Today's Headline
US P&C industry sees $22.9bn underwriting gain in 2024, reports AM Best
According to recent analysis from global credit rating agency AM Best, the US property and casualty (P&C) industry recorded a $22.9 billion net underwriting gain in 2024, the first underwriting profit since 2020.
This marks a significant improvement from the $21.3 billion underwriting loss reported by the sector in the previous year.
The findings are based on companies’ annual statutory statements submitted by 11 March 2025, covering approximately 97% of the total net premiums written within the P&C industry.
AM Best’s report highlights that the P&C industry’s combined ratio improved by 5.0 percentage points, reaching 96.6% in 2024.
Catastrophe losses accounted for an estimated 8.7 points of the combined ratio, which remained consistent with 2023.
Commentary/Opinion
RISING UNCERTAINTY: RISK & OPPORTUNITY FOR INSURANCE RESILIENCE
Until recently it was said that the only constant was change – now the only constant is uncertainty.
Uncertainty is at a generational high in almost every aspect of our lives; socially, financially, politically, and technologically. One of the most serious consequences of this uncertainty is its impact on risk assessment across all lines of insurance. However, it also represents a major opportunity for insurers.
Alan Demers and Stephen Applebaum
Research
Widespread Price Increases, Extreme Weather Events and Long Repair Cycle Times Strain Customer Satisfaction with Homeowners Insurance Claims, J.D. Power Finds
A homeowners insurance property claim should be a moment-of-truth opportunity when insurers make good on their coverage promises to their customers, but instead it has increasingly become a pain point. According to the J.D. Power 2025 U.S. Property Claims Satisfaction Study,SM released today, the sheer volume of catastrophic events, history of widespread premium increases and slow repair cycle times have conspired to strain customer satisfaction with the homeowners insurance claims experience.
“There were 27 catastrophic events in 2024 and 28 the year before. Homeowners insurers are currently losing roughly one nickel on every dollar of premium they collect, and with total cost of events like the California wildfires still being assessed, there seems to be no end in sight,” said Mark Garrett, director of insurance intelligence at J.D. Power. “Customers are, in essence, paying higher prices for slower service. The average claimant does not receive final payment on a claim until 44 days after the first notice of loss, and unless insurers are communicating frequently and clearly along the way, customer satisfaction suffers.”
Following are some key findings of the 2025 study:
Repair cycle times continue to rise: The average claim cycle time—the amount of time from filing the claim to finished repairs—is now 32.4 days and the average cycle time from first notice of loss to final payment is now more than 44 days, both of which are the longest times since 2008 when the study began. The average overall customer satisfaction score for a claim that is completed within 10 days is 762 (on a 1,000-point scale). That score falls 167 points to 595 when repairs take more than 31 days. MORE FINDINGS
Telematics, Driving & Insurance
How Agents and Carriers Can Play a Role in Reducing Distracted Driving
Distracted driving continued to be a leading cause of road accidents, according to the National Highway Traffic Safety Administration with over 3,000 deaths in the U.S. estimated to be directly attributed to driver distraction in 2022.
In addition to fatalities, distracted driving is responsible for over 400,000 injuries each year, according to the U.S. Center for Disease Control and Prevention (CDC).
Distracted driving can be categorized into three main areas—visual, manual and cognitive distractions—and phone use is the leading cause of distracted driving in all three. It is a societal crisis that is being tackled via many avenues, including the federal government and private and nonprofit organizations, such as the National Distracted Driving Coalition (NDDC), formed by the National Transportation Safety Board.
In October 2024, the NDDC held a day of awareness to bring attention to the life-saving smartphone feature, “Do Not Disturb While Driving," which comes preinstalled on smartphones and automatically silences calls and alerts when driving. Earlier in 2024, the **National Highway Traffic Safety Administration (NHTSA) launched its “Put the Phone Away or Pay" campaign as part of a comprehensive strategy to remind drivers of the deadly dangers of distracted driving and the potential legal consequences they could face.
Working in conjunction with these agencies and organizations, carriers and agents can support such initiatives, creating a cohesive strategy to address the dangers of distracted driving and make drivers safer and more insurable.
“Carriers and agents can work together to promote safe driving through education and incentives," says Katie Ekstrom, assistant vice president of auto product development for personal insurance, Travelers. “This includes consistently educating customers about the very real dangers of distracted driving, while also finding ways to reward positive driving behaviors."
InsurTech/M&A/Finance💰/Collaboration
GM teams up with Nvidia to bring AI to robots, factories, and self-driving cars | TechCrunch
General Motors is turning to Nvidia to help bring AI to the physical world in an expanded collaboration designed to touch every aspect of the automaker’s business, including factories, robots, and self-driving cars.
Nvidia founder and CEO Jensen Huang, who announced the partnership Tuesday during his keynote at the company’s GTC conference in San Jose, said the time for autonomous vehicles has arrived.
“We’re looking forward to building with GM AI in all three areas,” he said on stage. “AI for manufacturing, so they can revolutionize the way they manufacture; AI for enterprise, so they can revolutionize the way they work to design cars and simulate cars, and then also AI for in the car.”
The deal means Nvidia will provide AI infrastructure — essentially GPUs — for GM as well as help the automaker build its own AI, according to Huang.
VIU BY HUB PARTNERS WITH VALON TO TRANSFORM HOMEOWNERS INSURANCE EXPERIENCE
VIU by HUB (VIU), an omnichannel insurance brokerage platform, today announced a strategic partnership with Valon, a premier mortgage servicing and software company.
As insurance costs rise and coverage becomes more complex in many regions, this timely partnership provides Valon homeowners with simpler insurance management, streamlined renewal processes and proactive support throughout their homeownership journeys.
Valon homeowners gain access to VIU's comprehensive insurance services, including instant quotes from multiple carriers and unbiased guidance from licensed agents. The partnership enhances the insurance experience for homeowners by proactively helping them find insurance plans tailored to individual needs and risk profiles, resulting in competitive pricing and appropriate coverage.
"This partnership represents our commitment to removing barriers from the insurance process and minimizing consumer risk," said Bryan Davis, President of VIU by HUB. "By integrating our comprehensive insurance solution directly into Valon's platform, we're empowering homeowners with transparency, choice and confidence at a critical decision point, whether that's during the initial home purchase or at policy renewal time."
The move comes at a crucial time as homeowners nationwide continue to face rising insurance costs, with premiums expected to increase as much as 15% this year. By proactively working together to address renewal increases, homeowners gain the opportunity to explore alternative options.
Emerald Acquires Insurtech Insights, a Global Leader in Insurance Technology Conferences and Innovation Programs | Morningstar
Emerald Holding, Inc. (NYSE: EEX) announced its acquisition of all assets of Insurtech Insights, a London-based company that serves the growing insurance technology community. Insurtech Insights produces leading conferences across Europe, Asia, and the U.S., serving as a premier platform for networking, education, and innovation in insurance.
The acquisition marks Emerald’s entry into the insurance technology sector, reinforcing its strategy to expand into high growth markets, and strengthens its portfolio through strategic acquisitions.
Founded in 2018, Insurtech Insights has established itself as a leading platform for insurance technology professionals, bringing together insurers, brokers, technology providers, investors, and thought leaders to explore innovations shaping the industry's future. The company helps carriers, brokers, and startups leverage digital technology to improve efficiency, increase revenue, and navigate the industry's digital transformation.
"Technology, particularly AI and automation, is transforming industries at an unprecedented pace, pushing businesses to innovate faster than ever," said Hervé Sedky, President & CEO of Emerald. "Our entry into the insurance technology sector through our acquisition of Insurtech Insights is a pivotal moment for us. This acquisition is not just about expanding our portfolio; it is about strategically blending Emerald’s event expertise with Insurtech Insight’s deep industry knowledge to create unparalleled platforms that drive innovation, foster connections, and support the industry's digital transformation."
AI in Insurance
AI Is Reshaping Insurance: 6 Trends to Watch | Insurance Thought Leadership
AI adoption in insurance accelerates as executives embrace real-time analytics and specialized technology for improved operations.
AI adoption in the insurance industry is gaining traction. According to Earnix's recent Industry Trends Report, 70% of insurance executives plan to implement AI models that use real-time data predictions within the next two years — more than double today's adoption rate. It's clear that insurers are increasingly relying on real-time predictive analytics as AI adoption accelerates.
As AI technology advances within the industry, insurers are leveraging both traditional AI, which analyzes data and predicts outcomes, and generative AI, which creates content and explains concepts. As they adopt these technologies, insurers can expect significant improvements across operations.
Announcements
Chubb to combine two North American divisions
Chubb has announced that it will combine its Lower Middle Market and Digital Small Business divisions to create a new division within its North American Middle Market organization. This new division will operate as North America Small & Lower Midmarket.
"The small business and lower middle market segments present significant growth and expansion opportunities for Chubb,” Juan Luis Ortega, executive vice president, Chubb Group, and president, Chubb North America, said in a release.
“As the distribution landscape continues to evolve, agents and brokers increasingly demand simplicity, efficient and fast underwriting, and seamless digital experiences. This combination integrates our decades-long underwriting experience in the Lower Middle Market with the agility and speed of our Digital Small Business division, allowing us to apply the full power and deep expertise of our team to service clients in this segment and drive growth."
Mobility
Subscription-based services not connecting with consumers
A study reveals that 76 percent of vehicle owners choose not to opt in to manufacturers' connected services subscriptions.
The verdict is starting to come in on automotive subscriptions, and it’s looking like a resounding flop. A recent study conducted by Smartcar, a company specializing in connected car management platforms, reveals that 76 percent of vehicle owners have not subscribed to any paid connected services offered by their manufacturer.
While the future of vehicles is undeniably tied to greater connectivity (it’s expected 96 percent of new models will be connected by 2030), motorists do not seem ready to pay for features that were once free.
Too expensive, not essential enough
The study, which surveyed more than 1,000 vehicle owners in Europe and the U.S., highlights a clear trend:
• 76 percent of drivers do not pay for a subscription • Among those who are subscribed, 49 percent pay for a service and 51 percent get free access • 50 percent of non-subscribers would agree to test a subscription... but only if the price dropped
The problem is simple: drivers don’t see the added value of these subscriptions. Many of them believe the features should be included in the vehicle price, as was previously the case.
Los Angeles Wildfires
LA wildfire victims are selling instead of rebuilding
Nearly 60% of the structures in Pacific Palisades were destroyed and almost half of those in Altadena are now piles of rubble.
Two months after wildfires swept through Pacific Palisades and Altadena, destroying an estimated 12,000 homes, a growing number of property owners are selling their burned lots rather than rebuilding.
As of last week, there were 60 burned lots for sale in Pacific Palisades and 32 on the market in Altadena, the Los Angeles Times reported.
California insurance commissioner to question State Farm’s financial stability in April hearing
California Insurance Commissioner Ricardo Lara has allowed a provisional emergency interim State Farm home insurance rate increase following the January wildfires while raising questions about the company’s financial stability.
The CDI said in a press release Friday that “unprecedented times call for decisive action,” and the increase is necessary to “safeguard Californians during the ongoing insurance crisis and stabilize the market.”
However, State Farm must justify the increase with data during an April 8 public hearing.