News
CCC, Tractable reach settlement in five-year court case | Repairer Driven News
Tractable and CCC recently notified the United States District Court for the Northern District of Illinois that the two parties have reached a settlement in a court case that has stretched more than five years.
CCC initially filed an intellectual property lawsuit against Tractable in October 2018. According to a complaint someone posing as “Jason Chen” with “JA Appraisal,” working on behalf of Tractable, bought a CCC One independent appraiser license in August 2017 and passed some of CCC’s trade secrets on to its London-based rival.
Commentary/Opinion
Treasury’s FIO Releases ‘Flawed’ Homeowners Insurance Report, Industry Says
The U.S. Treasury’s Federal Insurance Office last week released what it called the “most comprehensive data on homeowners insurance in history.”
Weeks after a U.S. Senate committee released a study and held a hearing on the affect of climate change on homeowners insurance nonrenewals, the FIO’s report also touched on nonrenewal rates as well as the general availability and affordability of homeowners insurance.
Like the Senate’s report, the insurance industry spoke out against what Jimi Grande of the National Association of Mutual Insurance Companies (NAMIC) called FIO’s “failed and flawed” efforts.
Los Angeles Wildfires
The LA Fires Could Change the Insurance Industry
Summary
For the insurance industry, the threat of massive and profoundly destructive wildfires poses a significant and immediate problem.
Big wildfires didn’t become big by insurance standards until 2016, and insurers don’t yet have the tools in place to manage the risk. Size is only part of the problem — size by surprise is the real issue. One solution could be parametric insurance. This niche form of protection has gained relative popularity in regions where major perils have made it difficult for insurers to provide full protection. It’s simple and highly effective — insurers know how much they’re going to pay out, customers know how much they’re going to get, and the conditions for when payments are made are clear.
Tom Johansmeyer, Harvard Business Review
After the LA Wildfires: When the Smoke Clears
NFPA's wildfire expert weighs in the LA Wildfires, the troubled response, and what needs to happen next.
As Los Angeles County tries to pick up the pieces after one of the most destructive wildfire events in U.S. history, local leaders are confronted with urgent challenges and immense decisions—chief among them, rebuilding areas that were destroyed. NFPA’s wildfire expert weighs in with her perspective on the historic wildfires, the tortured response, and what needs to happen next as the region undertakes the largest reconstruction project in its history.
Will California’s FAIR Plan have enough cash to pay wildfire claims?
The FAIR Plan has already received more than 3,600 claims from fire-impacted policyholders. The LA wildfires are putting California’s FAIR Plan to the test. Whether it can pass is still up in the air.
The California FAIR Plan is the state’s insurer of last resort for homeowners who live in hard-to-insure areas, but it has increasingly become residents' only insurance option as traditional insurers pull back in the state.
More than 450,000 California homeowners now get their insurance through the FAIR Plan, a number that has doubled since 2020. As of last September, the FAIR Plan had a total insurance exposure of $458 billion, up 61% from the year before.
Many of the homeowners impacted by this month’s wildfires are FAIR Plan policyholders. In an update issued on Fri., Jan. 17, 2025, FAIR Plan administrators said that so far, the program has total potential exposure of more than $4 billion for the Pacific Palisades Fire and $775 million for the Eaton Fire. The Plan has already received more than 3,600 claims from fire-impacted policyholders.
Financial Results
Travelers Reports Exceptional Fourth Quarter and Full Year Results
Fourth Quarter 2024 Net Income per Diluted Share of $8.96, up 28%, and Return on Equity of 30.0%
Fourth Quarter 2024 Core Income per Diluted Share of $9.15, up 31%, and Core Return on Equity of 27.7%
Full Year Net Income and Core Income of $5 Billion
Full Year Return on Equity of 19.2% and Core Return on Equity of 17.2%
InsurTech/M&A/Finance💰/Collaboration
Aventum unveils US$12 million tech initiative to build ATOMX platform
Aventum Group has announced a US$12 million investment in technology over the next two years. The initiative will establish an in-house technology infrastructure across its global operations.
The group now dedicates 25% of its global workforce to technology and IT roles, including a specialised Innovation Lab designed for rapid experimentation.
Aventum says that the centerpiece of this investment is the development of ATOMX, a proprietary technology platform aimed at enhancing operational efficiency. Once fully implemented, ATOMX is expected to save 1,000 staff hours monthly and reduce costs by more than US$2 million annually.
ATOMX is a cloud-native platform comprising 10 API and AI-driven products, including tools for claims, bordereau management, pricing, and workbenches for brokers and underwriters. The system is designed for scalability and flexibility, supporting multiple lines of business.
AI in Insurance
Nearly half of consumers "comfortable" with carriers using AI – report | Insurance Business America
Insurity, a provider of cloud-based solutions for insurance carriers, brokers and MGAs, has released its 2025 AI in Insurance Report, which examines consumer perspectives on artificial intelligence in property and casualty insurance, particularly in severe weather.
The report found that 45% of consumers are comfortable with insurers using AI to monitor and issue real-time alerts about potential weather-related risks. However, 42% expressed concern about how the accuracy of these predictions might affect their premiums or coverage.
The results highlight a key challenge for insurers as they introduce AI-powered preventative services while ensuring transparent communication about their reliability and financial impact.
Despite these concerns, the report also reveals opportunities for insurers to build trust. While 26% of consumers are more likely to trust AI-generated early warnings compared to traditional weather forecasts, only 20% view it as important for their insurer to use AI to predict and manage severe weather risks.
Flow launches ‘AI agent’ for specialty coverages - Business Insurance
Wholesale broker Flow Specialty Insurance Services LLC Wednesday launched an artificial intelligence-backed brokerage service that it says can pass the Registered Professional Liability Underwriter exams.
The service is available to retail brokers for specialty coverages, including cyber liability, errors and omissions and executive liability insurance, said David Derigiotis, Detroit-based president of brokerage and head of insurance.
“Artificial intelligence thrives on data and pattern recognition, so we feed it an unbelievable amount of information,” he said.
The information includes insurer brochures, policy forms, quotes, communications with underwriters and coursework for the RPLU exams, which it passed, Mr. Derigiotis said.
“It’s able to get an understanding of market appetite, what a carrier is likely to do on a particular risk, it’s able to understand the nuances of coverage,” he said.
Risks are submitted by email and the service can handle any size account but is aimed at small- to medium-sized risks where brokerage margins are thinner, Mr. Derigiotis said.
Announcements
Cambridge Mobile Telematics Joins Forces with Team Brady for Season 2
Team Brady has appointed Cambridge Mobile Telematics (CMT), the world’s largest telematics service provider, as the Official Telematics Partner for Season 2 of the UIM E1 World Championship, the world’s first all-electric race boat series.
This exciting collaboration marks the beginning of a new season, with Team Brady entering as reigning champions after a historic inaugural season victory.
Recommended Events
ClimateTech Connect April 15-16, 2025
Ronald Reagan Building and International Trade Center / Washington, DC
ClimateTech Connect is the premier global conference and tradeshow for leaders advancing innovation in climate adaptation, resilience, and profitable sustainability through technology.
ClimateTech Connect brings together thought leaders, innovators, policymakers, and leading industry experts to explore the intersection of climate resilience strategies and technology. We are expecting 1500 attendees from the following industry sectors:
- Insurance and Financial Services
- Corporates
- Investors
- Government
- Start-ups and Scale-Ups
Join us for two days of inspiring keynotes, panel discussions, workshops, an electrifying expo hall + demo stage, and networking as we delve into the latest advancements and solutions in climate resilience. Together, we will shape a more sustainable future.
InsurTech Consulting and our 'Connected’ newsletter are proud media partners of ClimateTech Connect with a special 20% discount for our subscribers”. Use code:Connected20, register HERE
2025 PREDICTIONS
2025 Auto Insurance Predictions: Industry Trends with Ravin AI
As insurers continue to publish their financial performance for Q3 2024, a collective sigh of relief may be heard across the industry. The P&C industry is gradually rebounding from consecutive years of huge underwriting losses and auto lines are showing the most improvement in 2024 - gradually, emerging out of some horrendous couple of years.
After all, the direct incurred loss ratio of 64.5% in private auto was down from 74.8% in the year-earlier period and the lowest result in any quarter since the first quarter of 2021.
A recent report by Alan Demers and Stephen Applebaum, describes how premiums and underwriting actions are reshaping insurance products and customer responses. And the hidden factor - fewer claims being filed, probably a result of the fear of rising premiums and higher deductibles with more repairs being funded out-of-pocket.