News
Lawsuits Surge Against Allstate Insurance
Allstate was hit with eight class actions, which alleged the company and its subsidiary Arity LLC surveilled consumers' driving behavior through software embedded into third-party apps, and used it to sell the data and to raise insurance premiums.
The Texas attorney general accused Allstate Insurance Co. of surveilling consumers on their mobile devices, selling the data and ultimately using that information to raise insurance rates.
Now, at least eight class actions have been filed against Allstate.
By Emily Cousins, Litigation Reporter
Car Insurance Will Keep Rising - Industry - Auto Dealer Today
Car insurance rates are expected to continue to rise this year, though at a slower pace.
Rates climbed 15% across the country last year and have jumped a cumulative 42% since 2022, according to insurance comparison-shopping website Insurify, which forecasts a 5% rate increase this year to a national average full-coverage rate of $2,435 by year-end.
Some states will fare worse, New York and Florida experiencing double that, Georgia and Nevada with 8% increases, and Delaware a 7% jump.
Three lucky states should actually see rate decreases, Insurify predicts: Hawaii, New Hampshire and Vermont.
The rate increases, which have moved many consumers to shop around for better terms, are the result of rising car repair costs, inflation, and growing weather risks, such as hurricane flooding and wildfires, Insurify said.
It found that average insurance premiums tapered off in 21 states in the last half of 2024, but other states’ consumers faced steep increases.
For instance, those in Minnesota had rates on full-coverage policies rise 58% to an average annual premium of $2,524, and Maryland, which has the most expensive rates, saw a 53% jump to an average of $4,060.
Climate/Resilience/Sustainability
Insurers Must Evolve to Survive Climate Crisis | Insurance Thought Leadership
As climate risks intensify, insurers must evolve from damage compensation to prevention or face industry-wide collapse.
The world today is burning, drowning and crumbling in ways that no one can ignore. The tragic scenes in Los Angeles in January were just the latest proof. As temperatures rise and weather patterns grow more violent, the question is no longer whether disaster will strike but when – and how hard.
Insurance losses from natural catastrophes reached $350 billion last year. And in this new age of climate uncertainty, insurers find themselves at a crossroads: adapt or collapse. The storms will come, but human and financial losses need not rise with the seas.
In California, wildfires now rage with such frequency and ferocity that several major insurance companies have simply quit. In less than a year, from summer 2023 to early 2024, eight insurers stopped writing new home policies in the state, claiming that wildfire risks made business untenable.
Flood-prone areas are facing the same grim exodus of insurers, leaving thousands uninsured and vulnerable. This is the so-called "protection gap" – an inoffensive term that in reality means homes left unprotected, lives potentially left in ruins.
Pierre du Rostu , CEO, AXA Digital Commercial Platform.
Commentary/Opinion
2025: The Year of the Connected Vehicle Paradigm Shift
OEMs must seize this opportunity to stay competitive, avoid being left behind and deliver the connected experiences their customers expect in a modern vehicle.
For years, automotive original equipment manufacturers (OEMs) have grappled with the challenges of delivering truly connected vehicle experiences. The hardware has been available and the potential has been clear, but the ecosystem that enables seamless, valuable in-car services has remained elusive. However, 2025 promises to be a transformative year. Predictions indicate that this will be the moment when at least one major OEM adopts a third-party framework to offer and monetize services at scale, ushering in a new era for the industry.
P&C INSURANCE CLAIMS: THE TIME HAS COME
For those of us who have worked in this industry for a decade and longer, when you honestly assess how claims handling has evolved over time, you would fairly conclude that while certain aspects have improved – some even impressively – the fundamental model, process, service and financial outcomes have essentially remained unchanged or marginally improved.
When comparing insurance cl
aim modernization to others in financial and consumer services, the shortcomings become even more obvious. Yet the environment in which claims occur and are resolved has changed significantly.
The reasons and underlying factors for this lack of breakthrough are many and complex and playing catch up in real time has not proven to be easy so far – but it is possible – and mandatory.
Aland Demers and Stephen Applebaum as published on InsurTech Consulting
Financial Results
CNA Financial posts US$21 million Q4 net income as pension costs weigh on results | Insurance Business UK
CNA Financial Corporation has reported a massive decrease in its quarter-to-quarter net income, in addition to an almost $300 million after-tax loss for the full year in its latest financial results.
The group reported net income of $21 million, or $0.07 per share, for the fourth quarter of 2024, compared to $367 million, or $1.35 per share, in the prior-year quarter.
CNA attributed the decrease to a $290 million after-tax loss from a previously announced pension settlement transaction.
Besides the pension transaction, the company also reported net investment losses of $31 million for the quarter, compared to net investment gains of $5 million in the same period last year.
CEO and president Douglas M. Worman (pictured) also touted the performance, noting that both AM Best and Moody’s revised their respective outlooks on CNA’s financial strength and debt ratings from stable to positive.
AIG posts higher Q4 earnings
American International Group reported fourth-quarter adjusted net income of $1.30 per diluted share, up 2% from a year earlier and beating estimates by 6 cents.
For the full year, adjusted net income was $4.95 per share, reflecting a 12% increase year over year, or 28% on a comparable basis. Underwriting income was nearly $2 billion with a combined ratio below 92% for the third consecutive year and an adjusted accident year combined ratio below 89%.
Meanwhile, full-year net premiums written increased by 6% on a comparable basis. Its global commercial division saw net premiums written rise by 7%, with an 88% retention rate and $4.5 billion in new business.
“2024 was an outstanding year of accomplishments for AIG in which we successfully executed multiple complex strategic and operational priorities,” said Peter Zaffino, AIG chairman and chief executive officer.
InsurTech/M&A/Finance💰/Collaboration
Amerisure Modernizes Policy Administration, Underwriting, and Billing Management Capabilities with Guidewire to Increase Business Agility | Business Wire
Amerisure Insurance (Amerisure), a leading provider of commercial property and casualty insurance solutions for U.S.-based construction, manufacturing and healthcare businesses, and Guidewire (NYSE: GWRE) announced that Amerisure successfully deployed Guidewire PolicyCenter and Guidewire BillingCenter as its new systems for policy administration, underwriting, and billing management.
“We are thrilled to announce the successful Cloud implementation of Guidewire PolicyCenter and BillingCenter at Amerisure”
The company implemented the products on Guidewire Cloud simultaneously beginning with its Workers’ Compensation line of business in all of the regions where it operates. Amerisure is currently implementing other lines of business such as commercial auto and loss sensitive (special risk). Guidewire PartnerConnect Consulting Global Premier member PwC was the lead partner on the implementation project.
Amerisure migrated its on-premise installation of Guidewire ClaimCenter onto Guidewire Cloud in 2023. With the implementation of PolicyCenter and BillingCenter on Guidewire Cloud, the company is now a full Guidewire InsuranceSuite customer in production on Guidewire Cloud.
“Thanks to the incredible partnership our team had working with Guidewire and PwC, we were able to go into production on time and on budget, and user feedback has been encouraging. PolicyCenter and BillingCenter are enabling us to modernize our policy administration, underwriting, and billing capabilities to achieve things we wouldn’t have been able to on our previous systems, such as account-level viewing, easy access to detailed policy information by all entities in the organization, and new integrations to streamline processes,” said Amerisure Vice President of Product Management Mark Fowler.
“We’re also now able to see the full quote-issue-bind cycle for new policies in real time. Compared to our previous policy and billing systems, the time it took our staff to learn to operate PolicyCenter and BillingCenter decreased substantially. The intuitive platform allowed the team to be up and running in weeks vs months.”
High Definition Vehicle Insurance Announces $40 Million Fundraise, Expanded Reinsurance Capacity and New Leadership Roles
High Definition Vehicle Insurance (HDVI), a technology-driven commercial auto insurance provider, has secured $40 million in growth capital, bringing its total funding to over $87 million. The round, co-led by existing investors 8VC, Autotech Ventures, Munich Re Ventures, and Weatherford Capital, will support the enhancement of HDVI's telematics-driven products, expanded coverage, and improved tools for insurance agents as the company scales nationwide.
"HDVI's innovative use of real-time telematics is reshaping commercial trucking insurance," said Will Weatherford, managing partner at Weatherford Capital. "This latest fundraise underscores the confidence we have in HDVI's leadership and ability to deliver profitable growth."
Following this funding round, Alexei Andreev of Autotech Ventures and Jake Medwell of 8VC will join HDVI's Board of Directors, alongside existing members Jacqueline LeSage of Munich Re Ventures, Will Weatherford, and HDVI's Reid Spitz and Chuck Wallace.
HDVI also announced key leadership transitions. After seven successful years as CEO, co-founder Chuck Wallace will become a strategic advisor and continue supporting the company's long-term vision. Co-founder Reid Spitz, appointed president in January 2024 to prepare for this shift, will now serve as CEO and guide HDVI's next phase of profitable growth.
Duck Creek Technologies Partners with Worldpay to Enhance Payments Solutions | Insurance Innovation Reporter
The strategic partnership aims to deliver future-proof, global payments capabilities for insurance carriers accessible through the Duck Creek platform.
Duck Creek Technologies (Boston) has announced that it has entered into a strategic partnership with Worldpay (Cincinnati), a global provider of payments technology solutions. Worldpay’s global payments capabilities embedded in Duck Creek Payments, provide carriers with a seamless, end-to-end payment management platform tailored specifically to the insurance industry, a Duck Creek statement says.
The vendor adds that addition of Worldpay’s payments capabilities fortifies Duck Creek’s ability to serve carriers worldwide with its payments platform while ensuring scalability and future-proofing through continued technology investments.
“Selecting the right payments processing partner is pivotal to delivering an exceptional experience for our customers,” comments Allan Lacoste, Chief Payments Officer, Duck Creek Technologies,.
“Worldpay aligns perfectly with our mission to provide insurance carriers with secure, efficient, and flexible payment solutions. Through this partnership, Duck Creek Payments becomes even more robust, eliminating the need for costly, bespoke integrations while embedding industry-leading payment processing capabilities directly into Duck Creek’s core technology.”
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
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- 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
Research
Conning Investment Risk Survey: U.S. Insurers Eye Greater Private Market Exposure; Optimism Cools on Markets, Adding to Overall Risk
Inflation Concerns Fade as Domestic Political Environment is Top Portfolio Concern
While U.S. life and P&C insurers are willing to assume increased investment risk for the third consecutive year, their market optimism is tempered as inflation is replaced by concerns about the domestic political environment, portfolio yield, market volatility, geopolitical events, and the impact of artificial intelligence.
Indeed, their investment plans for 2025 reflect more restraint given greater uncertainty, according to the annual Conning Insurance Investment Risk survey, conducted in late November 2024 and completed by 310 investment decision-makers in the U.S. insurance industry.
“A greater level of uncertainty has likely led to greater restraint in insurers’ investment planning,” said Matt Reilly, managing director and head of Conning’s Insurance Solutions group and author of the survey report. “However, insurers still expect to increase investment risk, expanding beyond their more traditional fixed income portfolio holdings to include greater exposure to private assets, in order to achieve yield and diversification.”
People
The Software Report Names Denise Garth a Top 50 Women Leader in Software for 2024 | Business Wire
Majesco, a global leader of cloud intelligent insurance solutions for insurance business transformation, is excited to announce that Denise Garth, Chief Strategy Officer at Majesco, has been recognized as one of The Top 50 Women Leaders in Software of 2024 by the Software Report.
This prestigious award highlights Denise’s outstanding leadership, vision, and contributions to the software industry, particularly in driving innovation and transformation within the insurance sector.