Commentary/Opinion
Trust, Personalization and Transparency: Foundational for Premium Accuracy
The insurance industry is at a crossroads. Brewing negative consumer sentiment toward insurance affordability and premium fairness is spilling over as profitability struggles threaten markets. As the industry takes needed action, the approach itself comes into question. Insurers find it difficult to inform and educate a customer base that views pricing as opaque and overly complicated. All of this begs the question; can premium adequacy and trustworthiness co-exist?
Alan Demers and Stephen Applebaum
News
Florida's legislators aim for major insurance overhaul
The state is scrambling to keep Citizens Insurance solvent, and fix problems before it becomes another California for carriers
As Florida’s 2025 legislative session unfolds, insurance remains one of the most pressing issues, with lawmakers proposing multiple bills aimed at stabilizing homeowners' insurance premiums and reconsidering the state’s no-fault auto insurance system. The debate comes amid rising costs for both property and auto insurance, as well as growing concerns over the financial stability of state-backed Citizens Property Insurance.
Senator Blaise Ingoglia, a key player in insurance policy discussions, has introduced several proposals to address market instability and hold insurance companies accountable. One of his latest measures, SB 1740, would require insurers seeking approval to operate in Florida to maintain an additional $35 million in reserves beyond what is needed to cover policyholder obligations.
The bill also includes new regulations barring executives and attorneys of failed insurance companies from taking leadership roles in another insurer if they were involved within five years before the company became insolvent.
In a bid to encourage homeowners to invest in hurricane and flood mitigation measures, Ingoglia has proposed SJR 1190, which would allow the Legislature to freeze property taxes for homeowners who elevate their homes or take other steps to make them more resilient. If approved by two-thirds of the Legislature, the measure would go before voters in 2026. Another bill, SB 1192, would ensure that these tax benefits remain in place for 20 years.
Triple-I: Florida’s P/C Market Stabilizing Due to Legislative Reforms that Curbed Legal System Abuse Practices of Billboard Attorneys
Florida’s legislative reforms to address legal system abuse and claim fraud are stabilizing the state’s property/casualty insurance market, according to a new Issues Brief published by the Insurance Information Institute (Triple-I), an affiliate of The Institutes.
Claims-related litigation has significantly declined in the Sunshine State over the past two years, and home insurance average premiums are nearly flat, with 40% of home insurers requesting rate decreases from the state’s insurance regulator in 2024. Eleven new property insurers have entered the market and six of the top 10 national insurers writing residential policies in Florida grew their market share in 2024, Triple-I’s Issues Brief noted.
“While it took some time to get through the massive amounts of litigation fueled by billboard attorneys just before reform was passed, citizens of the Sunshine State are now clearly seeing the benefits of a more stable and affordable insurance marketplace,” said Triple-I CEO Sean Kevelighan. “With such visible progress being made it is important that the reforms remain, so Floridians no longer fall victim to the legal system abuse of the past such as assignment of benefits claim fraud schemes.”
Vortex Expands Supplemental Hurricane Insurance to Cover All Storm Categories
Vortex Insurance, a leader in parametric weather insurance, has expanded its innovative hurricane insurance program to provide supplemental coverage for all hurricane categories (1-5). Businesses along the Gulf and Atlantic coasts now have a powerfully enhanced tool to help protect themselves from financial losses due to hurricanes—with fast, automatic payouts and zero deductibles.
Unlike traditional property insurance, Vortex Supplemental Hurricane Insurance pays out quickly—no claims paperwork, no adjusters, no red tape. Businesses simply select their coverage area (a single 30-mile radius or double 30/60-mile radii around their location), and if the recorded path of a hurricane enters that zone, the policy triggers a payout.
"This expansion brings real peace of mind to businesses in hurricane-prone areas," said Andy Klaus, Vice President of Business Development at Vortex. "Our insurance can be used to reduce increased deductibles, or for flood, storm surge, wind, business interruption—any financial loss. With real-time data, we can get checks in the mail in under 30 days—exactly when businesses need support the most."
Predict & Prevent
'Every Carrier Is a CAT Carrier Now' | Insurance Thought Leadership
Let’s start with the Southern California wildfires, as long as Nearmap was so involved in helping carriers respond and as long as the disaster is so on point for our Predict & Prevent focus this month. What did you see?
Interview with Dave Tobias, GM Insurance, Nearmap conducted by Insurance THought Leadership
Interestingly, we had flown over the LA area, including the Palisades, on Jan. 1, just before the fires started on the seventh. This is part of our normal cadence, as we capture new imagery three to four times a year depending on the region.
We had planes in the air within five hours of the fire starting. We maintain a nearly 24/7 operations team outside Washington DC that monitors events, weather, and plane locations, and we were able to start streaming this imagery to insurance companies within hours after these flights.
We run AI analysis on every flight, and in catastrophes we conduct damage detection via AI. For wildfires, we're assessing total versus partial losses, though these fires typically resulted in total losses. While a hurricane typically moves through an area and is done, this fire kept spreading, and areas that were initially safe were later destroyed.
I happened to be in Hartford during the fires, meeting with some of our largest insurance customers. I witnessed firsthand how they were using our data. One top-five carrier had integrated our imagery and AI analysis into their mapping system, using it to guide their call center in contacting insureds who were evacuated. The reps were often the first to inform people about whether their homes had survived. These insurers went to great lengths to locate their customers, even searching social media platforms like Facebook and TikTok to reach them.
Embedded Insurance
W. R. Berkley introduces Berkley Embedded Solutions
W. R. Berkley Corporation announced the formation of Berkley Embedded Solutions to deliver tailored insurance products and services to customers at the point of purchase.
This new business will bring together the best of modern technology, purpose-built digital-first insurance products, and complementary services with Berkley’s strong underwriting culture and reach. Stephanie Lloyd has been named president of the new business, effective immediately.
Lloyd, previously CEO of LiveWell by Zurich and prior to that president of Toggle Insurance, joins Berkley with 20 years of experience in the property and casualty insurance business, with leadership roles that spanned underwriting, product development, and distribution.
Financial Results
Record Total Loss Frequency Pushes Copart to Q2 2025 Growth - Autobody News
The auto salvage giant saw strong earnings as more cars were totaled due to natural disasters and vehicle repair costs.
Copart CEO Jeff Liaw expects the underlying trend of insurance-totaled cars to continue. During its recent quarterly earnings call, auto salvage auction company Copart (NASDAQ: CPRT) announced strong quarterly sales results after setting new supply records. The company also noted historic total loss frequency, a key driver of its business performance.
During the call, executives for the Texas-based auctioneer – which reports based on a year that ends July 31 -- highlighted the 8% growth in global volume in Q2 2025 compared to the same period in 2024.
CEO Jeff Liaw noted that catastrophic events from late last year, including hurricanes Milton and Helene, contributed to the increased number of totaled vehicles. He said he expects the underlying trend of insurance-totaled cars to continue, especially in the aftermath of the Los Angeles wildfires.
"The full-year trend of 22.2% represents an all-time annual high, and the total loss frequency drivers certainly continue unabated," Liaw said during the call.
The increased supply contributed to impressive financial results, with global revenue increasing by 14% to nearly $1.2 billion. The company's U.S. insurance unit volume grew by approximately 9% year-over-year.
InsurTech/M&A/Finance💰/Collaboration
DXC and ServiceNow to Drive AI-powered Innovation for the Insurance Industry
DXC Technology (NYSE: DXC), a leading Fortune 500 global technology services provider, today announced new offerings with ServiceNow (NYSE: NOW), the AI platform for business transformation, to modernize the insurance industry.
As an Elite partner, DXC is combining its industry-leading solutions and ServiceNow's AI capabilities and workflows to introduce DXC Assure BPM (Business Process Management) powered by ServiceNow.
Today's insurers are pressured to accelerate growth and innovation, streamline operations, and provide faster, more reliable services to policyholders, but are often constrained by processes and workflows that are complex and highly manual. According to HFS Research, 45% of insurers are already investing in technology-driven alignment of their front, middle, and back offices.
DXC and ServiceNow are uniquely positioned to help insurers drive innovation for greater operational efficiency. Combining DXC's insurance expertise and scale with ServiceNow's single platform and data model, DXC Assure BPM powered by ServiceNow integrates AI, data and workflows to reduce process debt, enhance operational efficiency, and improve customer satisfaction. The solution applies across the entire policy lifecycle and is expected to help reduce up to 40% of operational costs typically spent on manual processing.
"We are committed to delivering exceptional value to our customers and accelerating business outcomes. Our expanded partnership with ServiceNow will combine our deep insurance expertise with ServiceNow's advanced AI workflow technology to drive speed, agility and operational transformation for insurers," said Ray August, President of Insurance Software and Business Process Services at DXC. "Together, we are shaping the future of the insurance industry."
Climate/Resilience/Sustainability
Secondary perils becoming primary concern for insurance market
Increasingly serious weather events driving industry to adopt tech, rethink risks, and get proactive
From the devastating wildfires sweeping through California to hurricanes intensifying in the Atlantic, extreme weather events are becoming more frequent, unpredictable, and severe. These primary events are often followed by secondary perils such as flooding, tornadoes, mudslides or landslides, as well as convective storms that can give rise to thunder, lightning, heavy rain, and hailstorms. These secondary perils are increasingly a primary consideration for the insurance industry, driving up costs, reshaping risk models, and straining capacity in ways not seen before.
“In general, carriers are paying more attention because, in the simplest terms, it’s starting to cost them a lot more,” says Jason Jones, SVP Risk Management at REInsurePro. “It’s important for all involved to understand the nature of secondary perils becoming more prevalent, and to know how to protect themselves.”
The role of technology
With the increasing number of secondary perils in places historically unfamiliar with them, initial structures may not be equipped to withstand them. Not only do these events impact at the time, but they have significant aftershocks as well, beyond the clean up. For example, California now has a burn scar from the fires that won’t allow as much water from the next flood, mudslide, or landslide to absorb into the ground as it usually would, and there aren’t as many natural barriers to protect structures either.
This article was produced in partnership with REInsurePro.
Severe Convective Storm Risks Reshape U.S. Property Insurance Market | Triple-I Blog
Severe convective storms (SCS) are emerging as a major driver of U.S. property insurance costs, with large hail events alone damaging nearly 600,000 homes in 2024, according to an analysis by CoreLogic.
SCS weather events, which include damaging hail, tornadoes, straight-line winds and derechos, are becoming a significant driver of insured natural disaster losses across the U.S. While hurricanes and wildfires often receive more attention, these intense storms are causing considerable damage, CoreLogic noted.
Scale of Current Damage
In 2024, damaging hail of two inches or greater affected 567,000 single- and multifamily homes across the contiguous U.S. The combined reconstruction cost value (RCV) of these properties is approximately $160 billion. Texas, Nebraska, Missouri, Oklahoma, and Kansas account for 72% of the homes at risk for damaging hail.
The pattern of these storms is shifting. While 2024 saw 133 days of damaging hail—above the 20-year average of 121 days—storm activity is evolving. Rather than extended periods of severe weather, there’s a trend toward more concentrated events, the report explained.
These localized storms can strain resources and claims processing systems, creating challenges for insurers and claims managers. On Sept. 24, a single event in Oklahoma City damaged 35,000 homes, making it the most impactful single hail event of 2024. A derecho that struck Downtown Houston last May caused more damage to “hurricane-proof” buildings than Hurricane Beryl in July, according to a recent study.
Property at Risk from SCS
Hailstorms pose a threat to 41 million homes at moderate or greater risk, representing a reconstruction cost value (RCV) of $13.4 trillion, according to CoreLogic’s risk score models. For tornadoes, 66 million homes are at risk, valued at $21 trillion RCV. Straight-line winds affect 53 million homes with an RCV of $18.6 trillion.
WTW warns of growing insurance protection gap
The insurance protection gap for natural catastrophes is estimated to reach 60% as 2024 becomes the first year to surpass 1.5 degrees Celsius, according to WTW’s Natural Catastrophe Review for the second half of 2024.
Natural catastrophes continued to place significant pressure on global insurance markets in 2024, with global insured losses exceeding $140 billion, marking the fifth consecutive year that insured damages topped $100 billion.
Total economic damages from these events exceeded $350 billion, underscoring the lack of resilience to climate-related risks. In addition, wildfires in Los Angeles have already caused insurance loss estimates in the region of $30 billion to $40 billion in the first few weeks of 2025.
Announcements
Liberty Mutual to Retire Safeco Brand in 2026
Liberty Mutual Insurance, the sixth-largest personal insurance provider in the U.S., will market and sell all of its personal lines products solely under the Liberty Mutual brand starting in 2026.Liberty Mutual Insurance, the sixth-largest personal insurance provider in the U.S., will market and sell all of its personal lines products solely under the Liberty Mutual brand starting in 2026.
Safeco Insurance, the company's brand within the independent agent channel, will retire as a brand. However, Safeco customers will keep their agent relationship and their policies will not be impacted other than the name change.
Liberty Mutual also sells directly to consumers online and through licensed sales representatives at call centers. The direct and independent agent channel product offerings will remain differentiated.
Independent insurance agents were notified of the change this week and will receive a series of communications about the next steps.
“This transition will allow us to fully harness the Liberty Mutual brand value for all of our customers, agents and partners, across all distribution channels," said Tyler Asher, Liberty Mutual chief distribution and marketing officer, U.S. retail markets. “Importantly, this will significantly simplify our business, allow us to dedicate our considerable marketing power behind a single brand, and enable us to leverage and scale our technology to deliver unified but differentiated products and experiences across channels."