Los Angeles Wildfires
LA smoke damage claims may prompt coverage questions - Business Insurance
Smoke damage from the Los Angeles wildfires will increase uncertainty about the size of insured losses and may spark coverage questions for some policyholders.
Many commercial property insurance policies cover smoke as a cause of loss, but attorneys say businesses disrupted by the fires should review their policies and possible exclusions.
A recent federal court ruling in California confirmed that wildfire smoke is covered under an insurance policy. However, coverage questions may still arise, particularly for excess and surplus lines policies, experts say.
Revealed - California FAIR plan faces $4.8 billion exposure from LA fires |
Figure could grow as the wildfires continue to cause devastation
Revealed - California FAIR plan faces $4.8 billion exposure from LA fires
The California FAIR Plan, the state’s insurer of last resort, has reported a combined exposure of approximately $4.8 billion due to the Pacific Palisades and Eaton fires in the Los Angeles area.
The FAIR Plan’s potential exposure is over $4 billion for the Pacific Palisades Fire and more than $775 million for the Eaton Fire, according to an update provided to BestWire. The FAIR Plan insures about 22% of the structures affected by the Pacific Palisades Fire and 12% of those impacted by the Eaton Fire, based on the Cal Fire incident maps.
"While each fire is unique, for context, actual claims following a fire have historically represented, on average, about 31% of the total exposure in that area," the FAIR Plan noted. The update clarified that "exposure" refers to the total amount of insurance for properties, not the actual number of claims or anticipated claim payments.
As of January 17, the FAIR Plan had received more than 3,600 claims. The types and amounts of claims vary, and the FAIR Plan is actively engaging with those who have filed claims, with the financial resources in place to ensure all claims are addressed.
In the Pacific Palisades area, the number of policies under the FAIR Plan increased by 85% year-over-year, reaching 1,430 policies in the 90272 ZIP code, an area significantly impacted by the fires.
AI in Insurance
Nearly Half of Consumers Feel Comfortable with Insurers Using AI to Monitor Severe Weather Risks, but Concerns About Premiums Remain High, Insurity Survey Finds | Business Wire
The Insurity 2025 AI in Insurance Report highlights consumer sentiment on AI adoption in the P&C insurance industry, uncovering crucial insights for insurers navigating the future of risk management
-Insurity, a leading provider of cloud-based solutions for insurance carriers, brokers, and MGAs, today released its 2025 AI in Insurance Report, highlighting key consumer opinions on the use of artificial intelligence (AI) in P&C insurance, specifically how it pertains to severe weather.
The report revealed that while 45% of consumers state feeling comfortable with their insurer using AI to monitor and provide real-time alerts about potential weather-related risks, 42% express concern about how the accuracy of those predictions could influence their premiums or coverage. These findings highlight a significant challenge for insurers as they work to balance the introduction of AI-powered preventative services with transparent communication about their reliability and potential financial impact on policyholders.
Despite these concerns, there are clear opportunities for insurers to build trust. While 26% of consumers say they are more likely to trust AI-generated early warnings compared to traditional forecasts, only 20% consider it important that their insurer use AI to predict and mitigate severe weather risks. To foster confidence, insurers must demonstrate the practical benefits of AI-based alerts and predictions while being transparent about their accuracy and limitations.
Claims
Future of Jobs: Claims Adjuster Among Fastest Declining Professions
Insurance claims adjusters have something in common with postal clerks, cashiers, administrative assistants and graphic designers. These jobs all rank among those in the greatest decline over the next five years, a new report says.
The ranking, included in the “Future of Jobs Report 2025” published by the World Economic Forum early this month, doesn’t say specifically why the job grouping “claims adjusters, examiners, and investigators” landed 12th among jobs that will experience the fastest net percentage decline by 2030, and 15th among those that will have the biggest decrease in real terms over the same period.
In general, however, the report, drawing information from a survey of over 1,000 executives in 22 industries and 55 economies representing more than 14.1 million employees, points to technological advancements, economic pressures, demographic shifts and geoeconomic tensions as key factors reshaping industries and professions worldwide.
Susanne Sclafane, Executive Editor, Wells Media Group
InsurTech/M&A/Finance💰/Collaboration
M&A Activity Involving VC-Backed Startups Picked Up In 2024
While last year wasn’t the cascade of M&A activity many had wished for (and certainly the IPO pipeline never unfroze), it did provide some hope. Deal activity actually increased 7% from 2023, with Q4 being the strongest quarter for M&A involving VC-backed startups in seven quarters, Crunchbase data shows.
The biggest deals last year in the AI space were credit card giant Mastercard agreeing to buy threat intelligence company Recorded Future for $2.65 billion in September, and CCC Intelligent Solutions buying EvolutionIQ — an AI company that offers claims guidance solutions for insurance companies — for $730 million late last year.
Announcements
PLRB Partners with the Spencer Educational Foundation to Support the Future of Insurance Education
The Property & Liability Resource Bureau (PLRB) is proud to announce its partnership with the Spencer Educational Foundation, a leader in fostering the development of future insurance and risk management professionals. This collaboration highlights PLRB's ongoing commitment to empowering the insurance community and cultivating innovation in the industry.
The partnership will take center stage at the PLRB Claims Conference, held March 30 – April 2, 2025, in Indianapolis, IN, where the Spencer Educational Foundation will participate in PLRB Presents, a dynamic platform for engaging discussions and thought leadership. This collaboration exemplifies both organizations' dedication to shaping the next generation of insurance professionals.
The Spencer Educational Foundation has a long-standing history of supporting education through scholarships, internships, and innovative programs designed to prepare students for successful careers. By partnering with Spencer, PLRB reinforces its mission to foster industry collaboration and provide impactful educational opportunities.
"Investing in education is investing in the future of our industry," said Mike Brode, Vice President of Meetings & Education at PLRB. "Through this partnership with Spencer, we're creating opportunities for students and young professionals to thrive in a dynamic and evolving field."
Recommended Events
The InsurTech Virtual Summit 2025 - Unlocking the Future - Presented by Carrier Management
We are looking for experts to join the discussion at Carrier Management's InsurTech Virtual Summit 2025. This year's theme is Unlocking the Future, featuring four expert panels on ways InsurTechs are shaping the future of insurance.
Do your areas of expertise relate to one of these topics?
- The use of AI and new tech tools for claims and underwriting
- Navigating the challenges of updating legacy systems and future-proofing operations
- Methods of collaboration between traditional insurers and InsurTechs
- The legal and regulatory landscape regarding AI, emerging technologies, and insurance
If so, then we want to hear from you!
Use our submission form to submit yourself or a colleague for consideration, and you may be selected to speak or to participate in a panel.
InsurTech Hartford Symposium
April 29th & 30th
Connecticut Convention Center
The InsurTech Hartford Symposium is a highly immersive conference experience that brings together great minds and world-class leaders offering the perfect ecosystem to Learn, Connect, and Unwind.
The InsurTech Hartford Symposium is in its fifth year and back in Downtown Hartford. People in the region are getting excited to have the event return to their backyard, and people from out of state are happy for us to be closer to transportation hubs such as high-speed trains and BDL airport.
Pre-Day Event ; EmpowerHER, April 28th & 29th
Join us for the Inaugural Insurance Thought leadership Event This one-of-a-kind gathering designed to celebrate and empower women and allies in the InsurTech industry. Partnering with the InsurTech Hartford Symposium, we’re offering this exclusive pre-event to maximize your experience in Connecticut and provide you with opportunities to connect, learn, and grow.
This in-person event is dedicated to inspiration, connection, and celebration—a chance to engage with thought leaders, gain career-boosting insights, and foster meaningful relationships that will propel your career in insurance and technology. REGISTER
InsurTech Consulting, LLC and ‘Connected’ newsletter are proud supporters of InsurTech Hartford Symposium and EmpowerHER, available to assist with sponsorship opportunities. Please contact alan@insurtechconsult.com
Data Privacy
Cybersecurity is top threat to business growth: Chubb | Digital Insurance
Cybersecurity and technology disruption are the two top threats to business growth identified by a Harris Poll of 500 business leaders, commissioned by Chubb for Risk Decisions 360: Emerging Risks That Can Impede Sustainable Company Growth.
Almost 90% of companies have or will adopt business interruption coverage for cyber incidents, natural disasters and supply chain disruptions. According to the report, over half of respondents have coverage in place and a third plan to in the next 12 months.
Juan Luis Ortega, president, North America insurance at Chubb, said in a statement that the report provides insights into the evolving risk landscape to empower businesses to make decisions around growth.
[MORE](https://www.dig-in.com/news/cybersecurity-is-top-threat-to-business-growth-chubb?utm_campaign=NL_DIG_Morning_Briefing_01222025&position=1&utm_source=newsletter&utm_medium=email&campaignname=NL_DIG_Morning_Briefing_01222025&oly_enc_id=8020I0668790A6R
2025 PREDICTIONS
J.D. Power and ValuePenguin expect continued insurance rate increases; 2025 could see UBI uptick
J.D. Power expects auto insurance policyholders to continue shopping for lower rates this year and perhaps an uptick in usage-based insurance (UBI) adoption.
Last year, insurance costs hit record levels. The average annual premium was $2,543, up 26% from 2023, according to J.D. Power.
ValuePenguin predicts drivers will pay an average of 7.5% more this year for auto insurance as the new year kicked off with an average nationwide monthly premium of $175 for full coverage. Nevada, Florida, and Michigan premiums are the highest at more than $250 a month, according to ValuePenguin’s “State of Auto Insurance in 2025” report.
By May 2024, 49% of auto insurance customers said they were shopping for a new plan, and by Q3, shopping rates had reached a record high, according to J.D. Power.
“However, with virtually every carrier increasing rates, all those shoppers had very few alternatives and many stayed put. Now, that’s all about to change,” states J.D. Power’s latest “Insurance Intelligence Report.”
2025 Insurance Industry Outlook - West Monroe
3 key trends shaping the insurance industry in 2025
Discover West Monroe's 2025 Insurance Industry Outlook, highlighting 3 key trends, including risk management innovation, operations modernization, and data-driven personalization.
Insurance Industry Trends in 2025
- Managing Risk in an Uncertain Era Insurers must enhance risk assessment capabilities and leverage data analytics to address escalating risks from extreme weather, economic uncertainty, and technological advancements.
- Modernizing Operations and Tech Investing in advanced technology and replacing legacy systems will help insurers improve efficiency and adapt to evolving risks and customer needs.
- Making 2025 the Year of Personalization with Data Data-driven solutions enable insurers to offer personalized products and services that build customer loyalty and provide competitive differentiation.
- BONUS: Insurance M&A: Opportunities Amid Resilience Despite economic uncertainty, the insurance sector remains attractive to investors, with M&A activity showing resilience compared to broader market declines.
People
One Inc, a Leading Digital Payments Platform in Insurance, Announces New Board Chairman to Propel Next Growth Phase
Scott G. Stephenson brings extensive insurance expertise to fuel expansion and innovation.
One Inc, a leading payments network and software platform for the insurance industry, today announced it has appointed insurance technology industry veteran Scott G. Stephenson Chairman of the Board of Directors.
Stephenson’s appointment follows the investment by Nordic Capital joining Great Hill Partners as owners in One Inc. One Inc’s management team also continues to hold a significant investment, underscoring its commitment to providing solutions that improve the efficiency of the entire insurance market.
From collecting premium payments to disbursing claims, One Inc strives to ensure a frictionless experience, merging all payment flows into one unified software platform. One Inc’s powerful payments network, which now includes 900,000 vendors and processes more than $96 billion in annual payments, is at the forefront of a transformation in the insurance industry. The company proudly serves over 265 leading carriers, MGAs and TPAs.
Canada
Beneva and Gore Mutual to merge
Beneva, Canada’s largest mutual insurer, and Gore Mutual, one of the oldest property and casualty mutual insurers in Canada, are announcing their intention to combine their businesses to drive future growth.
Together, the combined operations will have over 6,100 employees and 3.8 million members and customers. With close to $8 billion of total premium and $27 billion of assets, the merger will consolidate Beneva’s ranking as the seventh largest insurer in Canada, by total premium. Upon combination with Gore Mutual, Beneva will become the 10th largest property and casualty insurer in Canada and continue to be the third largest property and casualty insurer in Quebec.
As part of this transaction, Gore Mutual will combine its operations with Unica Insurance, a Beneva subsidiary and a niche personal and commercial insurer based in Mississauga Ontario, and operate as a standalone subsidiary.
The merger is expected to be finalized in 2026.
Beneva and Gore Mutual will merge under the Beneva brand.