Commentary/Opinion
The legacy cloud epidemic
Most insurance platforms were designed to operate from data centers.
Are you using cloud or just renting virtual servers? The difference matters. A lot. Most insurance platforms were never designed for the cloud. They were designed to operate from the insurer’s data centers.
Cloud providers such as Amazon Web Services (AWS), Azure and Google Cloudrent virtual servers that any software can install on including legacy insurance software. Many legacy providers are doing exactly this and calling it “cloud,” but it’s really legacy technology on a rented server.
This rented server approach isn’t without benefit but it misses most of what cloud has to offer.
The problem with “rented server” cloud upgrades Upgrading “rented server” cloud core systems is a complicated process that can take years and cost millions in service fees. That’s because these core systems have many customizations that need rewriting for the new version. Also, when upgrades aren’t backwards-compatible, the upgrade process can require complex synchronization with other systems.
With such slow and expensive upgrades, most insurers eventually freeze their system version, forgoing new features and fixes. As a result, they continue using outdated and unsupported software which limits agility, slows product development and raises security risks. To make matters worse, many deployments are already one or more versions behind before they’re even live in production.
Dan Woods, Socotra founder
Research
Is long-awaited insurance industry transformation arriving — finally?
The insurance industry is often said to evolve slowly — until it doesn’t. According to two new reports, that moment of rapid insurance industry transformation may be arriving now.
TransUnion’s Q2 2025 Personal Lines Trends and Perspectives report shows a near-term market in flux. Auto insurers are breathing a sigh of relief as profitability returns, while property carriers continue to struggle under the weight of rising claim costs, catastrophic weather losses, and premium fatigue. Meanwhile, ReSource Pro’s strategic outlook, Insurance in 2035, suggests that many of today’s market dynamics — from consumer shopping behavior to workforce turnover and digital risk exposure — are harbingers of deeper systemic change over the next decade.
Taken together, the two reports draw a picture of an industry straddling the present and the future, challenged to both maintain profitability today and reimagine its structure for tomorrow.
Market 'clearly in transition'
“The market is clearly in transition,” said Patrick Foy, senior director of P&C market strategy at TransUnion. “Premium increases have likely peaked, but rising costs for imports and auto repairs still threaten future loss ratios.”
After several turbulent years of correcting for underpriced risk, auto insurers have finally turned the corner on profitability. TransUnion’s Q2 report finds that while shopping activity is still elevated — up 10% year-over-year — the rate of premium increase has peaked. The focus is shifting to growth, with carriers ramping up acquisition efforts.
Marketing spend for auto products jumped 35.2% year-over-year in Q4 2024, with digital, email, and search channels seeing double-digit increases. The Northeast, in particular, led the nation in auto shopping activity in early 2025. States like Connecticut, New York, and New Jersey saw double-digit premium increases, prompting consumers to shop aggressively for better deals. READ ON
News
Travelers to Sell Its Canadian Personal Insurance Business and Majority of Its Canadian Commercial Insurance Business to Definity for US$2.4 B
[Ed. Note: Definity Financial Corporation is the parent company to some of Canada’s most long-standing and innovative property and casualty insurance brands and companies. These companies include Economical Insurance, Sonnet Insurance, Family Insurance Solutions, and Petline Insurance.]
Travelers will retain its market-leading surety business in Canada
The Travelers Companies, Inc. (NYSE: TRV) today announced that it has signed a definitive agreement to sell the personal insurance business and the majority of the commercial insurance business of Travelers Canada to Definity Financial Corporation (TSX: DFY) for approximately US$2.4 billion.
The purchase price represents a multiple of 1.8 times book value, adjusting for approximately US$0.8 billion of excess local capital which is being repatriated as part of this transaction in a tax-efficient manner. Travelers, which is the largest surety writer in North America, will retain its premier Canadian surety business.
“This transaction is a reflection of our steadfast commitment to disciplined capital allocation and long-term value creation,” said Alan Schnitzer, Chairman and Chief Executive Officer of Travelers. “The evolution of the Canadian market over the past decade has made Definity a natural long-term owner for this business, a view affirmed by the compelling value of their proposal. I am confident that our Canadian customers, brokers and colleagues will benefit from being part of one of the country’s leading and fully integrated property casualty insurers.”
Travelers expects to use approximately US$0.7 billion of the net cash proceeds of the transaction for additional share repurchases in 2026, while retaining the remainder to support ongoing operations and for general corporate purposes. The transaction and resulting share repurchases are expected to be slightly accretive to the company’s earnings per share in each of the next several years.
What’s in a Name? A Lot, According to Safelite - glassBYTEs.com
What’s in a Name? A Lot, According to Safelite
Safelite Auto Glass has sued an auto glass company with a name one letter different from its own. The national brand has accused Wisconsin-based Safelife Auto Glass of trademark infringement.
According to the legal complaint Safelite filed on March 25, former Safelite employee Obed Alarquan registered Safelife Auto Glass as a limited liability company while still working for Safelite. Alarquan also allegedly registered the URL www.sl-autoglass.com while a Safelite employee.
According to its website, Safelife operates in Wisconsin and Chicago. Safelite alleges that Safelife used a similar name and similar branding to appeal to potential Safelite customers in that area.
by Abby Bowman, GlassBYTES**
Aon sues ZestyAI for patent infringement
[Ed. Note: As of now, the case Aon Re, Inc. v. Zesty.ai is ongoing. Aon's response to Zesty.ai's motion to dismiss is due by June 2, 2025, and Zesty.ai's reply is due by June 13, 2025, as reported by Coverager. The case centers on allegations of patent infringement involving four patents related to AI-powered property risk assessment.
Aon sues ZestyAI for patent infringement
Aon Re has filed a lawsuit against building analytics platform ZestyAI in the US District Court for the District of Delaware, alleging patent infringement. The complaint centers around Aon’s proprietary technology for assessing property risks using aerial imagery and machine learning.
Aon claims that ZestyAI, founded in 2017 and headquartered in California, has been unlawfully using its patented technology to enhance its own property risk assessment offerings. The four patents in question (Nos. 10,529,029; 10,650,285; 11,030,491; and 11,195,058) cover methods and systems for analyzing aerial imagery to determine property characteristics and conditions, such as roof quality and structural vulnerabilities.
Aon argues that ZestyAI’s products, including Z-Property and its associated risk analysis tools, directly infringe on these patents.
According to the complaint, Aon informed ZestyAI of the alleged infringement as early as April 2023, but discussions failed to yield a resolution. Aon now seeks monetary damages, a permanent injunction against further infringement, and an award for legal fees.
Telematics, Driving & Insurance
How Technology Is Being Used for Legal Cases After Auto Accidents - TFLcar
Today's tech-laden vehicles and accident reconstruction technology are better than ever at determining who's at fault.
In recent years, technology has transformed various sectors, and the legal field is no exception. After auto accidents, tools such as accident reconstruction software, drone imagery, and even artificial intelligence play crucial roles in evaluating cases. These technological advancements provide legal teams with precise data and visual evidence that can significantly influence the outcome of a case.
The use of mobile applications for gathering evidence at the scene of an accident has become increasingly common. These apps allow individuals to document details, capture photographs, and even record witness statements immediately, thereby creating a comprehensive case file. This immediate access to information helps attorneys build stronger cases and supports their arguments in court.
Moreover, technology facilitates better communication and collaboration among legal professionals, experts, and clients. Virtual consultations and the ability to share information securely online streamline the process, making it easier to navigate the complexities of legal proceedings after an auto accident.
The use of mobile applications for gathering evidence at the scene of an accident has become increasingly common. These apps allow individuals to document details, capture photographs, and even record witness statements immediately, thereby creating a comprehensive case file. This immediate access to information helps attorneys build stronger cases and supports their arguments in court.
Moreover, technology facilitates better communication and collaboration among legal professionals, experts, and clients. Virtual consultations and the ability to share information securely online streamline the process, making it easier to navigate the complexities of legal proceedings after an auto accident.
Climate/Resilience/Sustainability
2025 Hurricane Season Outlook: NOAA Predicts 60% Chance of Above-Normal Activity
New technology deployments and extended forecast capabilities aim to improve storm tracking as experts anticipate 3-5 major hurricanes during continued "high activity era."
NOAA forecasters predict a 60% chance of an above-normal 2025 Atlantic hurricane season, with up to 19 named storms and as many as five major hurricanes.
The 2025 Atlantic hurricane season, which runs from June 1 to Nov. 30, is expected to bring 13 to 19 named storms with winds of 39 mph or higher, according to the NOAA outlook. Of these, NOAA projects 6 to 10 will strengthen into hurricanes with winds of 74 mph or higher, including 3 to 5 major hurricanes reaching Category 3, 4, or 5 status with winds exceeding 111 mph. The agency reports a 70% confidence level in these predictions.
Multiple environmental factors are converging to create favorable conditions for hurricane development, according to NOAA. ENSO-neutral conditions (neither El Niño nor La Niña), warmer-than-average ocean temperatures, and forecasts for weak wind shear all contribute to the heightened risk. Additionally, increased activity from the West African Monsoon—a primary starting point for Atlantic hurricanes—could provide more tropical waves that seed powerful storms.
The Atlantic Basin continues to experience what meteorologists characterize as a “high activity era,” featuring elevated ocean heat content and reduced trade winds. This combination provides more energy to fuel storm development while allowing storms to form with less disruption from opposing winds.
“In my 30 years at the National Weather Service, we’ve never had more advanced models and warning systems in place to monitor the weather,” said NOAA’s National Weather Service Director Ken Graham. “This outlook is a call to action: be prepared. Take proactive steps now to make a plan and gather supplies to ensure you’re ready before a storm threatens.”
Forecast to fraud control – insurers put hail data to work
Live hail data sharpening forecasting, fraud detection and claims triage.
The insurance industry relies on data to assess and manage risk. Historical weather records, claims data and actuarial models have underpinned underwriting decisions and premium calculations for decades. But while this retrospective view has traditionally helped insurers understand long-term risk patterns, it's been less effective at supporting live operational decision-making during fast-moving weather events.
Among those events, hail poses a uniquely severe and underestimated threat. Despite the devastation caused by recent floods and cyclones, Australia's costliest natural disaster remains the Sydney hailstorm of 1999 – racking up more than $8.8 billion in damage (normalised to 2022 values). By comparison, Cyclone Tracy in 1974 accounted for $7.4 billion, and the 2022 floods totalled $6.4 billion.
They may be short in duration, but the concentrated impact of hailstorms – particularly on vehicles and rooftops – can lead to extensive and immediate damage.
Weatherwatch, driven by a long-standing commitment to understanding severe weather, developed HailTracker to better observe and analyse hail activity as it happens. Built by meteorologists and tailored to the needs of insurers, HailTracker is a multi-hazard monitoring and alert system that maps hailstorms in real-time, provides rapid alerting, and supports both pre- and post-event decision-making.
InsurTech/M&A/Finance💰/Collaboration
Salesforce to acquire Informatica in $8 billion deal
Salesforce is buying cloud data management firm Informatica to bolster the enterprise software giant's push into artificial intelligence.
KEY POINTS - Salesforce is acquiring cloud data management company Informatica in an $8 billion deal. - Salesforce is paying $25 per share for holders of Informatica’s Class A and Class B-1 common stock.
Salesforce said Tuesday that it’s buying cloud data management company Informatica in an $8 billion deal to bolster the software vendor’s push into artificial intelligence.
Shares of Salesforce closed more than 1% higher on Tuesday. Informatica stock rose 6%.
“Truly autonomous, trustworthy AI agents need the most comprehensive understanding of their data,” said Steve Fisher, Salesforce president and chief technology officer, in a release announcing the deal. “The combination of Informatica’s advanced catalog and metadata capabilities with our Agentforce platform delivers exactly this.”
Under the terms of the deal, holders of Informatica’s Class A and Class B-1 common stock will receive $25 in cash per share, according to the release.
Bloomberg reported Friday that the companies were in talks about a deal. The report sent shares of Informatica up more than 17%.
Phyn Acquired by Investment Group Led by Property Brothers' Jonathan Scott to Accelerate Growth in Smart Water Solutions
Phyn, the industry leader in intelligent water solutions, has been acquired by a powerhouse group of investors led by entrepreneur and television personality Jonathan Scott.
This strategic acquisition transitions Phyn from Belkin's ownership to a newly independent company backed by a high-profile group of investors with deep experience in technology, real estate and entertainment united in their vision to make Phyn's category-defining solutions a standard in every home and building.
The move marks a pivotal new chapter for Phyn, positioning the company for rapid expansion, heightened consumer awareness and deeper adoption across key market verticals including insurance, property management, building, utilities and home services
Slide Insurance Holdings Files for IPO - MarketWatch
Slide Insurance Holdings has filed for an initial public offering.
The specialty insurance holding company plans to list on the Nasdaq under the symbol "SLDE," according to a filing with the Securities and Exchange Commission on Friday.
The company did not disclose an expected price range or number of shares of its offering.
Slide is focused on underwriting single family and condominium policies in the property and casualty industry in Florida and South Carolina through its subsidiary, Slide Insurance Company. The company was founded in 2021.
Demand for coastal specialty insurance has increased in recent years as larger, national carriers have reduced their underwriting capacity in markets like Florida, the company said.
For the quarter-ended March 31, the company had net income of $93 million, up from $55 million in the prior year period.
Innovation
DIY Home Inspections Are Taking Over, Firms Say
The future of home inspections is here and it’s in the hands of…the homeowner, according to leaders of two firms that have developed DIY systems now being used by prospective insureds across the country for pre-policy property surveys.
“Do-it-yourself inspections are here!” said Craig Locante, head of survey business for EXL Survey and Business Control, who spoke at the Insurance Innovators USA conference in Nashville last week. “It’s not a matter of ‘if,’ but ‘How can I implement it?'”FULL ARTICLE
Recommended Events
2025 Global Insurance Forum | Oct. 26-27, 2025 | Rüschlikon, Switzerland |Presented by the IIS
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