Today's Headline
US P/C insurers hit by $1.1bn underwriting loss in Q1'25 primarily due to LA wildfires: AM Best
According to credit rating agency AM Best, the US property and casualty (P/C) insurance industry recorded a $1.1 billion net underwriting loss in the first quarter of 2025—a significant decline from the $9.4 billion gain reported during the same period in 2024.
The drop was primarily driven by elevated losses from the January wildfires in California. These initial figures are presented in AM Best’s Special Report: “First Look: Three-Month 2025 US Property/Casualty Financial Results.”
The data reflects insurer filings received as of May 29, 2025, covering about 96% of total industry net premiums written.
Catastrophe-related losses had a major impact on profitability, adding an estimated 14.7 percentage points to the industry’s combined ratio—up from 5.4 points in the first quarter of the previous year. This contributed to a deterioration in the combined ratio, which rose to 99.4 from 94.4 year over year.
Claims
Cars Are Getting Smarter. Why It Matters for Claims Professionals
Cars of today are more than just forms of transportation; they are mobile data hubs. Not only is the modernization of cars making life easier for people driving to work, dropping the kids at school, or going on road trips, but it is also greatly benefiting claims professionals and claimants themselves when accidents or other incidents arise.
The world of automotive vehicle forensics is complex, nuanced and rapidly evolving. While cars vary in shape, style, and speed, an underlying common characteristic in today’s world is their plethora of data that can help us as claims professionals—by way of event data recorders (EDR), infotainment data and in-vehicle cameras.
News
Erie Insurance Continues to Grapple with System-Wide Network Out
The insurance giant has been investigating the network outage since Saturday. There is no word yet when the network may be restored. Customers are encouraged to call their agent or use an 800 number
Erie Insurance customers in 12 states and Washington, D.C. can call one of the company's 13,000 agents with questions or concerns.
They can also reach the company's First Notice of Loss team if a tree falls on their roof or if their car hits a deer. That number is 800-367-3743.
The ability to reach the company by phone represents an improvement since Erie Insurance announced over the weekend that it was dealing with a network computer outage that was affecting all systems.
Reserving trends in casualty insurance: Canary or herring? - WTW
For people in the industry who read insurance trade journals often, it’s hard to ignore news stories about casualty reserving trends. In fact, one could argue they are front-page news most days. However, the data and the narratives can leave the reader with some uncertainty around the message. Are the extremely conservative actions of certain carriers a canary in the coal mine for darker casualty days ahead? Or does the data, insurer results and years of underwriting discipline lead the reader to believe reserving actions are a herring attempting to create a misleading narrative?
Casualty, and more specifically the general, automobile and umbrella/excess liability lines are experiencing continued stress in the marketplace. As has been widely reported, social inflation, legal system abuse, and lawsuit funding are leading to big increases in severity across liability lines. The pace and frequency of large settlements and verdicts have given pause for many carriers as highlighted by recent reserve bolstering at the end of 2023.
This reserve bolstering continued more broadly throughout 2024, with the P&C industry increasing liability reserves to address higher than expected claim costs and loss trends. However, according to S&P Capital IQ the 2024 calendar year reserves improved $2.6 billion on positive development. While greater than the 2023 number of $1.5 billion, the 2024 profit on release of prior year reserves falls short of the $7.1 billion average over the previous five calendar year results preceding 2023. The period during and immediately after the COVID pandemic had a slowing impact on certain liability claims. But when looking at the calendar year periods 2014-19, the broader P&C industry averaged $8.2 billion of positive development in each calendar year.
According to the same research, when drilling down by certain lines of coverage, “other liability- occurrence” had $10.3 billion of net adverse development in calendar year 2024. It’s important to note this represented an acceleration from the net adverse development of $4.7 billion for “other liability – occurrence” business in calendar year 2023
Insurtech Slide targets over $2 billion valuation as insurers pile onto IPO markets
Insurance tech company Slide is aiming for a valuation of up to $2.12 billion in its U.S. initial public offering, joining a lineup of insurance companies that have made impressive stock market debuts in recent weeks.
The company's roadshow launch follows stellar listings in recent weeks from eToro and Circle , underscoring a revival of investor appetite for market debutants after months of dealmaking paralysis from U.S. policy turbulence.
Slide and some of its existing stakeholders are looking to raise up to $340 million by offering 20 million shares priced between $15 and $17 each, the company revealed in a filing on Monday.
Insurers are more immune to market downturns, analysts have said, with heightened uncertainty boosting demand for their risk-mitigation offerings.
"The ongoing hard market in property and casualty lines has also supported strong underwriting margins, making insurers attractive candidates," said Kat Liu, vice president at IPOX.
While, Apollo-backed Aspen Insurance and Florida-based American Integrity Insurance went public last month, specialty insurer Ategrity is poised to debut later this week.
Founded in 2021, Slide offers family and condominium insurance policies in Florida and South Carolina. The company's profit rose 69.1% to $92.5 million for the quarter ended March 31.
Filings show 99.5% of Slide's policies are concentrated in Florida, where the company is aiming to grow its footprint in a market from which some insurers are pulling back, due to its history of natural disasters, primarily hurricanes.
The company is led by Bruce Lucas, who previously founded and led Heritage Insurance. Lucas's total compensation for 2024 was nearly $21.2 million, notable even when compared to large national carriers.
Size of Florida’s Slide Insurance Exec Compensation Has Tongues Wagging
When Tampa-based Slide Insurance registered for an initial public stock offering last week, one page of the filing quickly had people talking in the Florida insurance industry.
On page 132 of the filing with the U.S. Securities and Exchange Commissionit shows that Slide founder and CEO Bruce Lucas in 2024 took home more than $21 million in salary, bonuses and stock awards – considerably more than CEOs at most other publicly traded, Florida-domiciled carriers. The package is not far behind the compensation levels for the heads of some of the largest insurance companies in the world, including Chubb, Allstate, AIG and Travelers. FULL ARTICLE
Announcements
Fortune 100 Inhouse Counsel Marilyn McClure-Demers Joins Steptoe & Johnson and Leads Columbus Office - Steptoe & Johnson PLLC
COLUMBUS – Steptoe & Johnson PLLC is pleased to announce the arrival of Marilyn McClure-Demers to its Columbus office.
McClure-Demers joins the firm as a Member of the Business Department and will take on the Office Managing Member role after a transition period, succeeding Kevin West who has served in that role for the past 12 years. Additionally, McClure-Demers will serve as Assistant General Counsel to the firm. As Office Managing Member, McClure-Demers will focus on the strategic growth of the Columbus office, growing the attorney ranks, and expanding the firm’s Ohio client base. She will also lead efforts to launch a national Outside General Counsel practice to provide strategic, trustworthy, and practical legal counsel to mid-sized businesses.
“We are very pleased that Marilyn is joining Steptoe & Johnson, and we are honored that she has chosen our firm for the next chapter of her career,” said CEO Christopher L. Slaughter. “She is a highly accomplished lawyer with an impressive record marked by leadership roles in private practice, at major corporations, and in the non-profit sector. Marilyn is well regarded in the Columbus and broader Ohio business and legal communities. Her roots run deep in West Virginia and in our firm. All that makes her uniquely suited to take on a leadership role at Steptoe & Johnson. Many of us, myself included, feel like she is family and is coming home.”
McClure-Demers most recently served as Vice President and Associate General Counsel at Nationwide Insurance, a Fortune 100 company, where she was responsible for the strategic legal leadership of employment, corporate, intellectual property, class action, financial services litigation, and the discovery management center of excellence. READ ON
Research
2025 U.S. Auto Insurance Study | J.D. Power
The nation’s auto insurers have returned to profitability for the first time in years and that has them shifting gears from a focus on raising rates and exiting unprofitable markets to shoring up relationships with their highest-value customers. According to the J.D. Power 2025 U.S. Auto Insurance Study,SM released today, insurers will have their work cut out for them as they confront a marketplace in which 38% of customers are currently not very satisfied.
“Now that insurers are shifting back into growth mode, they really need to focus on cultivating and keeping high-value customers,” said Stephen Crewdson, managing director of insurance business intelligence at J.D. Power. “But among many of those customers, overall satisfaction this year is not particularly high. To shift that perception after the past few years of significant rate increases, insurers need to focus on delivering a tailored, seamless customer experience across all channels.”
Following are some key findings of the 2025 study:
More than one-third of customers not very satisfied: While overall customer satisfaction with auto insurers declines just 2 points to 644 (on a 1,000-point scale) from a year ago, more than one-third (38%) of customers fall into the bottom segment of customer satisfaction scores, which makes them exceedingly less likely to renew their policies with their existing insurer and more likely to shop around for a better deal.
Highest lifetime value customers at risk: Customers with higher overall lifetime value profiles, who have higher annual premiums, long tenure with their current insurer and multiple policies with that insurer also have the lowest likelihood to renew with their existing insurer. Just 51% of high-value lifetime customers say they “definitely will” renew with their insurer, which is lower than the medium-value lifetime customer (53%) and low-value lifetime customer (54%) segments.
Price gets customers in the door, but good service keeps them: Good rates and low cost are the top reasons auto insurance customers cite for purchasing from an insurer, but when it comes to renewing an existing policy, good service and positive claims experience are the top drivers of client retention.MORE
Hidden Homeownership Costs Hit $21,000 A Year In 2025
Owning a home costs over $21,000 a year in hidden expenses, according to a new Bankrate study. Here’s a breakdown of homeownership expenses across the U.S.
Buying a home is the biggest single expense most people will ever undertake. But many new homeowners are surprised to find that, after they have the keys in hand, the costs just keep on coming – and they’re adding up to a considerable sum.
The average annual costs associated with owning and maintaining a typical single-family home in the U.S. amount to $21,400 in 2025, according to Bankrate’s new Hidden Costs of Homeownership Study. We call them “hidden” because they’re often overlooked or unforeseen by homeowners, especially when they’re budgeting to buy a place. But these ongoing expenses are a reminder that the true cost of homeownership goes well beyond the property’s purchase price and the scheduled mortgage payments.
To determine the average hidden homeownership costs across the U.S., both nationally and by state, Bankrate analyzed prices for property taxes, homeowners insurance, utilities, internet and cable bills. We also calculated a sum for maintenance and repairs, by taking 2 percent of each state’s median single-family home price, a standard measure set by Fannie Mae. All figures were adjusted for inflation using the Consumer Price Index. (Note: Our analysis covers 49 of the 50 states: New York was excluded due to data limitations.)
AI in Insurance
AI-Powered Personalization Revolutionizes Insurance RFP Process - Risk & Insurance : Risk & Insurance
Custom AI assistants deliver stronger broker relationships and continuous improvement through feedback loops, Capgemini found.
Insurance companies are leveraging custom generative AI assistants to create hyper-personalized RFP responses, replacing generic templates with tailored proposals that significantly improve win rates and broker engagement.
This shift represents a fundamental change in how insurers approach client acquisition, moving from one-size-fits-all responses to context-rich, intelligent automation powered by enterprise-grade AI platforms, according to a commentary by Pinaki Bhagat, AI & Generative AI Solution Leader, Financial Services, for Capgemini.
The insurance industry faces a stark reality: Generic proposals are no longer sufficient to win business.
“Insurance RFP responses are starting to feel like they’ve been photocopied over and over,” notes Bhagat. Brokers and clients now expect proposals that speak directly to their unique needs rather than templated responses that could apply to any organization.
This shift reflects a deeper understanding of relationship-building in insurance.
“In insurance, trust is built on understanding, and understanding is signaled through specificity,” Bhagat explains. The consequences of failing to adapt are significant – many proposals don’t survive the initial review because they lack relevance to the specific client’s situation, he says.
Nearly half of CEOs say employees are resistant or even hostile to AI | CIO Dive
AI adoption faces three barriers: organizational change management, a lack of employee trust and workforce skills gaps, a Kyndryl report shows.
Few companies have aligned their workforce strategies with their AI investments, leaving a major gap in preparedness and talent needs, according to a May 29 report from Kyndryl, an enterprise technology services firm.
About 7 in 10 leaders responding to a survey said their workforce isn’t ready to successfully leverage AI tools, and half said their organizations lack the skilled talent to manage AI.
“Only a small group of businesses have been able to harness AI successfully for business growth,” Michael Bradshaw, global practice leader for applications, data and AI at Kyndryl, said in a statement. “This report shows that while data architecture and technology infrastructure are key pieces of the puzzle, organizations that do not prioritize their workforces will miss out.”
In the survey of more than 1,000 senior business and technology executives, 95% said they’ve invested in AI, but only 14% have aligned their workforce, technology and growth goals. In addition, 45% of CEOs said most of their employees are resistant or even openly hostile to AI.
Autonomous Driving/Insurance
Goldman Sachs sees autonomous vehicles transforming insurance world
The rise of autonomous vehicles will force a reconfiguration of the $400 billion US auto-insurance industry, as accidents caused by human error decrease and costs are slashed, but questions about liability remain, according to Goldman Sachs.
“Autonomy has the potential to significantly reduce accident frequency longer-term and reshape the underlying claim cost distribution and legal liability for accidents,” Goldman Sachs analysts including Mark Delaney wrote in a June 9 note to clients.
The autonomous vehicle market is growing fast and projected to reach $7 billion in 2030, and the potential market for autonomous virtual drivers for Class 8 trucks in the US will be around $5 billion by the same year, the analysts wrote. Tesla Inc.’s long-awaited robotaxi service is set to launch this week in its hometown of Austin, Texas, which has become a focal point for the growing robotaxi industry, with companies such as Alphabet Inc.’s Waymo already operating there.
Texas has relatively relaxed rules around autonomous driving, which is regulated much like any other type of passenger vehicle operation. The driverless vehicles are required to have cameras and be able to follow traffic laws and have to have insurance.
Goldman analysts see insurance costs declining over 50% in the next 15 years, from about $0.50 in 2025, to around $0.23 per mile in 2040. Still, they see modest real growth in auto insurance premiums for at least the next 10 to 15 years.