News
State Farm Asks to Increase California Insurance Prices Again
State Farm is asking for another increase less than a week after being granted a 17 percent rate hike for its homeowners' policies in California.*
California insurer State Farm is asking regulators for another rate hike, less than a week after it was granted permission to temporarily charge an extra 17 percent for homeowners' insurance policies.
The company, the largest home insurer in the state, wants the California Department of Insurance (CDI) commissioner Ricardo Lara to approve an additional 11 percent increase for homeowners, and significant hikes for renters and condo owners, according to the San Francisco Chronicle.
In a statement to Newsweek, a spokesperson for State Farm General Insurance Company said: "While we are pleased that Commissioner Lara approved the interim rate of 17 percent for State Farm General Insurance Company, this change only addressed part of the original request of 30 percent filed in June 2024.
"The overall request of 30 percent would not be on top of the 17-percent interim rate change. State Farm General is still pursuing the full rate request. A hearing on the full rate request is expected to be held this year."
P&C sector steady but valuation becoming less attractive: Morgan Stanley
The broader property and casualty (P&C) insurance trend is expected to remain steady through 2025, with personal lines and brokers likely leading on the earnings growth front, however, sector valuations are becoming less attractive as earnings become increasingly bifurcated, according to analysts at Morgan Stanley.
While the P&C sector has held up better than expected since Liberation Day, analysts believe its valuation relative to the S&P 500 is not as attractive.
“A notable callout would be the insurance brokers, who are likely to see more earnings volatility, higher competition, and a more mixed pricing environment, but valuations remain high when compared to the past 10 years,” said Morgan Stanley.
“The key debate should shift towards the ability to maintain margin and growth in order to justify the current valuation. For now, we continue to prefer personal lines for the improving fundamentals, and reinsurers for attractive valuation.”
Analysts highlighted continued growth and margin expansion in personal lines, which they believe will be durable through 2025, supported by earned pricing. This is being offset by a weaker commercial underwriting environment, driven by elevated social inflation concerns and mixed pricing dynamics.
Research
LexisNexis® U.S. Insurance Demand Meter Shows Steady Momentum with "Sizzling" U.S. Consumer Auto Shopping and "Hot" New Policy Growth
After a three-quarter streak of "Nuclear" activity, U.S. consumer auto insurance shopping remained elevated in the first quarter of 2025, according to the latest LexisNexis® Risk Solutions U.S. Insurance Demand Meter. U.S. auto policy shopping growth reached "Sizzling" at 16%, and new policy growth came in "Hot" at 8.4%. Both readings represent a slight cooling from Q4 2024.
- Shoppers Stay Active: As of March 31, 2025, 46% of policies-in-force were shopped at least once in the past 12 months.
- Shopping and New Policy Growth Remain Elevated: Auto insurance shopping grew 16% year-over-year in Q1 2025, while new policy growth reached 8.4%.
- Tax Season and Tariff Concerns Drive Behavior: Consumer activity was fueled by tax refund-driven shopping and new vehicle purchases, potentially ahead of anticipated tariff impacts.
- Older Consumers Lead the Charge: Policyholders aged 66 and older were the most active demographic, with year-over-year shopping growth of 19.7%.
Key Observations
"Macro forces like tax refund season and tariff concerns are helping shape consumers' auto insurance shopping behavior in meaningful ways," said Jeff Batiste, senior vice president and general manager, U.S. auto and home insurance, LexisNexis Risk Solutions. "We also are seeing traditionally stable, high-value customer segments become more active in the market. That underscores a potential need for insurers to re-evaluate how they engage and retain policyholders who may have previously been considered low churn risks."
45.1 Million Americans Expected to Travel Domestically for Memorial Day - CollisionWeek
Road trips expected to set new record as 87% of travelers will travel by car.
AAA projects 45.1 million people will travel at least 50 miles from home over the Memorial Day holiday period from Thursday, May 22 to Monday, May 26. This year’s domestic travel forecast is an increase of 1.4 million travelers compared to last year and sets a new Memorial Day weekend record. The previous record was set back in 2005 with 44 million people. Despite concerns over rising prices, many Americans say they’re taking advantage of the long holiday weekend to spend time with loved ones,
AAA projects 39.4 million people will travel by car over Memorial Day weekend. That’s an additional one million travelers compared to last year. Driving is the preferred mode of transportation during holiday travel periods, with 87% of Memorial Day travelers choosing to take road trips. This year, drivers have the benefit of cheaper gas prices. Last Memorial Day, the national average for a gallon of regular was $3.59. This spring – thanks to lower crude oil prices – gasoline prices haven’t seen typical seasonal spikes. With the unofficial start of summer kicking off the busy driving season, demand is expected to rise, and pump prices may creep up along with it. Gas prices typically peak in the summer and start coming down when schools go back in session in the fall.
Climate/Resilience/Sustainability
What journalists need to know about climate risk data firms
For several reasons, news reporters covering the climate occasionally cite data from private firms that analyze the risks of severe weather damaging buildings, roads and other infrastructure across both large and small geographic areas.
First, those firms offer data at a level of granularity, sometimes down to specific addresses, that is largely unavailable from federally funded and produced climate data.
Second, some of those firms offer easy-to-understand risk scores.
A particular neighborhood or property might have a flood risk score of 4 out of 10, for example, or a wildfire risk score of 1 out of 10.
Also, some firms will work with reporters to give them free access to data that otherwise sits behind a paywall.
But, as journalists use those analyses, they should understand this burgeoning market for paid climate data and be willing to ask questions of these companies — particularly how they arrive at their risk assessments and how they are handling the potential for federal climate research being severely curtailed under the second administration of President Donald Trump.
AI in Insurance
The Implications and Scope of the NAIC Model Bulletin on the Use of AI by Insurers | Insights | Holland & Knight
The National Association of Insurance Commissioners' (NAIC) model bulletin governing the use of artificial intelligence (AI) by insurers provides guidance on the legal and ethical use of AI within the insurance industry, stressing the principles of transparency, fairness and accountability. Since the NAIC published the model bulletin at the end of 2023, 24 states have adopted it, and other states have enacted regulations or promulgated other guidance addressing similar topics.
The model bulletin states that insurers must adopt, implement and maintain a documented AI program (an AIS Program) to support the responsible use of AI and mitigate the potential risk of inaccurate or discriminatory decisions, particularly when AI is used in regulated processes. The model bulletin provides guidelines for developing an AIS Program and requires auditing processes, clear and transparent governance frameworks, robust risk management and internal controls, and third-party vendor management and oversight.
As outlined in the model bulletin, an insurer's AIS Program should be designed to prevent violations of relevant insurance laws, regulations and guidance, including laws addressing unfair trade practices and unfair discrimination, and be adequate given the degree and nature of risk posed by the AI to consumers. The model bulletin also recommends that insurers adopt verification and testing methods to identify errors, bias and unfair discrimination in AI models and systems. MORE
Automating Insurance Claims With AI And Identity Management
The intersection of agentic AI and identity management is an insurance tipping point.
The insurance industry, previously notorious for overwhelming paper documentation, lengthy claim payout cycles and rigid identification verifications, is being revolutionized by artificial intelligence (AI). At the forefront of this revolution is the groundbreaking identity management and agentic AI solution combination that sets a new standard for claims automation and is reengineering customers' experiences.
Revolutionizing Insurance Through Agentic AI
Agentic AI, the state-of-the-art AI that learns, adapts and makes intelligent decisions independently, is leading this revolution. Unlike the conventional automated systems bound by static rules, pre-programmed agentic AI learns information dynamically, responds to dynamic circumstances and actively optimizes processes. Amid the complexity of insurance claims, where accuracy, timing and certainty are paramount, this is groundbreaking.
Automating Identity Management For Secure Claims Processing
Identity verification is key to insurance claims workflows, with rigorous verifications to avoid fraud, ensure compliance and protect personal information. Agentic AI solutions extend such processes via real-time, dynamic identity verification and risk analysis.
Balaji Adusupalli is an assistant vice president at Chubb who leverages AI-enabled advancements to transform digital ecosystems.
Autonomous Driving/Insurance
Autonomous vehicles will completely change car market, says Fmr. Tesla President Jon McNeill
Jon McNeill, Former Tesla president and GM board member, joins ‘Money Movers’ to discuss the road ahead for Tesla and autonomous vehicles.
AI Traffic Enforcement Cuts Crashes, Study Reports | Mirage News
New INFORMS Management Science Study Key Takeaways:A city using AI-powered traffic cameras can prevent hundreds of accidents and injuries annually
As cities worldwide seek effective strategies to address rising traffic fatalities, a new study published in the INFORMS journal Management Science reveals AI-powered traffic cameras offer a breakthrough solution – not only catching violations, but meaningfully improving overall road safety.
"Our study shows that AI-powered traffic cameras don't just document violations – they promote safer driving behavior and significantly reduce accidents, even in nearby areas without cameras," says Zhi (Aaron) Cheng, at the London School of Economics.
The study, "Automated Enforcement and Traffic Safety," conducted by Cheng, alongside researchers from Sun Yat-sen University, and the University of Wisconsin–Madison, finds that advanced cameras using artificial intelligence and continuous video recording can reduce traffic accidents far more effectively than conventional enforcement systems.
Analyzing data from a major metropolitan city in China, the researchers estimated that citywide deployment of AI-enabled cameras could have prevented approximately 1,190 accidents, 496 injuries or fatalities, and nearly $1 million in property losses per year. Importantly, the study found that the safety improvements did not merely shift accidents to nearby intersections – a common concern with older traffic enforcement technologies.
Three main factors explain the success of AI-powered enforcement:
- Smarter detection of a broader range of unsafe driving behaviors.
- Real-time video recording that supports more accurate accident investigations.
- Behavioral deterrence, encouraging drivers to adopt safer habits even outside monitored zones.
InsurTech/M&A/Finance💰/Collaboration
Munich Re Ventures Celebrates Ten Year Anniversary with New $125 Million Fund from HSB
Munich Re Ventures (MRV), the venture capital arm of Munich Re Group, today announced a new $125 million fund from its founding limited partner, HSB, which will invest in Built World startups focusing on equipment and technology that de-risks and optimizes performance in property, industry, and related supply chains, as well as cybersecurity and technologies driving toward a resilient future. This new fund, the second from HSB and the fifth overall for the firm, brings MRV's assets under management to $1.2 billion.
With its 150-year history, and as part of Munich Re, HSB blends its engineering expertise, technology, and data to craft inventive insurance and service solutions for existing and emerging risks posed by technological change.
"Ten years ago, it was HSB Fund I that provided the initial capital which founded Munich Re Ventures as a firm," shares Jacqueline LeSage, Managing General Partner of Munich Re Ventures. "Now, a decade on, we feel immense pride in the accomplishments of the incredible founders we've supported, as well as the partnerships they've built with HSB that are accelerating new visions for insurance. We are more committed than ever to backing the companies and teams that are most thoughtfully innovating at the intersection of risk and technology."
Several investments from the inaugural HSB Fund I ultimately went on to reach unicorn status, including cyber insurance and security (InsurSec) provider, At-Bay, industrial manufacturing intelligence company, Augury, and telco disruptor, Helium Mobile. IoT data analytics company, Mnubo, was also acquired by AspenTech in 2019.
Financial services firm Acrisure valued at $32 billion in Bain-led funding round | Reuters
Summary
- Fundraise of $2.1 billion, at valuation 40% above past round
- Firm will use funds to invest further in financial products outside insurance
- Company keeping options open on future public listing
Acrisure has raised $2.1 billion from Bain Capital and other investors, its CEO told Reuters on Tuesday, valuing the firm at $32 billion and allowing it to fund an expansion into products beyond its core insurance brokerage business.
Grand Rapids, Michigan-based Acrisure was founded in 2005 as an insurance broker, but has in recent years pursued a strategy that supplements its business with a range of other products and services for small and medium-sized companies, including payroll, cybersecurity and employee benefits.
KISTERS brings proven US hail detection system to Europe through Meteomatics partnership.
KISTERS launches HailSens360 across Europe, combining real-time hail sensors with hyperlocal forecasts and nowcast alerts to protect solar, crops, and insured assets. Powered by Meteomatics — a leading European weather data provider — the solution overcomes Europe's fragmented weather data landscape, delivering actionable hail intelligence already trusted in the US.
HailSens360 is an integrated sensor and cloud-based hail decision support system, combining proprietary 48-hour forecasts, 60–90-minute nowcasts, real-time hail observations, and historical data to help protect assets before, during, and after hailstorms
HailSens360 combines state-of-the-art hail sensor with high-resolution forecasting, nowcast alerts, and real-time decision support — all-in-one integrated solution. Already used across solar energy, agriculture, and insurance sectors in US, it enables organisations to make faster, better-informed decisions in face of hail risk.
This marks a significant milestone for the renewables, agriculture, and insurance sectors across Europe, where risk and cost of hail damage continues to climb — yet timely, localised, high-resolution hail data remains difficult and expensive to access.
Unlike the US, where open weather data is widely available, the European meteorological data landscape has long been fragmented and despite EU Commission directives aiming at more open weather data, still costly. KISTERS chose to partner with Meteomatics — a Swiss-based leader in high-resolution weather intelligence — precisely because of their proven ability to navigate this complexity.
Claims
APCIA: Record Shows ‘Minimal Complaints’ on Hurricane Milton, Helene Claims
The American Property Casualty Insurance Association (APCIA) chimed in to a recent Senate subcommittee hearing to defend the industry’s response to claims following hurricanes Milton and Helene.
“The vast majority of claims from Hurricanes Milton and Helene have been settled, totaling more than $8 billion paid to policyholders,” said David A. Sampson, president and CEO of industry trade association APCIA. “There were minimal complaints on those claims, with less than 1% of claims generating any complaints to regulators.” FULL ARTICLE
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