Goldman Sees Autonomous Vehicles Transforming Insurance World  June 11th 2025

Congress takes on rising home insurance costs with bold plan

A new bill introduced in the US House of Representatives seeks to bolster state insurance programs by directing the Treasury Department to guarantee obligations and provide reinsurance for eligible programs addressing natural disaster risks.

House Resolution 827, known as the Homeowners’ Defense Act, was introduced by Rep. Frederica Wilson (pictured), D-Fla., to address concerns over property insurance costs and market stability.

The legislation aims to support state efforts in managing risks from natural disasters, stabilize insurance markets, and promote mitigation initiatives, according to a statement from Wilson’s office.

House Resolution 827 – what does it do?

Under House Resolution 827, the Treasury Department would guarantee up to $3.5 billion in debts for state programs covering earthquake risks and up to $17 billion for programs addressing other perils.

Eligible programs must outline debt repayment plans without using federal funds, with terms including fees for coverage and a maximum duration of 30 years. The Treasury would also prohibit coverage for flood losses in properties required to have flood insurance, already covered by it, or located in special flood hazard areas.

Additionally, the legislation allows the Treasury to enter one-year reinsurance contracts with eligible state programs, covering 80% to 90% of insured losses. The Treasury secretary would set attachment points and pricing.

New studies point to increasing risk of loss from wind, rain during hurricanes

As hurricane season begins June 1, new studies point to an increasing risk of loss from severe wind and water damage common during these intense storms.

Published in the Society for Risk Analysis’ journal, a study by University of Illinois researcher and civil engineer Eun Jeong Cha predicts the risk of loss from hurricane-related winds could increase up to 76% as soon as 2060 for states in the Southeast, including Louisiana.

“These states experience the highest hurricane activity and associated wind-related losses in the U.S.,” Cha said in a news release. “They represent a critical region for understanding how climate change may alter hurricane risk.”

While much of the damage from storms is caused by water, over 40% of residential storm-related losses from hurricanes are attributed to heavy winds, costing the U.S. economy an expected $14 billion annually, according to a 2019 Congressional Budget Office report. 

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Mercury Insurance Builds Climate Science Team to Tackle the Impact of Extreme Weather Events

Mercury Insurance (NYSE: MCY), a leading provider of property and casualty insurance, has appointed Steve Bennett as its Senior Director of Climate and Catastrophe Science. In this new position, Bennett will build and lead a team dedicated to helping identify ways Mercury and its policyholders can work together to better prepare for — and be more resilient — in the face of increasingly severe climate-driven weather events.

This move is the latest in a series of investments by Mercury to better understand and counteract forces facing insurance providers in high-risk areas. Climate change, population growth and resulting urban expansion has placed the insurance industry at a crossroads, resulting in many insurers pulling back from areas prone to wildfires, hurricanes and other catastrophic climate events. Mercury has taken a different approach to this challenge over the past year, working with homeowners, municipalities and government to create more resistant and insurable risks. The result has led to Mercury writing more policies in areas where its competitors have cancelled or non-renewed coverage for tens of thousands of consumers.

"Mercury is constantly looking for ways to say 'yes' to consumers, and to do that we are taking a science-based approach to risk," says Bennett. "When customers do their part to harden their homes and communities from potential catastrophic events, we will do ours by extending affordable coverage options to those who may have difficulty securing policies. I'm proud to be part of a larger Mercury vision dedicated to ensuring that investments in mitigation and smarter rebuilding translate into a healthier and more efficient insurance marketplace for everyone."

From satellite to strategy: How ICAT is reinventing underwriting with AI and sensor tech

AI is innovating all arms of insurance – but perhaps none more than underwriting. According to data from Capgemini, 62% of executives believe AI is improving underwriting quality and reducing fraud – with 43% of underwriters adding that they trust and regularly accept automated recommendations from predictive analytics tools. However, the true magic manifests when firms start to combine AI with the power of data science.

Speaking to IB, Robert Klepper, chief underwriting officer at ICAT, explained that the strategic integration of innovative new tools is helping redefine how underwriters evaluate properties nowadays

“The currency that we use is really location-level attributes for property underwriting,” he said. “That goes across the range of residential into small commercial and then large commercial.”

But with access to more data than ever before, the challenge isn't scarcity — it's structure. As Klepper told IB, ironically one of the biggest issues underwriters face is dealing with too much data, especially if you're a desk underwriter.

“From there it becomes a question of how do you structure the data? How do you organize it in a way that can give you insights to make decisions?” added Klepper. Here, ICAT employs both passive and dynamic data sources. Dynamic sources include physical inspections and sensor data, while passive data often comes in the form of satellite or aerial imagery.