News
California Insurance Commissioner Provisionally OKs State Farm’s 22% Rate Request
California Insurance Commissioner Ricardo Lara provisionally approved State Farm’s request for a 22% interim homeowners insurance rate hike, the California Department of Insurance announced on Friday.
The approval depends on whether the company can justify the rate increase with data during a public hearing scheduled for April 8.
In a statement, State Farm said, “It’s time for certainty in the California insurance market for our customers. The provisional nature of today’s decision does not improve that certainty but it’s a step in the right direction. We are moving forward with implementing this provisionally approved rate and will continue to work with the California Department of Insurance for a sustainable future for the California insurance market.”
“State Farm General has worked openly and honestly with all parties in this process,” the carrier continued. “In addition, State Farm General will continue to monitor capacity to support its risks and build sufficient capital for the future.”
Commentary/Opinion
Trust, Personalization and Transparency: Foundational for Premium Accuracy | Insurance Innovation Reporter
"IIR contributors Alan Demers and Stephen Applebaum continue to knock it out of the park in their industry analysis efforts. They wrote toward the end of last year on the issue of “broken trust,” related to the negative sentiment that became lethal with the assassination of UnitedHealth CEO Brian Thompson. This week they combine the theme of trust with that of profitability with “Trust, Personalization and Transparency: Foundational for Premium Accuracy".”
ANTHONY O'DONNELL, Executive Editor, 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
Tackling the Disconnect Between Insurers and Insureds | Insurance Thought Leadership
The insurance industry has focused on price, not service, for far too long, producing a failure to communicate with customers.
The state of the insurance industry’s reputation in 2025, in a word, is disastrous.
Last year, insurance claims exceeded $100 billion, and the biggest takeaways for most insurance consumers centered on:
- Coverage cancellations or non-renewals
- Lack of transparency due to complex policy language or fine-print legalese
- Denial of claims or complex processes complicating the recovery process
- Rising premiums, along with either limited or no coverage options available
- An education gap between what consumers think their policies cover versus actual coverages
This is not to say that last year's CAT events were the deciding factor in how consumers perceive the industry. There has been a decades-long process as insurance has increasingly undercut its reputation by continuing to commoditize itself, competing on price versus service. Last December’s murder of United Healthcare’s CEO and the resulting public swell of support for the alleged killer helped bring the broader insurance industry’s reputation into focus, both for the public and for insurance professionals.
Colleen O’Hara is a senior executive with Freshquote, which serves as a personal shopper for insurance consumers.
Public needs greater certainty of insurance availability: Chubb CEO Greenberg - Reinsurance News
The public needs greater certainty regarding insurance availability, and that begins with regulation that supports an adequate price for the risk, says Evan G. Greenberg, Chairman and CEO of Chubb Group, in his recent Letter to Shareholders.
Growing natural catastrophe risks are a persistent problem for society. Greenberg noted that both large and small weather events are on the rise. Additionally, the concentration of property values in catastrophe-exposed areas has been rapidly increasing for years, along with rising rebuilding costs due to regulation, standards, labor, and materials—all of which further raise the cost of cat events for society.
He stated, “The insurance industry incurred $140 billion in insured CAT losses globally last year, and it was a normal year. The cost of the new normal is increasing quickly.
“And as the cost of catastrophes increases for the industry and society, it is naturally impacting the price and availability of insurance.”
Greenberg emphasised that the public needs greater certainty regarding insurance availability, which starts with regulation that supports an adequate price for the risk.
How disappearing public information threatens insurance
The insurance industry relies on a steady flow of publicly available data to predict losses, price policies, and mitigate financial exposure.
What happens when those data streams dry up? We're on the verge of finding out.
Recent governmental workforce reductions, agency closures and “streamlining” initiatives fostered by President Donald Trump, his unelected advisor, Elon Musk, and the newly formed Department of Governmental Efficiency (DOGE) blew massive holes in once-reliable datasets.
Jennifer Overhulse is a writer, as well as a content and public relations (PR) authority, with an extensive journalism background and insurance expertise specifically related to trends driving the adoption and implementation of insurance technology (InsurTech), its impact on greenfield and incumbent insurance companies, distribution channels, startup partners, and the industry at-large.
Climate/Resilience/Sustainability
Death toll rises, National Guard deployed after deadly weekend storm
The National Guard is being deployed as residents across the United States began to assess the fallout from dozens of tornadoes, wildfires, and dust storms that left at least 42 people dead and hundreds of decimated buildings in their wake over the weekend.
Field crews from weather service offices across the central and eastern U.S. began surveying the damage Sunday after deaths were reported in Kansas, Mississippi, Arkansas, Texas, Alabama, Missouri and Oklahoma, where almost 300 houses and structures were destroyed by wildfires. As clean-up begins for some, parts of the Central and Southern High Plains will be at risk for extreme or critical fire weather Monday, the National Weather Service said.
Nationwide, there are more than 130,000 power outages Monday morning, according to USA TODAY's outage tracker, including over 25,000 outages in Missouri, where at least a dozen people were killed and an EF-3 tornado with peak winds of 140 mph was reported Saturday.
Study: Rain-Soaking Atmospheric Rivers Getting Bigger, Wetter And More Frequent
As extreme weather events have hit the world hard in recent years, one meteorology term — atmospheric rivers — has made the leap from scientific circles to common language, particularly in places that have been hit by them.
That stands to reason.
The heavy rain and wind events most known for dousing California and other parts of the West have been getting bigger, wetter and more frequent in the past 45 years as the world warms, according to a comprehensive study of atmospheric rivers in the current issue of the Journal of Climate.
Announcements
Boyd Group Aiming for $5B in Annual Revenue by 2029 - Autobody News
Boyd Group, (TSX: BYD.TO), the Canada-based parent company of Gerber Collision & Glass in the U.S., announced a five-year goal of reaching $5 billion in annual revenue in 2029, up from its current $3 billion, and achieving the No. 1 or No. 2 market share position in every market it serves.
“(T)his plan delivers continued double-digit percentage revenue growth and accelerated profitability,” said Tim O’Day, CEO of Boyd Group until his retirement in May, when Brian Kaner will move into that position.
“I am confident in Brian and the team’s ability to execute this plan and capitalize on the significant opportunities in our highly fragmented market.”
O’Day had been with Gerber Collision for six years when that company was acquired by Boyd in 2004. Since then, he has served in various leadership roles, including becoming chief operating officer for all of Boyd’s North American collision operations in 2017, before becoming CEO in 2020. The company late last fall announced its succession plan following O’Day’s retirement this spring.
During a recent call with financial analysts, Kaner acknowledged “the North American collision industry faced several short-term headwinds in 2024, including a mild winter, rising total loss rates due to lower used car prices, customers deferring claims amid economic uncertainty and the significant increase in insurance premiums.”
InsurTech/M&A/Financeđź’°/Collaboration
Insurtech funding in LatAm dipped in 2024 but number of startups continues to rise: MAPFRE - Reinsurance News
According to the ninth edition of the LatAm Insurtech Journey, developed by Digital Insurance LATAM and sponsored by MAPFRE, the Madrid-based insurer, annual investment in the sector fell by 38% compared to 2023, reaching only $92 million, although the second half of the year saw a 156% increase compared to the first half, suggesting a positive outlook for 2025.
The Latin American insurtech ecosystem closed 2024 with more than 500 insurtechs, despite low investment in the annual computation of venture capital investment.
There are 502 startups in the region, amounting to a 2024 growth rate of 5%, achieving an average of 12% since 2021.
According to the report, the rate of attraction of foreign insurtechs stands at 29%, while international expansion is growing by 23%, with an internationalisation rate of 15.9% led by the ecosystems of Chile at 32% and Peru at 50%, due to their scalability needs.
Out of the whole insurtech ecosystem, 51% is dedicated to digital distribution, while 49% is an enabler and collaborates with re/insurers and intermediaries.
How Optimizing Modern Insurtech For A New Generation Is Building Generational Wealth
Insurtech is pivotal in reshaping financial opportunities for communities who have contended with inadequate access to insurance services vital for wealth transfer.Insurtech is pivotal in reshaping financial opportunities for all communities who have contended with inadequate access to insurance services vital for wealth transfer. T
his intersection of insurance and technology has prompted Jay Maska, founder of Nonstop Financial and agency owner of Family First Life, to empower entrepreneurs in the insurtech space with the information needed to build multi-million dollar businesses. With 52% of the total U.S. population owning life insurance, there is a burgeoning opportunity for insurtech to democratize financial inclusion and secure generational wealth.
The Breakdown You Need To Know:
Insuretech is about agents leveraging unique perspectives to serve clients better while ensuring everyone has the opportunity to benefit from the financial security and peace of mind life insurance provides. They are making a tangible difference in people’s lives and helping entrepreneurs tap into the vast opportunities within the Life Insurance & Annuities industry that is projected to reach $994.4 billion in 2025, according to research firm IBIS World.
“We operate in the life insurance, annuities, and financial planning sector, focusing on removing traditional barriers to financial security. Our approach leverages technology-driven sales systems, a seamless client experience, and a focus on financial literacy to empower both policyholders and agents in a rapidly evolving market,” said Maska to CultureBanx.
Building generational wealth through life insurance policies is a simple process and companies like Nonstop Financial continue to modernize the process. The cost stays nowhere near what you pay for homeowners or car insurance, yet the death benefits range from $5,000 to millions of dollars.
Data Privacy
Cyber threats surge in 2025 as Coalition highlights rising risks and new trends - Reinsurance News
Coalition, an Active Insurance provider focused on managing digital risks, has published its Cyber Threat Index for 2025.
The report provides an in-depth analysis of cybersecurity trends from 2024 and highlights emerging threats that businesses should be aware of in 2025.
A major takeaway from the report is that the majority of ransomware claims in 2024 were traced back to vulnerabilities in perimeter security devices, such as virtual private networks (VPNs) and firewalls, which accounted for 58% of ransomware incidents.
The second most common attack vector was remote desktop services, responsible for 18% of claims.
“While ransomware is a serious concern for all businesses, these insights demonstrate that threat actors’ ransomware playbook hasn’t evolved all that much—they’re still going after the same tried and true technologies with many of the same methods,” commented Alok Ojha, Coalition’s Head of Products, Security.
St. Patrick's Day
St. Patrick’s Day 🍀
St. Patrick’s Day today! As celebrations get underway, it's important to remember that as a host, you could be held responsible if guests drink too much and cause harm.
Learn more about social host liability and how to protect yourself this season: LINK
Stay safe and responsible!
Insurance Information Institute