Commentary/Opinion
A Coming Tidal Wave of Demographics | Insurance Thought Leadership
Insurers need to shift their geographic focus toward cities and high-growth countries, reinvent service models and talent strategies and form key partnerships.
A boss of mine once observed that he'd benefited repeatedly through his life and career because he was born just a few years before the Baby Boom began in the U.S. after World War II. He applied for college when there was little competition and went to Penn, then had no trouble finding a good job. He bought a house and moved to a lush suburb before the horde of Boomers had the inclination or the money. He developed enough management experience that, when the Boomers did flood into the work force, he moved into supervisory roles that eventually took him to the top of a large consulting firm.
His experience came to mind as I read through Capgemini’s World P&C Insurance Report 2025, which makes a compelling case about how global demographic shifts are going to require major changes in insurance over the next 25 years and beyond. The report states:
"These shifts are... a call to redesign how risk is assessed, products are structured, and portfolios are shaped."
Paul Carroll, editor-in-chief, Insurance Thought Leadership
News
P&C Market Shows Softening in Q1 with Premium Increases Down to 4.2%: CIAB Survey - Risk & Insurance
Medium-Sized Accounts Experience Largest Decrease While Third-Party Litigation Funding Impacts Casualty Lines, CIAB research finds.
The commercial insurance market showed clear signs of softening in Q1 2025, with average premium increases across all account sizes falling to 4.2% from 5.4% in Q4 2024, according to The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report.
The insurance market’s softening trend is gaining momentum as premium increases continue to moderate across most lines and account sizes, according to the survey of CIAB member firms. Medium-sized accounts experienced the most significant slowdown, with average premium increases dropping to 3.7% from 6.4% in the previous quarter—a 42% decrease. Large accounts saw increases decline to 5.3% from 6.3%, while small accounts maintained a steady 3.6% increase.
Five lines of business recorded actual premium decreases in Q1, according to the survey:
- Workers’ compensation, down 2.6%.
- Cyber, down 2.1%.
- Directors and officers liability (D&O), down 1.6%.
- Employment practices liability insurance (EPLI), down 0.4%.
- Terrorism coverage, down 0.4%.
This represents an expansion from the four lines (cyber, D&O, EPLI and workers’ compensation) that decreased in Q4 2024, CIAB noted.
Commercial property, which had consistently shown some of the highest premium increases throughout 2023 and 2024, demonstrated significant moderation with just a 2.9% average increase this quarter—less than half of Q4’s 6.0% increase, the survey found.
Tesla and Waymo Are Poised to Poke Buffett's Golden Goose: Is Berkshire Hathaway Still a Safe Stock?
GEICO is the biggest part of Berkshire's core property and casualty business. Robotaxis from Tesla and Waymo could dramatically disrupt GEICO's business, especially if they replace personal car ownership.
Don't expect Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to skip a beat when Warren Buffett hands the reins over to Greg Abel as CEO next year.
Buffett even told Berkshire shareholders at their annual meeting earlier this month that the company's prospects "will be better under Greg's management than mine."
However, that doesn't mean that Berkshire couldn't still face a bumpy road ahead. Tesla (NASDAQ: TSLA) and Google parent Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Waymo unit are poised to poke Buffett's golden goose.
What is Buffett's golden goose? It's Berkshire Hathaway's insurance business -- especially GEICO. Berkshire first initiated a position in GEICO in 1976 and wholly acquired the company two decades later. GEICO now ranks as the third-largest auto insurance company in the U.S., with a market share of around 12.3%.
In his latest letter to shareholders, Buffett said that property and casualty (P&C) "continues to be Berkshire's core business." More than 10% of the conglomerate's total earnings last year stemmed from insurance premiums. Investment income from Berkshire's insurance business generated another 15% of total earnings.
Buffett said at the recent annual shareholder meeting that GEICO's auto insurance "is by far the largest item in the property & casualty insurance business. It's huge." Ajit Jain, who heads Berkshire's insurance operations, added that "in addition to underwriting profit, GEICO provides $29 billion of float."
GEICO has been a remarkably stable business. Buffett noted: "The interesting thing about auto insurance is that we're selling the same product as in 1936 when the company was started. We're just being more sophisticated about pricing it." However, that stability could soon be rocked.
A coming robotaxi revolution
During the shareholder meeting, Buffett and Jain were asked how autonomous vehicles might disrupt GEICO's auto insurance business. Jain responded, "There's no question that insurance for automobiles is going to change dramatically once self-driving cars become a reality." He's right, except for the future tense: Self-driving cars are already a reality.
Research
Auto Insurer Websites and Apps Become Battleground for New Customers as Policy Shopping Activity Skyrockets, J.D. Power Finds
Nationwide Ranks Highest in Service; Amica, Erie Insurance Rank Highest in a Tie in Shopping
More than half (57%) of auto insurance customers have actively shopped for a new policy in the past year, the highest shopping rate ever recorded by J.D. Power, and that’s putting more pressure than ever on digital channels, which have become the primary tool through which customers purchase insurance.
According to the J.D. Power 2025 U.S. Insurance Digital Experience Study, 47% of auto insurance shoppers now purchase their policies through digital channels, but the experiences they are having on those websites and apps is notably uneven from one insurer to the next.
“The primary communications conduit customers now have with their auto insurer is a website or an app, so that’s really ramped up pressure on insurers to put their best foot forward on digital properties,” said Eric McCready, director of digital solutions at J.D. Power. “Some insurers are doing this much better than others. Particularly in quoting new policies and comparing prices and coverages, the data shows a stark divide between top and bottom performers, which could have serious effects on new business growth during this period of heightened shopping activity.”
The U.S. Insurance Digital Experience Study evaluates the digital consumer experiences of both property and casualty (P&C) insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities. It also examines the functional aspects of the service and shopping experiences. Service experience examination includes desktop web, mobile web and app in four factors: design; information; tools/capabilities; and system performance. Shopping experience examination includes desktop and mobile web in four factors: design; information; quoting; and system performance. The study was conducted in collaboration with Corporate Insight, the leading provider of competitive intelligence and user experience research to the financial services and healthcare industries.
“Across both shopping and servicing functions, delivering a seamless digital experience is a win-win for insurers,” said Justin Suter, research manager at Corporate Insight. “Customers have shown that they want to interact with their insurers digitally, and when insurers deliver a good experience, they tend to stay on the digital channel, which delivers a better all-around experience at a lower administrative cost for the insurer.”
TransUnion: Higher-risk consumers fuel double-digit jump in Q1 car-insurance shopping | Auto Remarketing
Fueled in part by what analysts deemed to be higher-risk consumers, auto insurance shopping in the first quarter increased 10% compared to the same period in 2024, according to TransUnion research.
And Mercury Insurance reiterated that credit scores can be one of the top five factors impacting rates.
While the trend of elevated shopping levels has been consistent for some time, TransUnion pointed out a key difference that emerged over the last quarter in the auto insurance space.
Analysts found that higher-risk consumers are once again the most active shoppers for the first time since Q4 2021. TransUnion indicated insurers may have returned to traditional practices of focusing rate increases on higher risk segments, rather than across the board.
As a result, analysts said higher-risk customers are still shopping for lower rates, while mid- and low-risk customers may have seen their rates stabilize. These findings and more are included in TransUnion’s latest quarterly Insurance Personal Lines Trends and Perspectives Report, which is available here.
“As rates have settled for the majority of auto insurance customers, we are experiencing a return to historical insurance shopping patterns, which correlate price sensitivity closely to relative insurance risk,” said Patrick Foy, senior director of strategic planning for TransUnion’s insurance business.
“However, uncertainty in the cost and availability of parts for vehicle repairs, could eventually lead to a return of broad-based price increases, and weather-related catastrophes — while still unpredictable — have also become a far more common and costly phenomenon,” Foy said in a news release.
Meanwhile, Mercury Insurance acknowledged prices for just about everything are on the rise these days and that includes car insurance.
Telematics, Driving & Insurance
Dream Payments launches Insurance Payment Network Across North America - Insurance-Canada.ca - Where Insurance & Technology Meet
Insurers can now collect and disburse payments across the U.S. and Canada through a single payments platform, the DreamPay Insurance Payment Hub, leveraging J.P. Morgan Payments’ capabilities
Dream Payments is pleased to announce it has launched the DreamPay Insurance Payment Hub — a two-way insurance payment network operating seamlessly across North America, leveraging J.P. Morgan Payments’ capabilities. For the first time, insurers can accept premiums from policyholders in both the U.S. and Canada, and issue claims payments to individuals and businesses of every size, using digital or physical methods, all in one platform.
A Network That Reaches Everyone, Everywhere
With the DreamPay Insurance Payment Hub, insurers now gain access to the most expansive insurance payment network on the continent. The platform connects to over 350 million individuals and more than 30 million businesses across North America. From policyholders in Toronto to service providers in San Francisco, insurers can initiate and receive payments across every relevant rail — from real-time payments and ACH in the U.S., to EFT and cheques in Canada — and even reach any address on the continent for physical check delivery.
InsurTech/M&A/Finance💰/Collaboration
Insurtech investment roars back in Q1
After several quarters of stagnant growth and investor fatigue, the insurtech sector roared into 2025 with renewed purpose, thanks in large part to a technology that’s no longer futuristic — just fundamental.
Global insurtech funding rose 90.2% in the first quarter of 2025 to $1.31 billion, marking the sector’s strongest performance since the third quarter of 2022, according to Gallagher Re’s latest Global InsurTech Report. The rebound was led by a wave of investment in AI-powered platforms, especially in property and casualty insurance, as more insurers look for practical ways to automate, improve, and compete.
In all, 61% of insurtech deal volume in the first quarter went to AI-centered startups. That translates to $710.9 million across 60 transactions—many of them aimed at underwriting, claims, and real-time risk modeling.
“This feels less like a funding bounce and more like a market correction—one that favors grounded, deployable technologies over shiny concepts and unicorn dreams,” said Brian McLoughlin, co-founder of MTech Capital, in the report.
The shift reflects an industry now well into its second decade of experimentation with technology—and finally settling into what may be a more sustainable, albeit narrower, growth path.
An 'insurtech spring'?
The leap in capital deployment marks a sharp reversal from the industry’s sluggish finish to 2024, when funding dipped to $690 million amid investor caution and a slowdown in mega-rounds. Analysts are now hailing a possible “insurtech spring,” with signs that a more sustainable, tech-driven transformation is underway across property and casualty (P&C), life, and health insurance markets.
“This is not just a rebound,” said Dr. Andrew Johnston, Global Head of InsurTech at Gallagher Re and editor of the report. “We are seeing an evolution in maturity, focus, and execution—especially around AI. What’s changed is that the capital is being allocated with much greater discipline.”
Nearmap Acquiring itel to Add to Property Intelligence, Underwriting And Claims Services
[Ed. Note: Recall Nearmap acquired Betterview, a complementary Property Intelligence and Risk Management Platform in 2023]
Andy Watt, Nearmap’s CEO, will serve as CEO for the combined company, while itel CEO Brian Matthews will continue to lead itel through closing and will serve on the board of directors. The leadership team will consist of individuals from both companies. Thoma Bravo, a software investment firm, will be the lead strategic investor in the combined company.
Completion of the deal is expected in the second quarter and is subject to customary closing conditions.
Jacksonville, Florida-based itel provides property claims services, including building material pricing and repair-versus-replace analysis.
Nearmap, which has its home office in Australia and its North American office in Lehi, Utah, is a provider of location intelligence from camera to capture to processing.
Announcements
Here For It: Enterprise Launches First Global Brand Marketing Campaign
Multilingual campaign features Enterprise team members delivering a range of mobility solutions to customers around the world. Here For It
For the first time, the Enterprise brand is launching a global marketing campaign in English, French, German, Spanish and French Canadian featuring a wide range of creative including TV, online video, digital, social and audio spots.
"Here For It" showcases real Enterprise team members delivering tailored solutions for customers through the extensive offerings of Enterprise-branded business lines. Enterprise is the flagship brand of Enterprise Mobility, which is a leading provider of mobility solutions.
Ads begin running in the U.S. this week with creative in the U.K. to launch in June, and other languages and markets to roll out shortly thereafter. From commercial clients and insurance replacement customers to business and leisure travelers, the content is focused on bringing to life the customer service ethos that has defined Enterprise for nearly 70 years.
The creative coincides with the start of the busy summer travel season and reinforces the many ways Enterprise is poised to support its broad customer base.
"Long recognized as a global leader in car rental, 'Here For It' demonstrates how our extensive neighborhood network, airport locations and wide range of mobility lines create new opportunities for us to serve our customers," said Kyle Sanborn, Vice President of Global Brand Strategy and Marketing Activation at Enterprise Mobility. "The Enterprise commitment to customer service excellence takes center stage in this campaign, demonstrating how our team members go the extra mile to tailor solutions that meet the ever-growing needs of leisure, commercial and replacement customers."
Webinars/Podcasts/Interviews
Collaboration Between Collision Repairers, Insurers, Others Could Improve Outcomes for Everyone - Autobody News
SambaSafety's second annual Driver Risk Report looked at how inflation, driving behavior and other factors intersect.
SambaSafety recently released its second annual Driver Risk Report: Current Trends Shaping Roadway Safety, aimed at helping insurers and employers grapple with challenging market conditions, dangerous driving behaviors and escalating legal exposure by using data-driven risk management.
This year’s report drew on SambaSafety’s extensive network of more than 100 telematics integrations, thousands of court connections and nationwide motor vehicle record (MVR) and CSA data to deliver insight into the behavioral trends driving crashes and claims, exploring the distinctions between age groups, fleet sizes and industry segments.
Matt Scheuing, CEO of SambaSafety, spoke to Autobody News about some of the takeaways from the report for the collision repair industry.
People
Roots Appoints P&C Industry Veteran Robin Spaulding as Head of Insurance to Drive AI Transformation
Roots, creator of the agentic AI platform for insurance and developer of InsurGPT™, the world's first generative AI model purpose-built for insurance, today announced the appointment of Robin Spaulding as head of insurance. With more than 30 years of deep operational, consultative, and strategic expertise across the property and casualty (P&C) industry, Spaulding brings an unparalleled blend of direct experience and forward-thinking innovation to Roots' leadership team.
In her role, Spaulding will drive the continued evolution of Roots' insurance capabilities, with a focus on helping customers modernize claims and underwriting activities, optimize operations, and accelerate AI integration across the insurance value chain. She will collaborate closely with product, engineering, and customer success teams to ensure that Roots' offerings meet the complex needs of carriers, TPAs, and brokers as they navigate digital transformation, ultimately driving sales and enhancing buyer confidence.
"We are thrilled to welcome Robin to the Roots team," said Chaz Perera, co-founder and CEO of Roots. "She's seen every angle of the insurance industry—from the frontlines of claims to the executive suite and consulting boardrooms—and brings a rare ability to translate operational insight into transformative strategy. Robin's voice will be vital as we continue to expand the possibilities of agentic AI throughout the insurance sector."
Spaulding began her career as a claims representative trainee after earning a Bachelor of Science in Business Administration from Drake University. She rose through a series of increasingly senior leadership roles across insurance carriers, third-party administrators, and a managed care company, serving as a divisional vice president of claims. She worked for years as a consultant and global insurance expert, collaborating with C-level executives on strategy projects and system implementations. She helped insurers define future-state operating models, implement new technology platforms, and integrate AI into core operations.