Financial Results
What's happening with US P&C underwriting results?
The US property and casualty (P&C) industry saw notable improvements in underwriting results through Q3 2023, with the homeowners/farmowners and private passenger auto lines showing significant progress compared with the previous year.
According to a new AM Best report, the homeowners’ line recorded 13.8-percentage point improvement in its direct incurred loss ratio.
The findings, outlined in AM Best’s “3Q24 Snapshot: Personal Lines Propels Improvement in Direct P/C Industry Underwriting Results,” are based on third-quarter statutory statements submitted by companies and aggregated by AM Best as of January 6, 2025.
The report highlights that, for the first nine months of 2024, the US property/casualty industry experienced improved direct underwriting results, mainly due to an increase in earned premiums. These gains outpaced the rise in incurred loss and loss adjustment expenses, as well as other underwriting expenses.
News
Triple-I: Louisiana insurance market faces challenges despite reforms
State seeks solutions to stabilize insurance market
Triple-I: Louisiana insurance market faces challenges despite reforms
While legislative reforms in 2024 marked a significant step toward stabilizing Louisiana’s troubled insurance market, more comprehensive measures are needed to address longstanding issues of excessive litigation and escalating costs, according to a recent report by the Insurance Information Institute (Triple-I).
The report, Trends and Insights: Louisiana Insurance Market, highlights that Louisiana remains one of the least affordable states for personal auto and homeowners’ insurance. Research from the Insurance Research Council (IRC) indicates that, in 2022, the average annual expenditure for auto insurance in Louisiana reached $1,588 – nearly 40% above the national average. Homeowners insurance was similarly costly, with an average annual expenditure of $2,178, which is 54% above the national average and accounts for 3.81% of the state’s median household income.
“Louisiana, with the leadership of its insurance commissioner, is potentially on the path toward stabilizing its insurance market,” said Sean Kevelighan, CEO of Triple-I. “We have also seen in states such as Florida that comprehensive legal reform works. Louisiana has more to do, and we hope the progress being made stays on course.”
Commentary/Opinion
Howard Tullman: How are we going to rebuild California?
Howard Tullman, American entrepreneur, venture capitalist, educator, writer, lecturer, founder of CCC and art collector, joins Lisa Dent to discuss his most recent article on Inc.com, which highlights the unfortunate circumstances taking place in California in which a number of people and businesses are not properly insured and how insurance companies are now reducing coverage.
California’s home insurance prices set to soar – Silicon Valley
Here’s the California home insurance debacle made simple: No more bargains.
Property owners are keenly aware of the state’s numerous risks to their property, most notably wildfires. But they might be surprised to learn that California home insurance policies are among the nation’s cheapest.
How often do we say “low” regarding any Golden State housing cost?
Such thriftiness translated to California essentially asking insurers to take a high-risk gamble with low rewards. Would you make this bet?
Insurers knew it was a losing gamble, so they increased their odds of success by removing the highest-risk customers. That’s why so many Californians lost their home insurance.
Now, economics is rarely straightforward. Yet this crisis is a textbook example of what can occur when prices are kept too low: the supply of the product suffers.
How low?
It’s time for the trusty spreadsheet.
Contemplate three yardsticks of property risk in the 48 states of the continental United States – an overall hazard ranking from CoreLogic, a measurement of insurance losses from PolicyGenius, and SmartAsset’s estimate of overall potential damages.
No surprise. California’s average score translates to the nation’s second-riskiest place for property owners.
Next, contemplate five measurements of annual home insurance premiums paid last year – from Nerdwallet, Insure.com, Bankrate, Value Penguin and Insurify.
Surprise! California’s average cost ranks as the ninth lowest among the 48 states.
Research
New Study Highlights Challenges in Personal Auto Insurance Rate Filings
A recent study from the Insurance Research Council (IRC), an affiliate of The Institutes, has shed light on the increasing difficulties in securing approved rate filings for personal auto insurance across the United States. According to the report, these growing challenges have negatively impacted market performance over the last decade.
The study, Rate Regulation in Personal Auto Insurance: Comparison of State Systems, analyzed regulatory processes from 2010 to 2023. It revealed that while the number of rate filings has remained steady at roughly 10,200 annually, the time required for approval has grown by about 40%. Similarly, the percentage of filings that receive less-than-requested rate changes has risen by 10 points, while the severity of those reductions has increased by 2 points.
Consumers Want Transparency in AI-Driven Processing for Severe Weather Claims, but Trust in Reliability Remains Low, According to Insurity Survey
Insurity, a leading provider of cloud-based solutions for insurance carriers, brokers, and MGAs, today released its 2025 AI in Insurance Report, shedding light on consumer sentiment around the use of artificial intelligence (AI) in claims processing after severe weather events. The report shows that while 64% of consumers believe transparency is critical when insurers use AI to assess and process claims, many remain skeptical of the technology’s reliability.
The findings reveal that 44% of consumers do not believe that AI-based damage assessments, such as those conducted using drones or satellite imagery, are more reliable than assessments performed by human inspectors. Additionally, while AI has the potential to improve the speed and efficiency of claims processing, only 28% of consumers agree that AI could help their insurer handle claims more efficiently after severe weather events.
This research highlights a critical gap between what consumers expect and what they trust. While there is strong demand for transparency, insurers need to do more than just open the black box of AI. To build trust, insurers must ensure their AI-driven assessments are accurate, easy to explain, and seamlessly integrated into their claims processes to provide meaningful benefits to policyholders. By demonstrating transparency and reliability, insurers can unlock the full potential of AI and create a more seamless, efficient claims experience.
Desirability of flood insurance is high in the US as weather events worsen - Life Insurance International
significant proportion of US consumers are denied home insurance because of their property being in a risk-prone location as per a GlobalData survey. For example, flood cover in Florida has become increasingly scarce. Solutions need to be devised so that customers can find adequate cover amid the worsening of weather events.
According to GlobalData’s 2024 Emerging Trends Insurance Consumer Survey, 19.3% of US home insurance policyholders have been denied coverage in the past, with over half (57.7%) believing that this was linked to the property’s location being in a high-risk area, such as an area prone to flooding. In fact, 61.4% of policyholders cite cover for flood damage as a desirable or very desirable home insurance feature as per further findings from the survey.
An insurance policy should ideally provide cover for common risks as standard, but this is not always the case. Finding flood cover is becoming a real struggle in high-risk areas, including in certain parts of the US. As climate change worsens the frequency and severity of weather events and natural disasters, insurers are losing appetite to provide cover for certain risks, with many pulling out cover from high-risk zones while prices have mounted. This can make it difficult for customers who need—or want—to be covered against specific risks.
Accident Recorders Market is Anticipated to Grow US$ 6.8 B by 2034 at a CAGR of 7.3% | Fact.MR Report
The innovative accident recording solutions are revolutionizing vehicle safety through intelligent monitoring systems, thus enabling precise documentation of incidents while meeting the regulatory requirements and insurance needs.
The global accident recorders market was accounted for US$ 3,350.4 million in 2024 and projected to reach a CAGR of 7.3% to end up at US$ 6,777.8 million by 2034.
The accident recorders market is one of the most critical segments in automotive safety technology, representing sophisticated devices that capture and analyse crucial data during incidents involving a vehicle. From basic event data recorder to multifunctional monitoring units that comprise several sensors and high-definition cameras with built-in advanced analytics, accident recorders of today offer complete information about a vehicle's dynamics, drivers' behaviour, and ambient conditions leading to the actual time of incident and its consequent outcomes.
Commercial fleet operators appreciate these systems especially for risk management and operational efficiency. The combination of artificial intelligence and cloud connectivity has made accident recorders more capable and now allows for real-time monitoring and predictive analysis. They are now integral to insurance claims processing, legal proceedings, and fleet management operations. Manufacturers continue to innovate with features like night vision, multiple channel recording, and automated incident reporting.
Telematics, Driving & Insurance
Samsara Expands Its Strategic Collaboration with Stellantis and Enables Access to Millions of Connected Vehicles Across Europe
Samsara Inc. (NYSE: IOT), the pioneer of the Connected Operations Cloud®, today announced a landmark integration with Mobilisights, the Data as a Service Company of Stellantis, one of the world’s largest vehicle manufacturers. The collaboration will provide businesses across Europe with seamless, hardware-free access to vehicle telematics data, enabling smarter fleet management and operational efficiencies.
“By eliminating the need for aftermarket hardware, this integration simplifies vehicle onboarding and ensures tamper-proof telematics access”
Samsara’s Connected Operations platform will integrate directly with Stellantis’ built-in telematics hardware, covering Stellantis’ brands including Alfa Romeo, Citroën, DS Automobiles, FIAT, Jeep®, Opel, Peugeot, and Vauxhall. The integration applies to most vehicles manufactured after 2024, plus select models from 2018–2024, spanning both electric vehicles (EVs) and commercial fleets.
“By eliminating the need for aftermarket hardware, this integration simplifies vehicle onboarding and ensures tamper-proof telematics access,” said Paul George, Director of OEM at Samsara. “We’re excited to work with Mobilisights to deliver real-time data insights that empower European businesses to operate more efficiently, safely, and sustainably.”
Lawsuits target use of driver data by insurers, automakers - Insurance News
Several recent lawsuits allege driver data from embedded auto technology and mobile phone apps that track driving habits is being used unethically and illegally, including being shared with consumer reporting agencies that use the data for credit scoring, underwriting, marketing, and other purposes.
These cases, and several others, exemplify the growing importance of consumer rights to privacy and ethical data use by insurers and automakers, as technology becomes a key tool for underwriting and risk management. Many drivers are aware of the technology that tracks their driving habits as a means to obtain discounts on their auto insurance premiums.
In one case that was settled recently, the Federal Trade Commission said General Motors and its subsidiary, OnStar, violated consumer privacy laws by sharing sensitive geolocation and driver behavior data without obtaining the consent of drivers. OnStar provides connected vehicle services, such as roadside assistance, navigation, and vehicle diagnostics. These services involve collecting geolocation data and driver behavior data, such as driving speed, braking patterns, and more.
The FTC said GM and OnStar violated privacy rights by not receiving consent from drivers that their information would be shared with third-party companies. In the settlement, GM and OnStar agreed to a five-year prohibition on disclosing geolocation and driver behavior data to consumer reporting agencies.
InsurTech/M&A/Finance💰/Collaboration
Roamly Expands Offerings on Its Digital Insurance Platform to Include Motorcycle and Boat Coverage
Roamly, a global leader in digital insurance technology and solutions announced a major expansion of its product lineup. Already recognized as a leader in Specialty Insurance, Roamly is now entering the Motorcycle and Boat insurance markets by leveraging its proprietary digital insurance platform, reinforcing its position as the go-to solution for specialty insurance across recreational, mobility and commercial lines.
This strategic expansion aligns with Roamly's mission to modernize the insurance experience by partnering with leading insurance carriers like Progressive NYSE: PGR, Safeco, Foremost and leveraging the digital-first Roamly Enterprise platform. Using its cutting-edge technology and deep industry expertise, Roamly continues to lead the charge in disrupting traditional insurance models.
"Our customers have made it clear that they value convenience, flexibility, and transparency when it comes to protecting their passions," said Brad Simmons, General Manager Roamly. "Expanding into motorcycle and boat insurance is a natural progression of our commitment to cover everything adventurers love through an easy-to-use digital platform."
Insurance M&A Deals Decline Despite Major Acquisitions
Despite a 10% drop in the number of mergers and acquisitions (M&A) in the insurance distribution sector in 2024, the year was marked by several large transactions, according to a report by OPTIS Partners.
The report revealed that there were 750 announced deals in 2024, down from 833 deals in 2023, and 1,031 deals in 2022. This total is 15% below the five-year average.
However, the year was not without significant transactions. Notably, Aon’s $13 billion acquisition of NFP Corp., Marsh & McLennan Agency’s purchase of McGriff Insurance Services for $7.75 billion and Arthur J. Gallagher & Co.’s announcement of plans to acquire AssuredPartners for $13.45 billion.
“Aon, Marsh, and Gallagher further cement their roles as the three largest insurance brokers in the world with these purchases and more significant players in the U.S. middle market,” the OPTIS report noted.
Over the last decade, eight firms accounted for 42% of all M&A deals, including: Acrisure, Hub International, BroadStreet Partners, AssuredPartners, Arthur J. Gallagher, PCF Insurance, World Insurance Associates and Alera Group.
In 2024, these firms accounted for 36%, or 274 of the year’s deals.
People
Everest Group welcomes Jim Williamson as CEO
The Everest Group board of directors has named Jim Williamson (pictured) as the company’s president and chief executive officer, effective immediately, according to a company statement.
Williamson, who previously served as the acting CEO, has been with Everest since 2020, holding various leadership roles, including executive vice president, group chief operating officer, and head of the reinsurance and insurance divisions. The Everest Group highlighted that Williamson brings over two decades of experience in the property and casualty (P&C) insurance sector, having held senior positions at industry-leading companies such as The Hartford, Chubb, and ACE.
Legal System Abuse/Social Inflation
RIMS legislative priorities include litigation funding transparency
The Risk & Insurance Management Society Inc. Thursday called for more transparency on third-party litigation funding as it outlined its legislative priorities for 2025.
“Nuclear verdicts continue to have a detrimental impact on businesses, and for some organizations, legal risk has jumped to the top of the risk register,” RIMS said in a statement.
The organization called for greater transparency on third-party litigation funding, which allows outside parties to provide financial support to a plaintiff in a lawsuit in exchange for a share of the settlement or judgment.
It also called for Congressional leaders to act against foreign third-party entities financially backing civil litigation.
In other legislative priorities, RIMS said it would push for a federal framework for protecting data privacy and cybersecurity and continue to call for the reauthorization of a long-term National Flood Insurance Program.
Most states have enacted data privacy and data breach notification laws, creating “a patchwork of state laws that cause confusion and lessen efficiency, especially for businesses operating in multiple jurisdictions,” RIMS said.
The organization will continue to advocate for “a national, unified standard for data security and breach notification,” the statement said.