Climate/Resilience/Sustainability
Climate risk and insurance: PwC
Building climate resilience: Insurers can guide the way
The fundamental purpose of insurance is to provide protection and transfer risk. But this is proving increasingly difficult in a time of more widespread, acute and severe weather events. Solutions to mitigate climate risk are going to be expensive and no single group — insurers included — has the wherewithal to address it alone.
But insurers can signal the direction of travel. They have more experience analyzing and pricing climate risk than anyone. By actively sharing their insights and working with key stakeholders, they can contribute to a comprehensive climate risk mitigation roadmap and the actions that make it real. Insurers can lead the way, help identify needed interventions and prevent any one group — including carriers and their customers — from bearing the full brunt of the cost to build a more climate resilient society.
To help address this growing climate resilience crisis, carriers need a comprehensive understanding of the physical, investment, liability and transition risks creating the shocks for which they and society need to prepare.
- Property and physical risk
- Investment risk
- Legal risk
- Reputational risk
- Regulatory risk
- Transition risk
- The risk of inaction
FEMA to Borrow $2B to Pay Flood Claims After Hurricanes Helene and Milton
The Federal Emergency Management Agency said it needs to borrow $2 billion from the U.S. Treasury to cover claims from National Flood Insurance Program policyholders.
FEMA, administrator of NFIP, said it expects to pay out more than $10 billion in flood claims related to hurricanes Helene and Milton in 2024 – as well as claims for other flooding events last year.
Commentary/Opinion
Insurance Advisory Firms Embrace Data-Driven Insights, Self-Service, and Unbiased Expertise in 2025
As M&A drives evolution, firms are leveraging advanced technologies, developing comprehensive data platforms, and maintaining their role as unbiased experts to provide more valuable and accessible insights to their clients in the rapidly transforming insurance sector.
The insurance advisory and analyst landscape is undergoing significant transformation in 2025, with firms focusing on three major trends: data-driven insights, self-service platforms, and unbiased expertise. These changes are occurring against a backdrop of industry consolidation and technological advancement.
Tom Benton is a recognized thought leader in the insurance industry, with over 20 years of experience driving IT strategy and innovation.**
What Trump's Tariffs Mean for Insurance | Insurance Thought Leadership
Also, why didn't Flo, Mayhem and their animal equivalents show up during the Super Bowl? And the arrival of "digital workers."
After the chaotic first three weeks of the new Trump administration, it's impossible to know what the long-term effects will be of the tariffs, the rescinded tariffs, the threatened tariffs and the president's broad endorsement of "tariff" as "the most beautiful word in the English language." But some of the effects on the insurance industry are becoming clear, especially on auto insurance — and they aren't good.
This week, I'll tell you what I can about what happens next. I'll also take a look at the absence of insurance ads on the Super Bowl broadcast, which probably changes nothing but which I choose to take as a possible sign of a new seriousness by insurers to educate consumers on their needs for coverage and as a shift away from just pounding brand names into people's heads. Finally, I'll dig into a smart piece that provides a way to think about implementing generative AI, as "digital workers."
Los Angeles Wildfires
Claims paid for California wildfires reach $6.9bn: Commissioner Lara
As of February 5, 2025, $6.94 billion has been paid out to insurance policyholders in Southern California for residential and commercial claims related to the January wildfires.
This figure was provided in the latest update from California Insurance Commissioner Ricardo Lara’s public consumer claims tracking system.
These payouts are helping individuals secure housing and replace personal belongings immediately. The total amount will continue to rise as more people initiate the claims process, which includes rebuilding and debris removal.
Additionally, $73 million has been paid out for auto insurance claims linked to the fires.
More than 2 million CA acres face 'high' or 'very high' fire danger -
Reflecting intensifying wildfires and updated science, new state maps designate more than 2.3 million acres of local land in California as facing “high” or “very high” danger of wildfires.
In the wake of devastating fires in Los Angeles County, the Fire Marshal’s office is gradually releasing updated maps for local jurisdictions after Gov. Gavin Newsom issued an executive order last week. The previous statewide maps were released from 2007 through 2011.
In those jurisdictions, city or county fire departments are first responders and enforce fire safety rules. The areas designated as “high” or “very high” would be subject to the strongest state standards for wildfire-resilient buildings.
Fire hazards in California have grown, in part, because of climate-driven droughts and a longer, more dangerous wildfire season.
“We are living in a new reality of extremes. Believe the science – and your own damn eyes: Mother Nature is changing the way we live and we must continue adapting to those changes,” Newsom said in a press release announcing the executive order. “California’s resilience means we will keep updating our standards in the most fire-prone areas.”
InsurTech/M&A/Finance💰/Collaboration
Global InsurTech Report Q4 2024 | GallagherRe
Key findings for Q4
- Global InsurTech funding dropped 5.6% YoY, from USD4.51 billion in 2023 to USD4.25 billion in 2024
- Early-stage funding and average deal sizes were bright spots for 2024
- Global InsurTech funding halved QoQ, from USD1.38 billion in Q3'24 to USD688.24 million in Q4 2024
- AI centered InsurTechs accounted for 42.3% of deals in Q4'24
- Half of Q4'24 InsurTech deals involved InsurTechs with a focus on claims
This final report in the series will examine 'Claims', a process which begins with the first notice of loss, through validation, adjustments, approval, and then all the way to settlement and the transfer of funds to the customer. It is here that insurers fulfil their obligation to their clients in the event of an actual loss and given how fundamental claims are to the industry, this is an area where a (re)insurer can really demonstrate their worth.
Getting the claims and settlement processes right can maximize the investments that (re)insurers are making elsewhere and create best-in-class customer engagement experiences. The benefits of this are not only felt externally, either; the pricing and underwriting process can also benefit from a clear and comprehensive view of claim and loss data, for example, to aid with capital allocation and forecasting.
As per previous reports, we also spotlight key InsurTech companies, engage with industry thought leaders, and provide detailed insights into the latest InsurTech investment trends.
Strategic consolidation to drive re/insurance M&A activity in 2025, poll suggests - Reinsurance News
After a challenging period for mergers and acquisitions (M&A) in the global re/insurance sector, industry analysts have suggested that 2025 could be the year the market turns, fuelled primarily by strategic consolidation, according to a recent Reinsurance News poll.
The poll revealed that 49% of the hundreds of respondents believe strategic consolidation will be the primary driver of reinsurance M&A activity in 2025, followed by private equity interest (20%).
Digital transformation was cited by 18% of participants, while regulatory changes took last place, at just 13%.
This prediction aligns with forecasts from Fitch analysts late last year, who suggested that a softening market and dwindling organic growth opportunities would spur reinsurance M&A activity, as companies with accumulated capital may seek to acquire struggling re/insurers.
Claims
P&C Insurance Claims: The Time Has Come
by Alan Demers and Stephen Applebaum
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 claim 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.
AI in Insurance
What Does AI Say About AI in Insurance? | Insurance Thought Leadership
"Generative AI isn’t just regurgitating pre-programmed responses anymore; it’s starting to think. Sort of....It’s not perfect, but it’s getting there—fast."
My DeepSeek prompt:
You're a management consultant who writes in the clean, edgy style of Hunter S. Thompson. Write a 500-word essay on generative AI in property and casualty insurance. Consider where we are in the context of OpenAI's five phases of AI: chat, reasoning, agent, innovation, organizations. Include specific use cases from insurance companies such as Progressive and Allstate.
Consider the $450 billion in AI infrastructure investment made by Big Tech in 2025 alone. Consider the human and corporate reluctance to use AI to replace people, but also consider that humans hate jobs staring at screens all day moving tokens around.
Recommended Events
ClimateTech Connect, April 15-16, 2025
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
Webinars/Podcasts/Interviews
Introducing 'Connected: The Podcast' Insurance and InsurTech News and Commentary --- Sponsored by Pulse Podcasts
Co-curated by Alan Demers and Stephen Applebaum, The Connected Podcast is a condensed audio version of the day's ‘Connected' newsletter, a daily scan of all the happenings in the world of Insurance & InsurTech News.
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Presidents Day 2025
Presidents' Day
Presidents' Day, officially Washington's Birthday at the federal governmental level, is a holiday in the United States celebrated on the third Monday of February.
It is often celebrated to honor all those who served as presidents of the United States and, since 1879, has been the federal holiday honoring Founding Father George Washington, who led the Continental Army to victory in the American Revolutionary War, presided at the Constitutional Convention of 1787, and served as the first U.S. president from 1789 to 1797