Research
U.S. Department of the Treasury Releases Report on Personal Auto Insurance Markets and Technological Change | U.S. Department of the Treasury
[Ed. Note: We consider this essential reading for all of us in the industry. While the Federal Insurance Office (FIO) has taken a lot of criticism from carriers, lawmakers and state regulators for being redundant and unnecessary, and may not survive Trump administration scrutiny, this report is packed with exhaustive research and valuable references and insights.]
The U.S. Department of the Treasury’s (Treasury) Federal Insurance Office (FIO) today released its Report on Personal Auto Insurance Markets and Technological Change.
The report is part of Treasury’s ongoing efforts to assess costs facing U.S. consumers. Personal auto insurance is significant for the national economy and consumers’ financial stability. Most Americans rely on private automobiles for transportation, particularly to get to their places of employment. With one exception, all states and the District of Columbia require vehicle owners to maintain personal liability auto insurance. Personal auto insurance premiums were about 35.8 percent of the entire U.S. property and casualty insurance market in 2023, or about $318 billion.
For more information on FIO, see About FIO.
Where Homeowners Rates Are Rising—and Who Is Raising Them Most
According to a new analysis of homeowners insurance rates, some Midwest states saw the biggest jumps in premiums last year—and American Family Insurance topped a list of 10 insurers ranked by average rate change.
The analysis published by S&P Global Market Intelligence this week is based on homeowners rate filings approved through Dec. 27, 2024—so not quite the whole year last year.
According to S&P GMI, the calculated weighted national average effective rate increase for homeowners insurance was 10.4 percent last year through late December. In 2023, the comparable figure was 12.7 percent, putting the two-year average increase at roughly 24 percent. (Source: “U.S. homeowners rates rise by double digits for 2nd straight year in 2024,” published Jan. 21, 2025 by S&P GMI)
Chart shows information for S&P Global Market Intelligence analysis with carriers ranked by size of 2024 average rate change (largest first) The state for which S&P GMI calculated the biggest effective rate increases for 2024 was Nebraska with 22.7 percent. In total, 33 states had double-digit calculated effective rate increases last year, with rates in Montana, Iowa, Minnesota, Utah and Washington also rising more than 20 percent by S&P GMI’s calculations.
Minnesota and Iowa were also among the states with the highest direct loss ratios in 2023 (including defense costs), although Hawaii, Kentucky and Arkansas were worse.
On the other end of the spectrum, Florida had the lowest—at 1.0 percent—but the text of the report notes that Florida’s calculation does not include any changes by Citizens Property Insurance Corp., the state-backed insurer of last resort.
Commentary/Opinion
Root's broken promise
On August 6, 2020, Root Insurance announced its commitment to “drop the score” by eliminating credit scores from its car insurance pricing by 2025.
In a post titled “We’re Dropping Credit Score From Car Insurance Pricing by 2025. Here’s Why,“ Root highlighted its mission to make car insurance fairer by basing rates on actual driving behavior, unlike traditional insurers. Root emphasized that relying on credit scores disproportionately harms individuals who have faced systemic discrimination, perpetuating inherent bias and systemic inequities.
“We’re announcing our commitment to removing credit scoring from our pricing model,” it wrote.
Recent filings in Nevada and North Carolina reveal that Root continues to incorporate credit scores into its pricing model, contradicting its earlier commitment to eliminate credit scoring by 2025.
Climate/Resilience/Sustainability
Global insured losses from natural catastrophes nearly 30% above average in 2024
Natural catastrophes caused global insured losses of $154 billion in 2024, a number that’s 27% above the 10-year average, according to a new report from Gallagher Re.
The report estimates that natural perils had a total direct economic cost of $417 billion in 2024. Private and public insurance entities covered 37% of that total, with the United States alone accounting for $117 billion in insured losses.
Between 2014 and 2023, annual global insured losses averaged $121 billion, but between 2017 and 2024, the average was $146 billion. The report suggests this indicates a new normal, with global insured losses of about $150 billion per year.
In an interview with PropertyCasualty360, Steve Bowen, chief science officer at Gallagher Re, said climate change is a big factor in the uptick. According to multiple global weather and climate agencies, 2024 was the warmest year on record since 1850 and potentially the warmest year in the last 125,000.
“2024 was another very active year,” he said. “We’re seeing more and more of these high-impact events, and
Announcements
EagleView Launches New Property Data Ecosystem
Now customers across property finance, real estate, insurance, roofing, solar, infrastructure management and more can access an unrivaled offering of property asset intelligence to make better business decisions.
EagleView, a leading provider of aerial imagery, announces the launch of its new property data ecosystem. The ecosystem has over 60 petabytes of asset data derived from high-definition aerial imagery. EagleView’s property data ecosystem includes roof measurements and attributes like property and roof condition, structure identification, and solar suitability information at a parcel level. The data is extracted using artificial intelligence.
The property data ecosystem is further augmented by critical alliances with strategic analytical providers who broaden the depth, scope, and utility of the data extracted from EagleView’s high-resolution imagery. This superior asset intelligence can then be accessed by customers directly via the provider’s API integration into their proprietary systems, workflows, and decisioning models. EagleView property data can be tailored to best suit customers’ specific use cases.
“We have a significant data warehouse of accurate asset intelligence with data derived from 25 years of proprietary aerial image capture. In addition to leveraging our 3 billion images that cover more than 94% of the US population, we’ve formed best-in-class property data alliances to supplement and enhance our offering,” said EagleView’s CEO Piers Dormeyer. “Now is the right time to make this unrivaled property intelligence resource available to the market and let innovators scale the possibilities.”
InsurTech/M&A/Finance💰/Collaboration
itel and OneClick Code Partner to Drive New Innovations for Roofing Claims | Roofing Contractor
Data firm itel partners with OneClick Code to integrate building code data into claims solutions, streamlining property assessments for key stakeholders.
Jacksonville, Fla-based data and technology company itel, which focuses on optimizing the property claims process, announced last week that it has partnered with OneClick Code, a data provider streamlining the building code-sourcing process, to facilitate fast and fair claims decisions.
OneClick Code’s building code and jurisdiction data will now be integrated into itel’s property claims solutions, including repairability analysis products. In a Jan. 8 news release, itel said the partnership enhances its repairability reports by including critical building code details, providing “valuable context” for all parties in property claims.
Los Angeles Wildfires
LA Wildfires: The Tipping Point for the Insurance Industry?
Ben Franklin famously wrote, “an ounce of prevention is worth a pound of cure’ way back in 1735. His brilliance was also pioneering to prevent and fight fires some 300 years ago. So, what has changed in both fire prevention and insurance?
The LA fire response and insurance system is and will be deeply examined with prevention in the forefront for years ahead. It will be equally daunting to align all stakeholders; local and federal government, communities, fire fighters, insurers, regulators and others as part of the review and eventual rebuild. In the meantime, given the shocking destruction, a resounding chorus of how this happened and could have been prevented echoes a well-deserved call for scrutiny.
Given the enormously steep price paid to “cure”, the opportunity to invest in prevention is clear. And let’s not overlook the whole price tag in terms of; loss of life, environmental harm, long-term health effects on top of unimaginable economic devastation when reconciling total cost decisioning.
Prevention should encompass readiness at all levels from local neighborhoods to federal government. Innovation and technology must play a bigger role and be adequately funded and supported. But this is not the first large wildfire with loss of life and entire communities. And the LA fires are the most recent of numerous catastrophes over the last several years, each one seemingly out-pacing the last shocking event, underscoring a need for new solutions.
Aland Demers and Stephen Applebaum
California’s home insurance crisis is just beginning
Key points:
Thousands of homes have been lost in January’s wildfires, which will undoubtedly strain both private and public insurers and exacerbate the ongoing insurance crisis.
California’s state program — the FAIR Plan — faces so much exposure that it may need to be bailed out.
If existing insurance markets become too expensive or simply nonviable, other models may emerge, like community or parametric insurance, one expert said.
As Los Angeles-area residents displaced by fires return to their damaged or destroyed homes, they will face decisions and questions about rebuilding. But another fundamental issue — and a major unknown — is the future of home insurance in the region.
According to the official LA County recovery effort, over 15,000 structures have been destroyed so far, and First American puts the number even higher at 17,000 to 24,000 housing units. Officials said another 19,000 homes remain threatened — but that was before a new blaze, the Hughes fire, broke out Jan. 22 near Santa Clarita. That fire has already grown to more than 10,000 acres and is only 14% contained as of Thursday morning.
As Fire Victims Seek Legal Help, Experts Warn Of Red Flags - Law360 Pulse
As lawyers from across the nation descend upon Southern California to sign up those affected by the devastating wildfires, fire victims should not rush to hire an attorney, lest they also become victims of fraud or other predatory practices, the state bar and ethics-savvy attorneys warn.
Vulnerable fire victims, many of whom are struggling to find food, housing and some sense of normalcy, might be tempted to sign contracts with unscrupulous lawyers or even nonlawyers who illegally offer legal services.
California Wildfire Survivors Invited to New Series of Legal Information Sessions
Survivors of the Los Angeles wildfires are invited to a new series of information sessions to provide resources and information, answer questions about a wide range of legal options, and provide an update on active litigation to hold responsible parties accountable for the devastating and historic fires.
The meetings are the latest by attorneys in the Los Angeles office of Nachawati Law Group, which has deep experience representing individuals impacted by wildfires and other weather events, as well as complex and high-profile litigation across the U.S.
Residents impacted by the Palisades, Eaton, Hurst and other recent Los Angeles-area fires are invited to attend. Visit https://wildfiretrial.com/ or call 888-955-2254 for more details.
The meeting schedule includes:
Friday, January 24: Town Hall Meeting, 5 p.m. to 9 p.m. PST, at the Arcadia/Monrovia VFW Auxiliary Post 2070, 825 S Magnolia Ave. in Monrovia. Saturday, January 25: Town Hall, including smothered pork chop dinner, 5 p.m. to 9 p.m. PST, at the Arcadia/Monrovia VFW Auxiliary Post 2070, 825 S Magnolia Ave. in Monrovia.
In addition to experienced attorneys answering questions, the meetings will include special guest Lt. Col. Thomas De La Garza, U.S. Army (retired). De La Garza, a former Psychological Operations Officer who also served as Air Domain Chief in the NORAD & USNORTHCOM Joint Operations Center, will discuss victim trauma from the Eaton fire and the resilience of Americans to rebuild following tragedy.
Recommended Events
Downtown Hartford Welcomes Back the InsurTech Hartford Symposium: A Premier Event Connecting Global Insurance Innovators
The InsurTech Hartford Symposium is making its highly anticipated return to downtown Hartford bringing together tens of thousands of insurance professionals.
Event Dates:
- Monday, April 28, 2025: EmpowerHER and CT Captive Insurance Forum events
- Tuesday, April 29 - Wednesday, April 30, 2025: InsurTech Hartford Symposium
- Location: Connecticut Convention Center, Hartford, CT
For More Information and Registration: Visit
We are proud to continue to host this unparalleled opportunity to connect with industry leaders, explore groundbreaking innovations, and gain insights that will shape the future of insurance.”— Stacey Brown, President, InsurTech Hartford
The 2025 InsurTech Hartford Symposium (IHS) is set to make its highly anticipated return to downtown Hartford in April, bringing together tens of thousands of insurance professionals and innovators at a pivotal moment for the industry. Hosted at the Connecticut Convention Center, the event promises a dynamic blend of networking, innovation, and thought leadership.
Noted highlights for the show’s fifth year include: - Strategic Venue: Situated at the Connecticut Convention Center, the event offers unparalleled convenience, with proximity to the airport and Hartford’s vibrant downtown amenities. - Industry Hub: IHS provides access to over 20,000 insurance professionals within a one mile radius, fostering unparalleled networking opportunities.
EMEA
Element Insurtech Faces Insolvency, Impacting 400,000 Customers
The insolvency of Element highlights major risks within the insurtech sector as regulatory pressures mount on innovative insurance providers.
Element, once hailed as a promising player in the German insurtech sector, has declared insolvency following restrictions imposed by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). The decision to halt the sale of new policies proved financially debilitating, leading the company to file for bankruptcy. This situation casts doubt on the future of innovative insurance offerings within the industry.
The progressive insurtech had built its reputation on developing cutting-edge insurance products for major partners such as Volkswagen and Borussia Dortmund. Despite raising substantial capital of €150 million, Element struggled to maintain financial stability, exacerbated by BaFin's recent interventions.
Holocaust Remembrance Day
International Holocaust Remembrance Day is time for commemoration -- and action
Today, the world commemorates the 80th anniversary of the liberation of Auschwitz, perhaps the most notorious of Nazi concentration and extermination camps.
For many, Auschwitz is a symbol of the absolute horror of the Holocaust and attendant atrocities of World War II. By the time Soviet troops marched in to liberate 7,000 sick, injured, and malnourished prisoners, the Nazis had already murdered more than 1.1 million people in this camp alone. The victims — mostly Jews from across Europe, but also political opponents, prisoners of war, homosexuals and Roma — were killed in gas chambers or by systematic starvation, forced labor, disease and medical experiments.
In 2005, the United Nations General Assembly designated Jan. 27, the anniversary of the liberation of Auschwitz-Birkenau, as International Holocaust Remembrance Day, a time to remember all victims of Nazi persecution. This commemoration acknowledges what we have long known: that by preserving the memory of the Holocaust, we ensure that future generations are educated about the dangers and consequences of unchecked hatred.
This work has never been more important.
Lori Shepherd serves as executive director of the Tucson Jewish Museum & Holocaust Center