News
Amid growing issues with affordability, P&C insurers outspend peers on lobbying
As issues with the affordability and availability of property and casualty insurance in the US have turned into a nationwide problem, underwriters of that coverage have outspent their peers on lobbying the US government over the past decade.
Over the past 10 years, property and casualty (P&C) insurers have consistently put more toward lobbying expenditures than both health and life insurers, according to an S&P Global Market Intelligence analysis of year-end statutory filings.
In 2023, the last year for which data is currently available, P&C insurers spent approximately $57.2 million on lobbying while health insurers spent about $49.2 million. Life insurers spent approximately $31.1 million in 2023.
Although insurers report lobbying expenditure in their annual regulatory statements filed with the National Association of Insurance Commissioners, questions remain about how precise this reporting is as figures listed in other sources can vary greatly.
Los Angeles-area fire explodes in size, forces thousands to evacuate
Strong winds have fanned the blaze, which at one point tripled in size in just an hour.
A Southern California wildfire whipped by “particularly dangerous” winds destroyed homes, shut schools and spurred the evacuation of thousands of people near Malibu this week.
The Franklin Fire scorched about 2,600 acres after starting late Monday and remains out of control, according to Cal Fire, the California Department of Forestry and Fire Protection. Strong winds have fanned the blaze, which at one point tripled in size in just an hour.
The National Weather Service is warning that the “particularly dangerous situation” will continue through 2 p.m. local time, though windy conditions will continue to pose a significant threat through Wednesday.
About 18,000 residents were under evacuation orders or warnings as of Tuesday morning. A stretch of the Pacific Coast Highway, spanning from roughly Pacific Palisades to central Malibu, has been closed to all traffic except those evacuating the area. All Malibu schools are closed until further notice, and Malibu City Hall has been evacuated, with officials operating out of the nearby city of Calabasas.
“This fire is not contained, and we remain under an immediate threat because of red-flag conditions,” Los Angeles County Fire Chief Anthony Marrone said Tuesday at a press briefing. About 700 firefighters are on the scene, and that figure may swell to as many as 1,000, he said.
Recognizing an Improved Insurance Marketplace in California, Farmers Insurance® to Expand Its Coverage Options in the State
Farmers Insurance® today announced it will resume offering coverage for multiple lines of insurance in California to new customers, including condominium, renters, umbrella, landlord, vacant and manufactured home, in a phased reintroduction beginning December 14, 2024. Many of the reopened coverage offerings had been temporarily paused for more than a year.
In addition, Farmers®, one of the few insurance carriers that did not halt offering new homeowners insurance coverage in the state, will increase the number of homeowners policies it will accept from new customers to 9,500 per month, from its previous commitment of 7,000 monthly.
"Farmers Insurance has decided to take these steps to increase coverage availability for California consumers because we recognize that the state's insurance marketplace has indeed improved," said Behram Dinshaw, president of personal lines for Farmers Insurance. "In addition, with the impending implementation of Commissioner Ricardo Lara's Sustainable Insurance Strategy in the coming year, we want to be well-positioned to provide even more coverage options to residents in the state."
Cruise’s robotaxi service will likely shut down as GM pulls its funding
[Reddit Post 12/11/24...."Kyle Vogt (Cruise co-founder) on X: In case it was unclear before, it is clear now: GM are a bunch of dummies"
General Motors said it would no longer fund its Cruise robotaxi service as it seeks to focus its spending on autonomous vehicle development specifically for personally owned vehicles. Now Cruise employees will be combined with GM’s internal teams working on advanced driver assist systems, like Super Cruise, as well as its project to develop autonomous vehicles to sell to customers for personal use.
Ultimately, the project became too expensive for GM to justify the huge amounts of money spent to prop it up. And the automaker found it increasingly difficult to convince its shareholders that the money-losing operation would eventually pay off. The robotaxi subsidiary lost a staggering $3.48 billion in 2023 and has been seen by some as an albatross for the automaker, sucking up cash and lacking a clear path to profits.
“Given the considerable time and expense required to scale a robotaxi business in an increasingly competitive market, combining forces would be more efficient and therefore consistent with our capital allocation priorities,” GM CEO Mary Barra said in a call with investors Tuesday evening.
Commentary/Opinion
California insurance industry battered by wildfires, inflation
CSAA President and CEO Mike Zukerman talks about these and other issues causing carriers to depart the Golden State.
More than one million acres have been burned by wildfires in California in 2024, according to CAL FIRE.
As of Dec. 10, there have been 1,045,384 acres burned, 7,897 wildfires, one fatality, over 2,000 structures damaged or destroyed and more than 550,000 emergency responses.
At the same time, the state is still mired in economic inflation. According to the U.S. Bureau of Labor Statistics, U.S. inflation rose to 2.6% in October.
With California rocked by persistent inflation and natural catastrophes like wildfires and earthquakes, PropertyCasualty360.com spoke to Mike Zukerman, the president and CEO of CSAA Insurance Group, about the state of insurance in California.
Research
Report estimates fatal crashes cost U.S. $417 billion annually
The annual economic cost for fatal crashes in the U.S. is estimated to be $417 billion, according to a recently published 2025 Roadmap for Safety report produced by the Advocates for Highway & Auto Safety.
This includes $130 billion in lost workplace and household productivity, $141 billion in property damage costs, $108 billion in other costs, and $38 billion in present and future medical costs, the report says.
“When loss of life, pain, and decreased quality of life are added to economic costs, it is estimated to exceed $1.4 trillion,” the report says.
Each person living in the U.S. essentially pays an annual “crash tax” of nearly $1,268, the report says.
Insurtech MGAs reshape insurance models—report
A new research report by ReSource Pro and InsurTech NY reveals insights into the evolving role of insurtech managing general agents (MGAs) in the insurance sector.
The findings highlight that 53% of insurtech MGAs rely on custom-built policy administration systems, while only 7% report annual burn rates exceeding $3 million.
Additionally, insurtech MGAs are achieving a one-to-one ratio between capital raised and gross written premium, with 80% creating proprietary products focused on specialty lines, liability coverage, and emerging areas like parametric and on-demand insurance.
The report examines how MGAs are shaping business models, product delivery, underwriting practices, and technology adoption. It underscores their efforts to identify growth opportunities in the property and casualty market while enhancing customer access to traditional insurance products.
"While significant attention has been given to advancements in insurance technology, the role of MGAs within this ecosystem has remained underexplored," said Mark Breading, ReSource Pro senior partner.
Predict & Prevent
Nationwide Expands Ting Program: More Homes to Receive Free Cutting-Edge Fire Prevention Technology & Service
How Nationwide is using innovative technology to help protect families and stop electrical fires before they start
Nationwide has always been dedicated to protecting what’s most important. The company is excited to announce that it is deepening that commitment with the expansion of its innovative Ting fire prevention program. Additional new and current policyholders are eligible to receive a free Ting sensor, along with five years of complimentary fire prevention service.
Ting, developed by Whisker Labs, is a state-of-the-art sensor and service that monitors a home's electrical system to help detect fire hazards before they become dangerous. By mitigating these hazards in the earliest stages, Ting offers homeowners peace of mind and an additional layer of protection for their families and properties.
This latest expansion of the Ting program comes as more homeowners are embracing smart home technology to enhance safety. According to a recent Nationwide survey, 61% of homeowners with smart devices cite safety and security as key benefits, highlighting the growing need for proactive solutions like Ting.
"Since launching our Ting program two years ago, we've seen firsthand how much members value the increased protection Ting provides,” said Sarah Jacobs, SVP Personal Lines Product and Underwriting at Nationwide. “During this time, Ting has significantly reduced fire claims, increased customer loyalty, and demonstrated a clear positive ROI. This latest expansion is an exciting step forward in our five-year commitment to helping protect members from devastating electrical fires. The Ting program is a winner for Nationwide and our members.”
InsurTech/M&A/Finance💰/Collaboration
Activist pushes insurer to separate venture unit
Jana Partners has amassed a stake in insurer Markel Group Inc. and is pushing the specialty insurance company to explore a separation or sale of its private investments business, according to Scott Ostfeld, managing partner at the activist investment firm.
Markel is “significantly undervalued” and would benefit from improvement in execution of its core insurance business, Ostfeld said on Tuesday. Jana believes that the entire company is an “attractive” takeover target for larger insurers.
The size of Jana’s stake in Markel wasn’t disclosed. A representative for Markel didn’t immediately respond to a request for comment.
Shares of Glen Allen, Virginia-based Markel have jumped 24% this year, giving the company a market value of almost $23 billion. The stock performance trails the Dow Jones US Property and Casualty Insurance Index, which is up 36% this year.
Markel’s core business is specialty insurance, where underwrites policies for individuals and businesses in the US, UK, European Union, Asia and Australia, according to its annual report. It also has an investment arm and private equity-like division called Markel Venture, whose holdings include luxury handbag brand Brahmin and crawler crane firm Buckner Heavylift Cranes, according to its website.
Phixey Unveils Public Stock Offering While Reinventing the Phone Protection Industry
Phixey, an industry-leading device repair and protection company, announced the launch of a public offering for its security through StartEngine. This iconic milestone allows the company to accelerate its disruption of the $24 billion device insurance industry and the $4 billion cell phone repair industry with innovative products.
Phixey, a trailblazer in device repair and protection, unveils its groundbreaking public stock offering through StartEngine. This milestone accelerates Phixey’s mission to disrupt the $24 billion device insurance and $4 billion repair industries with innovative solutions like $19.95/year device protection, nationwide repairs, and $5/month 5G wireless plans.
Phixey, a trailblazer in device repair and protection, unveils its groundbreaking public stock offering through StartEngine. This milestone accelerates Phixey’s mission to disrupt the $24 billion device insurance and $4 billion repair industries with innovative solutions like $19.95/year device protection, nationwide repairs, and $5/month 5G wireless plans. Join the revolution and invest in Phixey to redefine value in the tech space. Don’t miss out on investor-exclusive bonuses!
Phixey disrupts the $24 billion device insurance industry with its revolutionary $19.95/year protection plan.
The offering, open to qualified investors with a minimum investment of $500, consists of Common Shares. The initiative enables Phixey to enhance its brand presence and redefine itself in the device repair and insurance space.
Phixey's standout services include:
Device Protection Plan: $19.95/year, with free phone repair if necessary, no monthly premiums and no deductibles.
Nationwide Repair Network: Phixey has convenient repair locations throughout the United States.
Phixey Wireless is a wireless company powered by T-Mobile that offers the lowest 5G plans in the nation, exclusive to Phixey members.
$4.95 Accessories: Accessories for your phone are priced at $4.95 with free shipping Investor-Exclusive Bonuses
To celebrate, Phixey is offering investors bonuses for a limited time. Depending on the amount of their investment, investors can receive 7% to 15% bonus shares. For instance, a purchase of 10,000 shares during this period will result in 11,000 shares.