Legal System Abuse/Social Inflation
Americans' insurance rates are soaring and lawsuits play a significant role
Insurance premiums have been soaring for years, and it's not just because of inflation and natural disasters
San Diego supervisor slams CA’s insurance regulations: Government should not be an ‘insurance company’.
San Diego County supervisor Jim Desmond criticizes California’s insurance regulations implemented prior to the Los Angeles County wildfires on ‘The Bottom Line.’
Americans' home and auto insurance rates have been soaring for years, with inflation, mounting losses from natural disasters, and rising repair and construction costs all playing a role.
News
Collision Engineering Program launches nonprofit dedicated to collaboration and expansion
A nonprofit dedicated to creating a collaborative effort to address the collision repair technician shortage was launched today as the next step in growing the Collision Engineering Program (CEP).
In the fall of 2020, CEP was introduced by the Enterprise Mobility Foundation and Ranken Technical College as a pilot at four schools in the U.S. The program’s hybrid apprenticeship model was designed to help address the demand for highly skilled collision repair technicians. More than 100,000 job openings are expected through 2028.
A press release announcing the launch says the name of the nonprofit, Collision Engineering Career Alliance, reflects its goal — “to energize allies across the collision repair industry to help build a workforce that is highly skilled, prepared for the future of vehicles, and eager to build a lifelong, fulfilling career.”
Mary Mahoney, vice president of Enterprise Mobility, told Repairer Driven News that the collision repair industry has embraced CEP and it’s been proven over the last four years that the program works.
North Carolina auto insurance companies ask for 22% rate increase
North Carolina insurance companies have requested a statewide average increase of 22.6% in automobile insurance rates, according to the North Carolina Department of Insurance.
The request was made through the North Carolina Rate Bureau, which represents vehicle insurance companies, according to the release. The companies are requesting the rates take effect Oct. 1.
According to the release, the commissioner of insurance has 60 days to review the rate request to determine if it’s justified based on the data submitted. If the commissioner does not agree with the increase, he can negotiate a settlement or call for a hearing.
Climate/Resilience/Sustainability
Aon, Floodbase and Swiss Re Launch Parametric Storm Surge Solution to Bolster U.S. Hurricane Insurance Protection
Aon plc (NYSE: AON), a leading global professional services firm, today announced the launch of a new parametric insurance solution designed to address and mitigate losses from hurricane-related storm surge along the coast of the U.S.
Developed in collaboration with parametric flood expert Floodbase, and leading global commercial insurer, Swiss Re Corporate Solutions, the new product can help bridge protection gaps in traditional insurance policies, which may demand high deductibles or include significant exclusions in policy wordings for storm surge risk.
According to Aon’s 2025 Climate and Catastrophe Insight report, Hurricane Helene was the single most devastating natural catastrophe event of 2024, estimated to have caused approximately $75 billion in economic loss, mainly due to U.S. inland and coastal flooding. For insurers, damage from Hurricanes Helene and Milton resulted in approximately $37.5 billion of claims, including pay-outs from public insurance from the National Flood Insurance Program.
For some hurricane events, storm surge damage can account for more than a third of the total loss cost.
January sets 'surprising' heat record: EU monitor
Last month was the hottest January on record, Europe's climate monitor said Thursday, despite expectations that cooler La Nina conditions might quell a streak of record-breaking global temperatures.
The Copernicus Climate Change Service said January was 1.75C hotter than pre-industrial times, extending a persistent run of historic highs over 2023 and 2024, as human-caused greenhouse gas emissions heat the planet.
Climate scientists had expected this exceptional spell to subside after a warming El Nino event peaked in January 2024 and conditions gradually shifted to a cooling La Nina phase.
But the heat has lingered at record or near-record levels ever since, sparking debate among scientists about what other factors could be driving warming to the top end of expectations.
"This is what makes it a bit of a surprise... you're not seeing this cooling effect, or temporary brake at least, on the global temperature that we were expecting to see," Julien Nicolas, a climate scientist from Copernicus, told AFP.
Research
Collision Claims and Losses Continued Down Trend in Third Quarter Compared to 2023 - CollisionWeek
Quarterly collision claim counts were down for the sixth quarter in a row compared to the previous year.
The latest available Fast Track Monitoring system data from the Independent Statistical Service Inc. (ISS) showed that the decline in collision claims continued as claims on a quarterly basis were down for the sixth consecutive quarter compared to the previous year. Losses were also down on a quarterly basis compared to the same quarter last year for the fifth month in a row.
Collision coverage claims for the third quarter of 2024, at over 1.43 million, were down more than 143,000, or 9.1% compared to the third quarter of 2023. This is an improvement from the second quarter that had been down more than 150,000, or 9.4%, compared to the second quarter of 2023. However, the second and third quarter results mark a further softening in claims from the 6.3% decline in the first quarter of 2024.
Home insurance premiums to rise over the next 30 years – First Street Foundation
An average of 29.4% rise over the next 30 years is expected
Insurance premiums for US homeowners are projected to rise by an average of 29.4% over the next 30 years due to climate risks, with some areas facing much steeper increases, AM Best reported, citing First Street Foundation data.
According to the 12th National Risk Assessment Property Prices in Peril by the foundation, three of Florida’s largest metro areas could see premiums increase by 213% or more. The majority of the increase is attributed to correcting the underpricing of insurance premiums, while the remaining 11% could result from growing climate risks.
The report also noted that property insurance costs have already begun to increase rapidly. Jeremy Porter, head of climate implications at First Street Foundation, noted that homeowners and specialized insurance premiums have risen 66% on average since 2017, outpacing home price appreciation.
Homeowners insurance premiums, which historically accounted for 7% to 8% of mortgage costs, climbed to 23% last year. Porter indicated that this percentage is likely to continue rising until rates reflect actuarial soundness
InsurTech/M&A/Finance💰/Collaboration
Bosch Acquires Roadside Protect - CollisionWeek
Acquisition expands roadside assistance presence in North America.
Bosch Service Solutions has acquired Roadside Protect, Inc., a U.S.-based provider of towing and roadside administration services. The acquisition, finalized on January 31, expands Bosch’s presence in the North American roadside assistance market by adding access to Roadside Protect’s network of more than 12,000 towing partners in the United States and Canada. The purchase price was not disclosed.
Roadside Protect, founded in 2002 and headquartered in Itasca, Illinois, provides services to automotive manufacturers, fleet operators, insurers, and aftermarket clients. The company offers breakdown support, recall management, and claims processing for vehicles ranging from passenger cars to heavy-duty trucks.
“The acquisition is a strategic component for further expanding the services we offer in the North American market,” said Henning von Boxberg, president of Bosch Service Solutions. “Roadside Protect operates a digital platform through which it manages its partner network of more than 12,000 towing companies in the U.S. and Canada. With this acquisition, we are combining our global customer network and our expertise in breakdown service with the North American towing industry.”
KKR to up direct stakes in trio of companies including USI as Chubb co-invests
KKR is increasing its direct stakes in USI Insurance Services, 1-800 Contacts, and Heartland Dental by approximately $1.1 billion, with Chubb co-investing an additional $1.0 billion.
KKR's CFO highlighted that this investment will enhance their Strategic Holdings segment, which currently owns about 20% of KKR's core private equity business.
The firm believes these investments will significantly contribute to long-term earnings growth. KKR previously acquired USI in 2017 and recently became its largest shareholder after a $1 billion equity investment in September 2023.
Insurtech company Techficient offers a new life insurance platform that delivers game-changing results
The Techficient Dynamic Platform has revolutionized the way life insurance is issued. By leveraging advanced technology, it guides users through a straightforward protection process, yielding impressive results. The platform utilizes predictive data and modern underwriting to significantly increase placed business, making the process easier for everyone involved—clients, agents, agencies, and carriers.
"This is a process we can take pride in, one that will foster growth in our industry. The platform consistently delivers better outcomes. Clients receive accurate quotes, and policies are issued quickly as they applied. Agents, agencies, and carriers can place more business with less effort," stated Todd Ruplinger, CEO of Techficient.
Dynamic employs predictive data and a pre-underwriting engine to recommend the best product fit, rather than simply quoting based on price. By providing transparent data directly to agents and advisors, Dynamic has increased paid business while reducing cycle time. The Dynamic Platform is a white-label solution that can be fully customized to meet each distributor's unique requirements, including suitability, carrier and product customizations, and advanced case creation.
Payments
[Ed. Note: Sponsored Content] 12 Insurance and Payments Trends Shaping 2025 | One Inc
Insurers will continue to modernize their operations in 2025. To thrive, industry leaders need to be aware of these 12 insurance and payments trends.
Despite multiple disruptions and uncertainties already this year, insurance carriers’ profound modernization efforts show no signs of slowing down in 2025 — driven by emerging industry technologies and evolving customer expectations.
To help position your organization for success, be ready for these 12 trends in the next 12 months.
Highlights
The blockchain in insurance market is expected to grow 60% in 2025, reaching $3.11 billion. -Digital wallet transactions are anticipated to increase 77% by 2028, topping $16 trillion.
Written by The One Inc Content Team
Los Angeles Wildfires
USAA estimates $1.8bn of losses from LA wildfires
Insurer USAA revealed today that it has received more than 3,500 claims related to the California wildfires, with 86% of claims receiving initial payments of more than $1 billion, with the company projecting that its members’ wildfire losses will reach roughly $1.8 billion.
It’s important to note that USAA is perhaps the most consistent of catastrophe bond sponsors, at least of any primary company within the cat bond market.
We previously reported that the mark-to-market impact to catastrophe bonds from the Los Angeles, California wildfires had risen, as a number of cat bond names saw further mark-downs on pricing sheets last Friday, while some aggregate cat bonds saw negative movements that had not done so before.