Financial Results
2024 US P&C statutory underwriting results: From famine to feast
Dramatically improved personal lines results in 2024 drove historically favorable underwriting profitability for the US property and casualty industry, an analysis of newly available statutory financial data reveals.
An approximate year-over-year swing of $47 billion from the industry's second-consecutive net underwriting loss in excess of $20 billion to an underwriting profit of nearly $27 billion, according to our initial review of statutory results now available on S&P Capital IQ Pro, has few historical precedents.
And the combination of the sharply improved underwriting results with the positive effects of higher interest rates on investment income means the industry is likely to post net income in excess of $100 billion for the first time in a calendar year, up from $85.10 billion in the year-earlier period.
We calculate that the property and casualty (P&C) industry's statutory combined ratio improved to 96.6% in 2024 from 101.8% in 2023, marking the most significant year-over-year reduction since 2013.
While 2024 was a heavy year for natural catastrophes, particularly in the form of severe convective storms during the second and third quarters and hurricanes in the third and fourth quarters, significant portions of the associated losses flow to reinsurers that are based outside the US and are not incorporated in these results. Additionally, a material portion of losses from Hurricane Helene were caused by floods and were not covered under typical residential property insurance.
Momentum in the private auto business, which accounted for 28.5% of US P&C industry net premiums written in 2024, bodes well for another year of strong underwriting profitability in 2025 even with a temporary setback awaiting in the first quarter in property insurance lines due to January's southern California wildfires.
Los Angeles Wildfires
Downed municipal power lines may have caused Palisades wildfire: Lawsuit
Several Los Angeles residents who were affected by the deadly Palisades wildfire sued city authorities Monday over claims that municipal utility power lines ignited the fire.
The suit cited a Washington Post article dated Jan. 12, in which the Los Angeles Department of Water and Power told the newspaper its power lines near the origin of the fire had been disconnected from the electricity system for five years, which the residents’ lawyers said was incorrect.
The city’s counsel admitted last week the statement given to the Washington Post was incorrect and that the line was energized at the time of the fire, the lawsuit added.
“That statement was a result of a misunderstanding. The line had been de-energized for several years before the fire, but as we said in our prior correspondence, it was energized at the time the fire ignited. There were no faults on the line around the time the fire ignited,” the lawsuit quoted LADWP’s attorney as telling the plaintiffs’ lawyers.
The lawsuit also claimed that two major reservoirs critical to fighting the fire, Santa Ynez and Chautauqua, were drained by the department prior to the fire to forgo proper maintenance as a cost-savings decision.
The residents are seeking damages including costs of repairing or replacing properties.
Commentary/Opinion
US P&C insurance market remains stable but uncertainty looms - report
Social inflation remains among the primary concerns
The US property and casualty insurance market remains stable at the start of 2025, but economic uncertainty, social inflation, and shifting risk factors are creating challenges for insurers and policyholders, according to the latest Lockton Market Update.
The quarterly report from Lockton highlighted key trends shaping the commercial insurance sector. While insurers have maintained capacity across most major lines, rising litigation costs, regulatory shifts, and the evolving economic landscape are pressuring certain segments of the market.
Signs of an 'Insurtech Spring' | Insurance Thought Leadership
While the search for innovation in insurance has been relentless in the dozen years I've been involved with the industry, the insurtech movement has waxed and waned. For years now, funding for insurtech startups has simply waned. It fell from some $16 billion in 2021 to roughly $4 billion last year as some big ideas didn't pan out and as the industry came face to face with more immediate problems, such as the soaring costs for auto insurers.
But the explosive gains in the stock prices of Lemonade, Hippo and Root got me to take another look at the trends in insurtech startups, and there are signs of spring after the long winter. Although I learned that those three marquee names still have a good ways to go before they can be crowned successes, there seem to be lots of interesting ideas bubbling to the surface, principally in AI but also in other areas.
Those ideas likely won't lead to 2021 sorts of investment numbers -- AI startups generally don't require huge amounts of capital to launch -- but the impact could still be huge.
I credit the term "insurtech spring" to Teddy Himler, founder and managing partner at Optimist Ventures whom I met through the (highly recommended) weekly Insurtech Rap hosted by our friend Dave Wechsler, principal at OMERS Ventures. I followed up with Himler, whose take on the last several years of insurtech is that "mobile didn't really have much of effect on the insurance industry. Okay, sure, you could click your way into a renter's policy or whatever, but the mobile and cloud waves didn't affect the economics or the value chains, or the efficiencies of insurance broadly."
By contrast, he said, "AI, machine learning, IoT, big data synthesis, all of that makes a huge difference."
AI in Insurance
AI Can Fix Everything in Insurance. Right? | Insurance Thought Leadership
There is no question about whether AI can improve insurance. Rather, the questions are about which functions, how extensively and when.
Every time we read an article or a marketing piece espousing the astounding power of AI as applied to insurance, we cannot help but think about Gus Portokalos.
If you recall, Gus was the bride’s father in the 2002 hit movie "My Big Fat Greek Wedding," who famously suggests, "Put some Windex on it!" as a solution to all manner of problems, including cuts and scrapes. Gus proudly related every word, phrase and meaning back to his Greek ancestry as a solution or fix to each conversation. A lot of people are treating AI in the same fashion.
Even the typically thoughtful Bill Gates gushed that AI is "the first technology that has no limit" and “could be as revolutionary as the internet or mobile phones.”
Claims
Claims is an area eyed for more efficiency, greater accuracy, and better customer experience despite some of the negative implications of a machine denying claims, and associated efforts to ban such usage. Particularly sensitive and controversial use-cases are for direct customer interaction, even for loss intake, known as FNOL (First Notice of Loss), which is highly manual and would have tremendous ROI.
FNOL
FNOL is where each claim begins in the cycle. In fact, timely reporting is a key condition of the insurance contract. The claim reporting process is part interview, part explanation, in which customers are asked a series of questions to capture when, how and what happened to whom. Once this information is gathered and keyed into the system, an assignment(s) is made to one or more adjusters where the process unfolds.
Prior to the development of today’s call centers, claims were reported individually by local agents filling out ACORD forms and mailing them in to the insurance company. COMPLETE ARTICLE
Alan Demers and Stephen Applebaum as published in Insurance Thought Leadership
States’ AI-Related Legislation Aimed at Insurance Is ‘Unfounded’, Says NAMIC
Policy discussions on the use of artificial intelligence in insurance are “unfounded” and “detrimental to policyholders,” according to a analysis from the National Association of Mutual Insurance Companies.
The use of AI in insurance underwriting and rate making has led to concern from some regulators, advocates, and policymakers over whether AI would led to proxy discrimination, an algorithmic bias and eventual changes to the affordability and availability of insurance products in certain areas or for certain classes.MORE
InsurTech/M&A/Finance💰/Collaboration
Ravin, Plnar team up on property, car inspections - Insurance News - insuranceNEWS.com.au
Insurtechs Ravin and Plnar have united to provide insurers an inspection tool for home and motor claims assessments.
Ravin offers artificial intelligence solutions for vehicle checks, while Plnar offers 3D models for property estimates and subrogation works. They say the joint offering will help insurers cut cycle times by 50%, reduce costs and increase customer satisfaction.
Plnar CEO Andy Greff says the partnership is “such a natural fit for each of us, extending both of our traditional lines of business”.
Ravin’s technology was built from scans of more than 2 billion vehicle images and is used by insurers, carmakers including Toyota and rental companies in the US and Europe. It combines camera footage with algorithms to provide a 360-degree analysis of a vehicle’s exterior condition.
US-based Plnar creates 3D renderings of home interiors so property damage can be documented via a smartphone, enabling virtual self-serve claims.
Ravin and Plnar’s investors include IAG. Scott Gunther – IAG Firemark Ventures’ general partner – has said the Plnar technology could streamline claims assessments.
Awards
Visionary Insurance Innovators Among Winners of 2025 Making Waves Awards
InsurTech Hartford proudly announces the winners of the 2025 Making Waves Awards, recognizing standout leaders and disruptors who are redefining what’s possible in insurance. From pioneering AI-powered solutions to driving cultural transformation and operational excellence, this year’s honorees are making bold moves—and lasting impact—across the insurance ecosystem.
“These honorees aren’t just improving insurance—they’re reimagining it,” said Stacey Brown, Founder of InsurTech Hartford. “Their breakthroughs in technology, leadership, and execution are creating ripple effects across the industry. We’re proud to recognize their achievements and amplify their impact.”
The 2025 Making Waves Awards Winners By Category
Industry Thought Leader
- Jennifer Linton, CEO & Founder, Fenris Digital
- Meredith Barnes-Cook, Partner, ReSource Pro Consulting
Innovative Entrepreneur
- Valkyrie Holmes, CEO / Co-founder, Faura
- Michael Balarezo, CEO, Adjusto
Innovation Excellence – Life Insurance
- Lisa Bickus, CEO, 1891 Financial Life
- Meg Duty, SVP of Technology, Puritan Life
Innovation Excellence – P&C Insurance
- Prasath Parthiban, Assistant Vice President, Sompo
- Gordon Hui, SVP, Product Management ATS, HSB, a Munich Re Company
The 2025 Making Waves Awards will be presented at the InsurTech Hartford Symposium, taking place April 28–30. As one of the industry’s most anticipated gatherings, the Symposium convenes top executives, founders, and thought leaders to explore transformative ideas and spark new collaborations in insurance and insurtech.
For more information about the Making Waves Awards and to register for the InsurTech Hartford Symposium, visit. There is still limited space to register at a special Women's History Month discount rate through March 31.
Announcements
Property Data and Info Provider CoreLogic Rebrands to Cotality
The rebrand includes a new name, logo and brand identity.
“The property ecosystem underpins the prosperity of individuals, businesses, governments, and society as a whole. But at the core, it’s people, businesses, and communities that drive it forward,” Patrick Dodd, president and CEO of Cotality said in a statement. “Cotality’s insights build on this, by turning questions into futures you can see.”
A company spokesperson said no other changes are planned at this time.
The new Cotality also comes with a new tagline, “Intelligence beyond bounds,” which the company said serves as an expression of its identity.
The company formerly known as CoreLogic provides regular forecasts on properties and perils endangering them.
The company is based in Irvine, California, and has operations in the U.S., Canada, the United Kingdom, Australia, New Zealand, India and Germany.
Climate/Resilience/Sustainability
Weather Shifts Drive 113% Surge in Q4 2024 CAT Insurance Claims
The insurance industry is grappling with a new reality as shifting weather patterns and rising reconstruction costs are driving up catastrophe claims by 113% year-on-year, according to a report on fourth-quarter property claims by Verisk.
Traditionally, the fourth quarter has been dominated by winter storm claims. However, 2024 saw a significant shift towards late-season hurricanes, resulting in a 36% surge in total claims volume compared to the previous year. Most notably, hurricane-related claims skyrocketed by 1,100% compared to Q4 2023, indicating a fundamental change in seasonal risk patterns, according to Verisk.
The Southeast experienced cost increases at six times the national rate, with Florida, Georgia, and South Carolina bearing the brunt of Q4 hurricane damage. Surprisingly, the Great Plains and Pacific Northwest also recorded unexpected claim increases, suggesting broader climate shifts affecting previously less vulnerable region, the report noted.
Flooding Is Vertical in Nature: NFIP Flood Zones Should Be Too
Flooding remains one of the most destructive natural disasters in the United States, causing billions of dollars in damage annually. For decades, the National Flood Insurance Program (NFIP) has designated Special Flood Hazard Areas (SFHAs), commonly known as flood zones, as a tool for assessing flood risk. These zones guide lenders, insurers, and property owners in determining flood insurance requirements.
The NFIP's reliance on static, horizontally defined flood zones is an outdated method of evaluating flood risk.
In today's world of advanced technology, flood zone designations should offer precise and predictive risk assessments. Unfortunately, past disasters have repeatedly demonstrated that the current approach falls short.
The NFIP's reliance on static, horizontally defined flood zones is an outdated method of evaluating flood risk. This approach often misleads property owners—some at significant risk forego coverage, while others far above flood levels are unnecessarily burdened with insurance requirements. A shift to vertical flood zone assessments, like those used by CATcoverage.com, which considers the elevation and individual flood risk characteristics of structures, is a more effective solution.
Payments
Edenred Launches Virtual Cards for Insurance Payouts
Edenred Payment Solutions, a UK-based e-money institution, has introduced a new Virtual Card Number product aimed at insurance companies seeking to accelerate their claims payment process.
The product enables insurance providers to issue virtual payment cards to claimants immediately after approving a claim, eliminating the traditional reimbursement waiting period that often extends to several weeks.
Research from Sollers Consulting and Ipsos indicates that 63% of UK insurance customers prioritise rapid claims handling in their expectations from insurers, highlighting market demand for such solutions.