE RISK CONCERNS
Electric vehicle fires are statistically less common than gasoline-powered vehicle fires in the U.S., according to multiple studies. However, EV battery fires are known to burn hotter and can be more challenging to extinguish.
State Farm did not elaborate on the specific risk levels identified in its parking garages, instead reiterating its commitment to employee safety. “We will announce relevant updates as these plans are finalized,” the company said in a statement to WGLT.
Commentary/Opinion
IBHS Winter Weather Ready guide provides easy-to-do actions to help prevent property damage from colder temperatures
While summertime temperatures have lingered in many parts of the country, the Insurance Institute for Business & Home Safety (IBHS) reminds homeowners winter is around the corner and urges them to use the time now to reduce their risk of property damage – especially from frozen pipes – ahead of severe winter storms.
"The lack of crisp fall air shouldn't cause homeowners to let their guard down," said IBHS Lead Research Meteorologist Dr. Ian Giammanco. "Winter is not far away, and cold air masses will start their more frequent march across the country. This is the ideal time to take actions around the house to reduce the impact winter weather and freezing temperatures could have on your home."
When it's cold outside, interior water damage becomes a concern, with frozen pipes and leaky roofs remaining among the most common causes of losses resulting in insurance claims.
Winters across the United States are becoming shorter, yet arctic air outbreaks still occur and can lead to frozen pipes, especially in areas where extreme cold is rare and in states in the central part of the country with transitional climate zones where warm and cold temperatures typically overlap.
Regional construction practices can also be drivers of interior water damage resulting from frozen pipes. In areas that are typically warmer, including much of the Southern United States, plumbing along exterior walls is prevalent. Homeowners who live in these regions should pay close attention to areas of the home with exposed pipes, as well as crawl spaces and exterior hose spigots, which will be vulnerable when temperatures drop below freezing.
InsurTech/M&A/Finance💰/Collaboration
Farm Bureau Insurance of Tennessee Drives Record Insurtech Adoption and Redefines the Customer Connection
Farm Bureau Insurance of Tennessee, known for receiving numerous accolades for customer satisfaction, attributes its success to a strong commitment to customer service. Maintaining a personal touch with at least one office in each of the state’s 95 counties and 16 regional claim centers, the company stands out.
Farm Bureau Insurance of Tennessee partnered with Hi Marley to enhance their exceptional service by leveraging texting for quicker claim handling, improved cycle time, responsiveness, and reduced phone tag.
By encouraging Hi Marley adoption among adjusters, the carrier has boosted efficiency, strengthened customer relationships, and maintained its personal touch even during challenging claims scenarios.
Ping and ACORD Solutions Group launch property data solution
ACORD Solutions Group, an extension of ACORD, the standards-setting body for the global insurance industry, has partnered with insurance technology provider Ping to create a Property statement of values (SOVs) extraction and global exposure technology solution for carriers, MGAs and brokers.
The partnership leverages Ping’s SOV ingestion technology with ACORD Transcriber’s data extraction and population AI models to process all ACORD Forms, including SOVs 140 and 125s, exchanged in the US property and casualty industry.
With this integration, property underwriters can seamlessly extract statements of values (SOVs) and automatically feed them into catastrophe models like RMS and AIR.
The intuitive user interface displays the visualized output, allowing for quick and easy analysis, ACORD explains. This integration replaces complex and time-consuming manual processes, completing the entire workflow in seconds.
“This strategic partnership with ACORD Solutions Group enhances our ability to deliver comprehensive straight-through processing for our clients,” said Stuart Mercer, CEO of Ping.
Financial Results
US private auto insurers enjoy another quarter of record growth in Q3 | S&P Global Market Intelligence
The profitability surge for private auto insurers in the US continued in the third quarter of 2024 as premiums reached record levels.
Insurers recorded direct premiums written (DPW) of $92.2 billion during the quarter, the highest third-quarter total since 2001, according to an S&P Global Market Intelligence analysis. This marks a $9.78 billion increase from $82.42 billion in 2023.
The private auto sector recorded $267.51 billion in direct premiums earned in the first three quarters of 2024, S&P Global Market Intelligence data shows.
State Farm Mutual Automobile Insurance Co. remained the market leader as it booked year-over-year premium growth of 14.5%. The Bloomington, Illinois-based carrier's DPW increased to $17.64 billion in the quarter, representing a 19.1% market share, a 0.4-percentage-point increase from 18.7% a year ago.
Announcements
Waller Helms and Park Sutton Are Now Part of Houlihan Lokey
With the acquisition of Waller Helms Advisors and Park Sutton Advisors now complete, we are delighted to welcome our new colleagues to Houlihan Lokey.
As a result of the acquisition, Houlihan Lokey’s Financial Services Group is now the leading investment banking advisor to clients in the insurance and wealth management sectors.
On a pro forma basis, and according to data from LSEG (formerly Refinitiv), the new combined group now ranks as the No. 1 advisor for all global M&A transactions in 2023 in the insurance sector; the asset management sector, including wealth management; and the financial services sector, excluding depositories.
With the addition of our new partners, the global Financial Services team now comprises more than 90 financial professionals with senior officers in Atlanta, Boston, Chicago, London, Los Angeles, Miami, New York, and Tokyo. Read more about our Financial Services Group
Statistics
Top 10 Most Read 'Connected' Newsletter Articles of 2024 (to Date)
Over the last several years, our 'Connected' newsletter has curated the latest news, stories and events from across the vast P&C Insurance ecosystem. We reach thousands of subscribers and even more through daily posting on LinkedIn. We hear from readers nearly every day and each interaction, just how much they appreciate the "3 minute scan".
We thought you might like a look at some of the most popular articles and thank all 'Connected' followers - co-curators: Stephen Applebaum & Alan Demers
TOP 10 MOST READ ARTICLES OF 2024 TO DATE:
Category // Headline
Events // SIR (Society of Insurance Research) 2025 Annual Conference |May 4-6, 2025|Chicago, IL LINK
Financial Results // Insurtech Lemonade 2Q24: A Financial Inception or Just Another Magic Show? LINK
- Climate/Change/Sustainability/ESG // Cat models scrutinized as storm losses rise LINK
- Financial Results // Root, Inc. (ROOT) Reports Q2 Loss, Tops Revenue Estimates LINK
- OEMs & Auto Insurance // OEM Summit panel: Telematics data focus on driving behavior, collision avoidance and consumer safety | Repairer Driven News LINK
- AI in Insurance // Building the future of insurance with AI: Deloitte Report LINK
- Research // Wall Street Journal article explores rising cost of repairs due to ADAS LINK
- Commentary/Opinion // 5 ways startups can survive insurtech’s ‘second wave’ , Insurance News LINK
- AI in Insurance // Roots Automation Releases Whitepaper on Unstructured Data Challenges and Opportunities for Insurers LINK
- Legal System Abuse/Social Inflation // Three states passed restrictions on commercial litigation funding in 2024. LINK
Claims/Payments
Colorado attorney’s column explores the total loss settlement process for consumers
A recent business column in Colorado’s The Gazette explores the steps consumers need to research before accepting a total loss settlement from an auto insurance company.
Jim Flynn, a columnist and attorney with Colorado Springs firm Flynn & Wright, says that a vehicle owner recently filed suit against her insurance company, claiming it had breached a Colorado statute.
The suit claimed her insurance company failed to reimburse her for license and registration fees she paid before the crash that covered a time period after the crash, the column says.
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