Financial Results
Berkshire, Progressive Are 2024 Underwriting Profit Leaders; Industry Income Record
[Ed. Note: Recall that Progressive and GEICO were among those taking aggressive steps as far back as 2021 including layoffs, rate increases and underwriting actions. There was significant blow back, especially around job cuts and GEICO's pullback from California.]
S&P Global Market Intelligence expects the U.S. property/casualty insurance industry to post more than $100 billion of net income for 2024—and that the biggest underwriting profits contributing to the figure will come from units of Berkshire Hathaway and Progressive.
The triple-digit aggregate industry net income figure will come from a combination of sharply improved underwriting results, for personal lines, in particular, coupled with the positive effects of higher interest rates on investment income, S&P GMI said in a new report based on data compiled from property/casualty annual statement filings with the National Association of Insurance Commissioners as of March 6. COMPLETE ARTICLE
Los Angeles Wildfires
Broad coalition urges California Governor, legislative leaders and local elected officials to rebuild Los Angeles to country’s strongest building code
As the Pacific Palisades, Altadena, and the broader Los Angeles community continue to reckon with the devastating toll of the January 2025 wildfires, a broad coalition of housing, fire science, insurance and policy experts are urging Los Angeles to rebuild using Chapter 7A building code. This diverse group has written a letter to Gov. Newsom, Senate and Assembly leaders, Los Angeles Mayor Bass, Supervisor Kathryn Barger and the Los Angeles County Board of Supervisors urging them to act now to ensure the rebuilding process incorporates simple, clear and actionable construction and landscaping requirements that will reduce wildfire risk.
“Ensuring the next generation of homes in the Pacific Palisades and Altadena are survivable and insurable is not a barrier to rebuilding – it is a necessity,” said Roy Wright, President and CEO of the Insurance Institute for Business & Home Safety (IBHS). “The good news is that a path to a brighter, safer and more insurable future for Los Angeles residents is available, affordable and achievable.”
Los Angeles must confront two stark truths: 1. the destruction of these beloved communities has not reduced the broader wildfire risk to Los Angeles, and 2. the insurance market in California remains severely challenged.
“We must rebuild survivable homes and communities that can withstand the wildfires we know they will again face so homeowners have a home to return to,” said Wright. “Insurable means homes and neighborhoods that carriers are willing and have the capacity and tools to insure because homeowners have undertaken meaningful and verifiable risk reduction actions.”
Research
Most Execs Feel More Stressed at Start of 2025 Than 2024: Sentry
More than two-thirds of executives polled in a recent survey reported feeling more stressed at the beginning of 2025 than they did at the start of 2024.
The survey, conducted by Wakefield Research on behalf of Sentry Insurance, found stress levels elevated in 67% of participants. At the same time, 74% of executives said they were not completely confident that their company’s current insurance coverage is adequate.
Here are the IIHS 2025 Top Safety Pick Award Winners - Motor Illustrated
Small Cars, SUVs, and Large Pickups Among Top-Rated Models for Safety
Mazda secured eight Top Safety Pick+ awards, more than any other automaker.
The 2025 IIHS Top Safety Picks highlight vehicles that excelled in crash tests and pedestrian protection. SUVs dominated the Top Safety Pick+ list, with models from Hyundai, Kia, Genesis, and Subaru performing well.
COMPLETE ARTICLE AND LIST has released its 2025 Top Safety Pick and Top Safety Pick+ award winners, recognizing vehicles that meet high crash safety and prevention standards. The awards help consumers identify the safest options in different size categories, though larger vehicles generally offer more protection in a crash.
News
Texas bill aims to ban forced home-auto insurance bundling | Insurance Business America
Numerous complaints lead to questions of legality
Texas lawmakers and regulators are evaluating whether insurers should be allowed to require consumers to bundle home and auto insurance policies with the same company.
The issue has drawn attention from consumer groups and policyholders who say they were told they must bundle to maintain coverage.
The Texas Department of Insurance (TDI) reported receiving nearly 40 complaints as of early December from consumers who said they were required to add an auto policy to renew their homeowners insurance.
While bundling is typically optional and marketed to receive a discount, some consumers have expressed concerns about being given no choice in the matter.
Insurance bundling in the US
Bundling home and auto insurance policies is a common practice in the insurance industry. Insurers often encourage this by offering discounts and streamlined services. However, while bundling is promoted through discounts and convenience, critics say making it compulsory could infringe upon consumer rights and limit market competition.
Reinsurance market to plateau at a high level through future renewals: Sven Althoff
Hannover Re, one of Europe’s big four reinsurance companies, expects the renewal rounds for the rest of 2025 to be similar to the experience at January 1st with the market poised to plateau at a high level, according to Sven Althoff, Member of the Executive Board for property and casualty (P&C).
Executives at Hannover Re recently discussed the firm’s 2024 performance and took questions on market trends and conditions after announcing a very strong set of results for the year, which included 28% net income growth to €2.3 billion.
During the call, the company was questioned on the outlook for the April and mid-year reinsurance renewals, following some overall softening at 1.1 2025 and a particularly costly start to the year with the Los Angeles, California wildfires.
“When it comes to the renewals for the rest of the year, we expect them to look rather similar to what we have seen at the 1st of January renewal,” said Althoff. “So, this would mean that the market is plateauing at a high level, with terms and conditions and retention levels more or less unchanged.”
Commentary/Opinion
Trust, Personalization and Transparency: Foundational for Premium Accuracy | Insurance Innovation Reporter
With the right approach, challenging conditions can become opportunities to build stronger, more transparent relationships with customers while improving operational efficiency.
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?
Stephen Applebaum and Alan Demers as featured in Insurance Innovation Reporter
InsurTech/M&A/Finance💰/Collaboration
Lemonade Partners with ZestyAI to Elevate Underwriting Precision — ZestyAI
ZestyAI announced today that Lemonade, the digital insurance company powered by AI and social impact, has adopted the ZestyAI platform to further optimize underwriting for key catastrophe perils in the U.S., building on the company’s existing technology and underwriting operations.
ZestyAI’s predictive analytics platform leverages advanced AI models to analyze the interplay of climatology, geography, and the unique characteristics of each structure and roof, enabling precise and transparent property risk assessments.
By leveraging unique risk insights, Lemonade can make smarter catastrophe risk mitigation decisions. Additionally, ZestyAI’s proactive regulatory approach, with approvals in key states, simplifies compliance and enables Lemonade to implement these models faster.
“Since our launch, we've always been committed to using technology to create smarter, more accessible insurance products,” said Ori Hanani, Senior Vice President of Insurance at Lemonade.
AI in Insurance
Bestow CEO explains how insurtechs must differentiate in age of AI
In an environment where technology and AI have begun proliferating even traditional insurance practices, insurtechs must find other ways to differentiate themselves and adapt, Melbourne O'Banion, CEO and co-founder, Bestow Inc., said.
Bestow is one of the more recognizable names in the American insurance landscape, with CNBC naming it as one of the world’s leading insurtech companies of 2024.
“Well, I would say that if an insurtech’s business model is completely dependent on an AI tool or software that a competitor can easily pick up and utilize, then the insurtech probably doesn’t have a highly durable and sustainable business model. I think that is a risk, depending on the insurtech’s business model, that they have to consider,” O'Banion said in an interview with InsuranceNewsNet.
He suggested insurtechs find innovative ways to pivot their core business model to keep up with the rapid pace of advancement, such as creating specialized solutions and augmenting the technological advancements they have already been leveraging up until this point.
“Because AI has entered into the picture, it almost now overemphasizes the need for a company to bring something to market that is differentiated and that allows for them to do something unique wherever they’re competing in. And then AI, I think, is just going to magnify whatever that is,” O'Banion said.
Gen AI is only as effective as the people that use it | QBE Singapore
The good news is that humans will remain a critical part of the technology’s deployment — whereby machine-generated cost efficiencies and informational accuracies are supported by human talent, expertise and experience
Unquestionably, the technological breakthrough of the past few years has been the emergence of generative artificial intelligence, or Gen AI for short. The technology has since accomplished a myriad of achievements that were unthinkable a few years ago, like passing the final MBA exam at Wharton School, or creating a painting that sells for over US$1 million.
Every industry appears to be embracing its capabilities, and the insurance industry is no exception. However, it’s important to acknowledge a number of points.
First, it’s an evolving area for all industries, and there is a strong likelihood that we’ve barely scratched the surface in terms of what it can accomplish for us.
Second, despite talk of Gen AI being able to run our world autonomously, decision-making will and should remain with humans, rather than reside with machines — at least for now. Insurance serves as a good case study to showcase the enormous benefits it brings to businesses; while at the same time, it demonstrates where use of the technology will stop, and human decision-making takes over.
Smart machines, smarter humans
An area benefitting from the technology is underwriting. Before the advent of Gen AI, underwriters could spend days or even weeks researching a specific risk, particularly within more complex lines like property and engineering, to arrive at a specific profile and price. Information pertaining to such lines tends to be very technical, and in the past, this would require a lot of human analysis to understand each risk.
Ronak Shah – CEO Wholesale Markets and CEO Singapore, QBE Asia
The Value Of Open-Source Data In The Insurance Industry
From a regulatory standpoint, open-source data can enable real-time auditing and monitoring to ensure fairness and protect against discriminatory pricing methods.
Historically, industries have transformed when they embraced open data and moved away from fragmented, proprietary systems. The results? Faster innovation, increased efficiency and greater accessibility to vital services. Some examples of this type of evolution include:
• The Printing Press made knowledge-sharing and revolutionary ideas available through widescale book printing.
• Open banking in the U.S. enabled the sharing of consumer data with third-party developers (with consumer consent) to create more personalized financial services products.
• Tesla’s open patent policy has enabled startups and large EV manufacturers to leverage their innovations.
• The development of open healthcare data standards like FHIR (Fast Healthcare Interoperability Resources) opened access to medical records across healthcare providers for the benefit of the patient.
• The Third Agricultural Revolution (a.k.a. Green Revolution) introduced information-sharing techniques that elevated global agricultural productivity.
• In higher education, open access to knowledge through the internet has created a world where people can have access to free courses through Coursera or from major universities like Harvard, MIT and Stanford.
These open-source models have reshaped economies, supply chains and core services that underpin modern life. So, why hasn’t insurance—one of the most vital industries in society—followed suit?
Why Insurance Has Lagged Behind*
There are two key reasons why insurance has been slow to adopt open-source data frameworks at scale.
Robert Clark is the founder and CEO of Cloverleaf Analytics
Announcements
Chubb Combines Lower Middle Market and Digital Small Business Units
Global insurer Chubb announced the creation of a new division within its North America Middle Market organization, combining its Lower Middle Market and Digital Small Business divisions into a single unit.
The new unit will operate as North America Small & Lower Midmarket.
Rob Poliseno has been appointed the new division’s president, reporting to Ben Rockwell, president, of the North America Middle Market division. Poliseno brings 28 years of industry experience to his new position, including nearly 17 years with Chubb. Previously, he served as division president of Small Business and North America Digital.
Recommended Events
Insurtech Hartford Symposium
April 29th & 30th
Connecticut Convention Center
The InsurTech Hartford Symposium is a highly immersive conference experience that brings together great minds and world-class leaders offering the perfect ecosystem to Learn, Connect, and Unwind.
The InsurTech Hartford Symposium is in its fifth year and back in Downtown Hartford. People in the region are getting excited to have the event return to their backyard, and people from out of state are happy for us to be closer to transportation hubs such as high-speed trains and BDL airport. REGISTER Pre-Day Event ; EmpowerHER, April 28th & 29th
Join us for the Inaugural Insurance Thought leadership Event
This one-of-a-kind gathering designed to celebrate and empower women and allies in the InsurTech industry. Partnering with the InsurTech Hartford Symposium, we’re offering this exclusive pre-event to maximize your experience in Connecticut and provide you with opportunities to connect, learn, and grow.
This in-person event is dedicated to inspiration, connection, and celebration—a chance to engage with thought leaders, gain career-boosting insights, and foster meaningful relationships that will propel your career in insurance and technology. REGISTER
InsurTech Consulting, LLC and ‘Connected’ newsletter are proud supporters of InsurTech Hartford Symposium and EmpowerHER, available to assist with sponsorship opportunities. Please contact alan@insurtechconsult.com
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
Podcast Sponsor
Audio Version - 'Connected: The Podcast' --- 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.
Pulse Podcasts: Introduce a new way for your audience to hear your voice! We are a podcast creation service that helps businesses turn their written content, like blog posts and news articles, into beautiful podcasts. Our platform writes the script, records the voices, and mixes the audio to create engaging content for your audience. It's affordable and has super-fast turnaround!
LISTEN AND SUBSCRIBE BELOW