News
Tesla sales plunge: Biggest decline in history
Tesla sales plunged 13% in the first three months of this year, the largest drop in deliveries in its history, as backlash against CEO Elon Musk and growing competition took a large bite out of demand for its EVs.
Tesla reported Wednesday that it delivered 336,681 cars in the quarter, 50,000 fewer vehicles compared to the first three months of last year. The results were the company’s worst sales in nearly three years.
Tesla has faced protests outside its showrooms from those opposed to the actions of Musk in one of his other roles as the head of the Department of Government Efficiency, and the policies of Donald Trump’s presidential administration. There have also been instances of vandalism against Tesla facilities, including its charging stations, as well as some cars. All these incidents may have discouraged some potential Tesla buyers from going ahead with their purchases.
Research
Drowsy driving increase likelihood of accidents, Erie says
A recent survey sponsored by Erie Insurance found that 14% of Americans have admitted to falling asleep behind the wheel, increasing the likelihood of both single-vehicle and multi-vehicle accidents, which presents clear risks for insurers.
According to the Centers for Disease Control, adults should get at least seven hours of sleep per night to maintain proper cognitive function and alertness.
However, the Erie survey found that many Americans fall short of this guideline. Over half (54%) of respondents reported getting fewer than seven hours of sleep, with about 11% getting four or fewer hours. This lack of sleep can lead to impaired thinking, reduced alertness, and heightened drowsiness, all of which contribute to a greater likelihood of accidents and insurance claims.
From an insurance perspective, this increases the frequency and severity of claims, as sleep-deprived drivers are more likely to cause accidents. In turn, insurers may face rising costs associated with higher accident rates and more serious collisions.
Pie Insurance 2025 State of Workplace Safety Report: 75% of Small Businesses Experienced Workplace Injuries --Half Reported as Preventable
Pie Insurance, an insurtech specializing in commercial insurance for small businesses, today released its 2025 State of Workplace Safety Report, offering new insights into the evolving safety landscape for small businesses across the United States.
This year's report analyzes data from over 1,000 small business owners and decision-makers, uncovering how businesses are responding to shifts in safety trends including rising mental health challenges, preventable injuries, employee resistance, and the accelerating adoption of AI-powered safety technology.
The Cost of Inaction: Workplace Injuries Are a Growing Financial Burden
Workplace injuries remain a significant challenge, with 75% of small businesses reporting incidents in the past year—half of which were reported as preventable. The report highlights the financial toll that workplace incidents can take with more than 30% of small businesses reporting over $20,000 on injury-related costs in the past year. On average, injuries resulted in four lost employee workdays and three full business days of disruption annually.
Commercial vehicle accidents are another costly workplace safety concern with 42% of businesses with commercial vehicles reporting auto-related incidents in the past year, each costing an average of $5,725 per accident. However, based on survey findings, if small businesses could prevent half of workplace injuries, the average annual out of pocket savings (workers' compensation, medical expenses, and/or legal costs) could reach up to $10,000 or more.
InsurTech/M&A/Finance💰/Collaboration
Verisk acquires Nasdaq subsidiary Simplitium Limited
Data analytics and technology provider Verisk has acquired Nasdaq subsidiary Simplitium Limited, which owns and operates Nasdaq Risk Modelling for Catastrophes (NRMC).
Verisk described NRMC as a SaaS platform fostering an open ecosystem where specialised model partners share models, hazard data, and analytics to help bridge the global insurance protection gap.
Built on Open Standards, the platform is said to standardise and streamline data exchange, enabling re/insurers to refine their catastrophe risk strategies with greater precision and efficiency.
“NRMC is powered by the OASIS Loss Modelling Framework, the industry standard for open-source catastrophe risk modelling, and delivered as a cloud-based service. With access to a wide array of models and support for in-house developed models, clients will be able to evaluate more views of risk, look at potential losses through different model lenses and apply the models that align with their business needs,” Verisk added.
Eberl Claims Service Expands with Strategic Acquisition of Bees360’s Drone-Based Property Claims Inspection Services
Eberl Claims Service has expanded its technology-driven claims solutions with the acquisition of Bees360’s advanced drone based residential and commercial property claims inspection services.
The relative strengths of these two organizations combine to launch e360 – Eberl’s comprehensive field inspection service empowered by advanced property inspection workflows, drone data capture technology, and AI-powered damage assessment analytics.
“This partnership marks a transformative moment for the claims industry. Together, e360 is setting new standards for service delivery, empowering insurance…”
“This acquisition and the formation of e360 is a technology supercharger for Eberl’s claims ecosystem. It’s a game-changer that empowers us to help carriers…”
e360 revolutionizes property claims inspections by integrating Bees360’s cutting-edge claims workflows and technology with Eberl’s proven expertise in claims adjusting, property inspection, damage estimatics, and rapid response at scale. e360 promises to elevate the efficiency, accuracy, and scalability of property insurance claims handling.
RYZE Claim Solutions Acquires Leading Edge Claims of Texas, Expanding Its National Footprint
RYZE Claim Solutions, a rapidly growing full-service claims management company, today announced the acquisition of Leading Edge Claims Service, a highly regarded firm based in Southlake, Texas. This strategic move further strengthens RYZE’s position in the industry, reinforcing its long-term vision for the continued expansion of its business offerings and thoughtfully growing the RYZE platform through a targeted M&A strategy.
"Leading Edge Claims Service has built a reputation for providing top-tier service to insurers, making it an ideal fit for RYZE," said Tony Grippa, Executive Chairman of RYZE Claim Solutions. "Troy Hansen and his team have cultivated a culture of integrity, precision, and customer-first service that aligns seamlessly with our mission. Together, we are poised to set new standards in claims management, leveraging our technology, including our proprietary AI-driven tool, RYZEQAI, to enhance efficiency and accuracy for our clients."
Leading Edge will operate as a division of RYZE while maintaining its strong leadership, with company founder and President Troy Hansen continuing to lead operations.
FurtherAI gets $4M in funding to further AI automation in the insurance sector
FurtherAI Inc., an artificial intelligence startup that’s focused on furthering automation in the insurance industry, has gotten the money it needs to do that after closing on a $4 million round of funding.
Today’s round was led by Nexus Venture Partners, which invested via its $700 million AI-dedicated fund, and saw participation from a host of other backers, including Y Combinator, ConvergeVC, Pioneer AI Fund, South Park Commons and Xceedence.
The startup is developing a range of AI-powered agents designed to help insurance firms out by automating various mundane, time-consuming and likely mind-numbingly boring tasks involved in the underwriting and claims processing business.
FurtherAI makes some big claims, saying that its AI agents have shown 140% greater accuracy compared to humans manually processing insurance claims. It says its AI agents can quickly and easily integrate with insurer’s software platforms thanks to its innovative “LEGO block-style design.”
According to the startup, its AI agents are providing instant relief for insurers in an industry that’s challenged by rising costs, high loss ratios and a shrinking talent pool. It reckons its agents have already made a significant impact too, helping its early adopters to underwrite a combined $15 billion in premiums since its launch last year.
FurtherAI co-founder and Chief Executive Aman Gour said insurers, for years, have been accused of being slow to embrace innovation, and that many questioned his focus on the industry because of this.
“But we saw it differently,” he said. “Insurance isn’t inherently sluggish or mundane, but it needed more advanced technology to make a difference. With large language models, we’re unlocking the industry’s true potential.”
11 InsurTechs join Lloyd’s Lab Accelerator programme
Insurance and reinsurance marketplace Lloyd’s has revealed the 11 InsurTechs that have secured a place in the 14th Cohort of the Lloyd’s Lab Accelerator programme.
The teams chosen include Faura, Satva Trust, QualRisk, Ocean Ledger, Novella, Testudo, Circuit Security, GWT Insight, Unwind Finance, 7Analytics AS, and reinsurance technology platform Supercede Technology, a name that will be familiar to regular readers of Reinsurance News.
The successful participants were reportedly selected following a competitive Pitch Day, where Lloyd’s CEO John Neal emphasised the critical role of insurance in addressing emerging risks and building more resilient societies across the globe.
Lloyd’s explained that Cohort 14 introduces a new theme, Shaping the Future of Reinsurance in Bermuda, developed with the Bermuda Monetary Authority (BMA) to strengthen collaboration between the insurance and reinsurance hubs of Lloyd’s and Bermuda.
The cohort also advances two existing themes: Data, Models & Processes, which enhances underwriting efficiency through advanced analytics, and New Products, which develops solutions to tackle underinsurance and improve coverage.
Commentary/Opinion
Lemonade: 700K Customers on the Car Insurance Waitlist
While Allstate’s CEO Tom Wilson named GEICO and Progressive when asked about the ability to grow auto insurance in 2025 as competitors do the same, no one on Allstate or Progressive’s earning calls addressed competition from Lemonade.
The insurtech recently announced the launch of Lemonade Car in the state of Colorado. At the same time, the company announced a significant milestone in its history—surpassing $1 billion in in force premiums across all lines. In force premium is a measure of annualized premiums that the insurtech tracks on a regular basis. During a fourth-quarter earnings conference call in late February, Lemonade executives guided toward $1.2 billion of in force premiums by year-end 2025, or a 28% jump over last year. MORE
Parametric Insurance Is Coming Fast. The Real Differentiator? Customer Experience
As climate risk accelerates, so does the urgency for innovative insurance products that can scale — quickly, affordably, and reliably — into catastrophe-prone areas. That’s why parametric insurance is gaining ground. It’s not just a product innovation; it’s a lifeline for policyholders and a strategic lever for carriers and MGAs navigating shrinking risk appetites.*
But here’s the truth the industry can’t afford to ignore: parametric insurance only works when the customer experience is bulletproof.
Josh Hall, Head of Sales & Business Development @ ManageMy | Sales Strategy | #Insurtech
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Announcements
Guidewire Unveils Mammoth Platform Release | Insurance Innovation Reporter
The new release adds tools for predictive analytics, faster claims, and tailored policy coverage.
Guidewire (San Mateo, Calif.) has announced the general availability of its Mammoth release, introducing a suite of enhancements designed to improve insurer agility, speed to market, and the overall customer experience. The release supports both personal and commercial lines and introduces new capabilities across the policy lifecycle and claims process, according to the vendor.
“Mammoth continues our momentum of transforming how insurers meet policyholder needs,” says Diego Devalle, chief product development officer, Guidewire. “With new features that speed product development, streamline claims and policy management, and increase operational efficiency, Mammoth will help insurers be more nimble and responsive to changing market needs.”
Tariffs/Insurance
How tariffs and inflation are impacting builder's risk insurance
Contractors and insurers are adjusting to continued volatility
Tariffs and inflation have long been pressing concerns for the construction industry, but in recent years, their impact on builder’s risk insurance has become even more pronounced. As material costs fluctuate and supply chain issues persist, contractors and insurers alike are reconsidering approaches to risk mitigation, pricing, and project planning.
The uncertainty surrounding tariffs has made it difficult for contractors to project costs with any degree of confidence. That uncertainty is compounded by inflation, which has driven up the price of materials, labor, and transportation.
Brian Cooper (pictured), US national construction practice leader at Gallagher, emphasized that the ability to anticipate changes is now a critical factor in successful project execution. Cooper told Insurance Business that negotiations over price escalation clauses have become the norm.
“These clauses adjust payments if material costs increase due to tariffs, inflation, or supply chain disruptions. This prevents contractors from shouldering all the financial risk themselves,” he said.