Financial Results
LOCKTON SURPASSES $4 BILLION IN FY2025 REVENUE, DRIVEN BY INDUSTRY-LEADING ORGANIC GROWTH AND RELENTLESS FOCUS ON CLIENTS
Lockton, Inc., the world's largest independent and privately held insurance brokerage, recorded global revenue of $4.0 billion for the fiscal year ending April 30, 2025—representing a five-year compound annual growth rate (CAGR) of more than 16%.
Key Fiscal Year 2025 Highlights
- Global revenue grew 13% to $4.0 billion, driven by nearly 100% organic growth—marking Lockton's fifth consecutive year of double-digit organic growth.
- International operations exceeded $1 billion, growing 15% in constant currency, marking a fourth consecutive year of double-digit growth.
- U.S. operations reached $2.7 billion, growing 11%, and continuing a seven-year streak of double-digit organic growth.
- Lockton Re grew 29% year-over-year, continuing its global expansion.
- Lockton's Transaction Liability practice cemented its industry-leading position, completing a record number of transactions and growing 59% year-over-year.
"Lockton is, first and foremost, a growth company, and consistent double-digit organic growth continues to set us apart from our competition," said Ron Lockton, Chairman and CEO. "As broker consolidation accelerates, Lockton's independence, performance, and consistent commitment to our clients and Associates continue to fuel growth and attract best-in-class talent."
Climate/Resilience/Sustainability
Property insurance costs, storm resilience are priorities - InsuranceNewsNet
Prior to the start of this legislative session, Florida lawmakers were widely expected to make progress toward improving resilience of properties, including increased funding for the My Safe Florida Home grant, while also letting the recent legal reforms credited with stabilizing the state's insurance market continue to work before making additional reforms.
However, what played out in session was shocking to say the least. While the Florida Legislature passed legislation that expanded the My Safe Florida Condominium Pilot Program to help condo owners harden their properties from storms, the Florida House also pursued a reversal of the aforementioned reforms. The House filed legislation to reverse the hard-fought legal reforms and return back to the status quo of a few years ago when Florida had some of the largest property insurance rate increases in the country.
This was the wrong call and many lawmakers and the governor balked at this attempt to go back on these reform efforts only a few years into them. Thankfully, the Florida Senate agreed that reversing reforms now would do nothing to improve insurance rates for policyholders and put a stop to the bill in its chamber to give more time to allow for the reforms to take hold. The bill ultimately was withdrawn from consideration.
However, this does not mean that all is perfect in Florida's property insurance market. Floridians still pay among the highest property insurance bills in the country and while the percentage rate of increases have gone down, people are still seeing increases in their bills each year.
Florida has long flirted with the seductive idea that we can legislate away the price of hurricane exposure by artificially lowering rates. From rate freezes to mandatory rollbacks, we've repeatedly treated high premiums as a political failure rather than a financial signal. But risk doesn't disappear because we vote it down. It simply moves underground, only to reemerge when disaster strikes.
Announcements
USAA to add 500 jobs with new Virginia facility
USAA has announced plans to add over 500 positions over the next two years with the addition of a new office facility in Chesapeake, Virginia. According to an announcement on LinkedIn, the new 200,000 square-foot office building will feature a state-of-the-art claims training center, on-site dining and fitness amenities and a modern, collaborative workspace.
USAA says this expansion is designed to support its increasing membership, which grew by more than 1 million members last year.
"We are thrilled to be expanding our presence in Chesapeake," Randy Termeer, president, USAA Property and Casualty Insurance Group, said in a release. “With the addition of 1 million new members last year, it is crucial that USAA has the space and facilities to ensure employees can continue to deliver the exceptional service members expect and deserve.”
The new office is located just a few minutes from USAA’s current Chesapeake facility. The carrier’s presence in the city is rooted in its proximity to 20 nearby military installations and service headquarters. This allows USAA to engage more effectively with the military community and attract talent from the 15,000 skilled military personnel who transition to civilian life each year.
“USAA is honored to be a part of Chesapeake's community and to serve the military families who call this region home,” Termeer continued in the announcement. “Our new facility will allow us to remain a top employer in the Hampton Roads region for dedicated teammates and to consistently deliver exceptional value to our members.”
Commentary/Opinion
How Insurers Can Win the War For Talent : Risk & Insurance
Insurance companies are gradually developing programs that could yet give them a leg up in the war for talent.
The talent pool that once fed big tech is drying up. A May 2025 study by SignalFire shows that the 15 largest U.S. technology companies have hired more than 50% fewer new graduates than in 2019.
This retreat may be structural: visionaries such as Anthropic’s CEO Dario Amodei now predict that half of junior white-collar jobs could be automated away within five years.
Insurance shares the same data-heavy, rules-based task mix, so these tremors are an early warning: the industry faces a simultaneous demand and supply shock for talent.
Demand Shock: When Humans Become the Risky Option
AI systems are already running entire insurance micro-workflows and are on course to scale across the value chain. In fact, according to McKinsey generative AI could automate up to 70% of business activities by 2030.
As soon as machines can process claims or underwrite simple risks faster, cheaper and with a tamper-proof audit trail, putting humans in entry-level roles may no longer prudent.
Brandon Nuttall is chief digital & AI officer at Xceedance
Bankrate article gives consumers clearer picture of how insurers are increasing short payments for collision repair | Repairer Driven News
[Ed. Note: Very comprehensive article. This long simmering issue is attracting greater attention and debate and should be resolved soon. The interested parties -- auto insurers, repairers and OEMs -- must come together to resolve it or law makers will do it for them. In the end, the definition of "safe and proper repair" needs to be determined by fully informed vehicle owner/policyholders.]
A recent Bankrate article written for consumers outlines how insurance companies are increasingly refusing OEM collision repairs.
“Imagine you get into a car accident: You dust yourself off, check the damage, maybe snap a picture or two. Then you call your insurance company,” the article says. “You start a claim; you take your car to the shop. Once your insurance adjuster and the body shop have taken care of everything, you’re only responsible for your deductible. You pay that fee, take the keys back from the body shop, and drive off in your car.”
It says that’s how insurance is supposed to work, but in recent years, more consumers are hearing that their insurance won’t cover everything they thought it did.
“The problem comes down to a disagreement between repair shops and insurance companies over what is — and what isn’t — necessary for auto repairs,” the article says. “One key point of contention is the safety inspections required by auto manufacturers in the post-collision repair process, which more and more insurers are refusing to cover.”
Research
More than a third of auto insurance policyholders say they’re unsatisfied with their companies | Repairer Driven News
J.D. Power’s 2025 U.S. Auto Insurance Study shows that 38% of policyholders aren’t satisfied with their insurance companies, making them “exceedingly less likely” to renew their policies and more likely to shop around for a better deal.
The U.S. Auto Insurance Study, now in its 26th year, measures customer satisfaction with auto insurers based on performance in seven core dimensions on a poor-to-perfect rating scale. In order of importance, individual dimensions measured are: level of trust, price for coverage, people, ease of doing business, product/coverage offerings, problem resolution, and digital channels.
Customers who have higher annual premiums, long tenure with their current insurer, and multiple policies with that insurer are least likely to renew with their existing insurer, with 51% saying they “definitely will” renew.
Good rates and low cost are the top reasons auto insurance customers cite for purchasing, but when it comes to renewing an existing policy, good service and positive claims experience are the top drivers of client retention.
Turbulence Ahead: Travel Anxiety Soars, Especially Among Younger Generations
As summer travel ramps up, new findings from Squaremouth, the nation's largest travel insurance comparison service, reveal that flight anxiety...As summer travel ramps up, new findings from Squaremouth, the nation's largest travel insurance comparison service, reveal that flight anxiety and concerns over airline disruptions are top of mind for U.S. travelers.
Squaremouth surveyed more than 2,600 customers to better understand traveler sentiment toward the aviation industry amid staffing shortages, air traffic issues, and recent airline incidents.
Half of Summer Travelers Brace For Flight Delays and Disruptions
Nearly half (47%) of travelers surveyed expect flight delays and disruptions to be worse this year than in years past, signaling growing concern ahead of the busy summer season. This concern comes at a time when more Americans are opting to stay closer to home and are taking shorter flights for their summer destinations.
Of travelers taking summer trips, 31% said they bought travel insurance specifically because they're concerned about flight disruptions or accidents, and 25% even said their travel plans were directly influenced by recent airline incidents and technical outages.
"Travelers are packing their patience this summer as they take to the skies. While they're still taking their vacations, they're doing so differently than in years past, as they opt for closer destinations and prioritize travel insurance to protect against potential issues like delays and cancellations," said Ned Tadic, Manager of Public Relations at Squaremouth.
Gen Z and Millennials Are More Anxious About Flying Than Older Generations
The data reveals a clear and surprising generational divide in traveler anxiety, with younger travelers expressing higher levels of concern than their older counterparts.
- 35% of travelers under 40 say their plans were directly influenced by recent aviation issues, compared to just 23% of those over 40
- 34% of travelers under 40 report feeling more anxious about flying this summer, compared to 30% of those over 40
- 37% of younger travelers purchased travel insurance because of flight disruption concerns, versus 30% of those over 40
Methodology: Squaremouth polled more than 2,600 customers to gauge their sentiment on the aviation industry. The survey was sent to all Squaremouth customers between 5/16/25 and 5/23/25.
Predict & Prevent
IBHS releases updated Wildfire Prepared Home Standard
As extreme wildfires become more frequent and intense, the *Insurance Institute for Business & Home Safety (IBHS) has released the first update to its Wildfire Prepared Home™ Technical Standard to help homeowners defend their properties.***
Updates are geared toward addressing common homeowner questions about mitigation requirements, including installing flame- and ember-resistant vents and ensuring a 0–5 Foot Noncombustible Zone, a critical element in effective wildfire mitigation. As seen in recent major wildfire conflagration events, this area – often referred to as Zone 0 – is key in stopping ignition from embers and flames near the home.
"This update to the standard reflects what we've learned through continued research and real-world application," said Steve Hawks, IBHS senior director for wildfire. "The Wildfire Prepared Home designation program puts science into the hands of homeowners who can take immediate, manageable steps to protect their homes from devastating wildfires."
Key updates to the standard include:
- Clearer definitions of designation levels, timelines and eligibility requirements.
- A new section to address preparedness during Red Flag Warnings and extended absences from the home.
- A revised How-To Prepare My Home Checklist to assist homeowners with how to complete the required mitigation steps to achieve a designation.
Autonomous Driving/Insurance
Why China’s Auto, Tech Giants Threaten Tesla’s Self-Driving Future
Chinese electric-vehicle makers led by BYD beat Tesla in the competition to produce affordable electric vehicles. Now, many of those same fierce competitors are pulling into the passing lane in the global race to produce self-driving cars.
BYD shook up China’s smart-EV industry earlier this year by offering its “God’s Eye” driver-assistance package for free, undercutting the technology Tesla sells for nearly $9,000 in China.
Claims
Genpact Launches Genpact RapidReplace with Amazon Business to Transform Personal Property Contents Claims
Genpact (NYSE: G), a global advanced technology services and solutions company, today announced the launch of Genpact RapidReplace to transform personal property contents claims processing. This generative AI-powered solution streamlines the fulfillment process to enable straight-through processing (STP) and rapid goods replacement through *Amazon Business for a better customer experience.***
"When individuals lose belongings to fires, floods, or theft, they expect immediate and accurate claims resolution," said Adil Ilyas, Global Business Leader for Insurance at Genpact. "Through our collaboration with Amazon Business, we're bringing a simple and convenient customer experience to claims management. Genpact RapidReplace combines gen AI, digital platforms, and process expertise to reduce manual tasks, improve cycle times, and deliver superior outcomes to customers in need. This is the new era of claims resolution: faster, smarter, and more efficient."
Traditional property contents fulfillment is often slowed down by manual reviews, increasing costs for insurers and leading to potential claims leakage and customer dissatisfaction. In fact, a recent Genpact study found that 48% of US adult respondents have struggled with insurance claims, including one in five reporting dissatisfaction with the length of time for claims processing.
Genpact RapidReplace helps improve this process, reducing fulfillment time from up to 12 days to three days or less. The solution leverages data extraction and generative AI to compile a list of damaged or lost items and match them with like-kind-and-quality (LKQ) replacements faster than ever. Genpact RapidReplace integration with Amazon Business further enhances efficiency by utilizing Amazon Business' powerful search tools to identify LKQ replacements and global logistics network to enable fast delivery to policyholders.
Data Privacy
Privacy4Cars Taps AI Method to Score Data Privacy in Vehicles - Telematics - Auto Rental News
Privacy4Cars, a technology company that develops tools to protect data privacy and secure vehicle data for automotive businesses, recently received a new federal patent for its system and method that rates vehicles on data privacy.
Awarded by the U.S. Patent Office, the patent marks the first AI method on record to score privacy in vehicles. It is the company’s 10th awarded patent so far.
The first-of-its-kind method will be featured in future expansions of Privacy4Cars' Vehicle Privacy Report tool. It will enhance disclosures to help vehicle occupants better understand the growing web of companies collecting, storing, using, making automated decisions, sharing, and/or selling data about them through their connected vehicles.
"We've leveraged emerging AI tools and technologies to create a new process that computes a dynamic privacy rating for vehicles based on public and proprietary datasets," said Andrea Amico, CEO and founder of Privacy4Cars, in a June 10 news release. "Consumers and regulators alike have voiced the need for a single, comprehensive privacy rating system that quickly rates and explains a vehicle's privacy score and its underlying drivers, similarly to how vehicle safety ratings are communicated.”
Amico added that the dynamic scoring system adjusts based on various factors, including changes in law and actions taken by consumers and/or companies.
Today
LexisNexis: Collision severity and frequency trending down, insurance market softening | Repairer Driven News
[Ed. Note: Excellent report in all respects. Kudos to the LNRS team ]
In 2024, collision severity declined by 2.5% year-over-year (YoY) while property damage severity increased by 2.5%, and bodily injury severity jumped 9.2%, according to LexisNexis Risk Solutions.
LexisNexis also predicts that initial indications are rate levels will return to more normal levels this year, according to the 2025 U.S Auto Insurance Trends Report. It shows aggregate 2024 market data on consumer driving patterns, auto insurance shopping trends, claim frequency and severity, and consumer responses to rate increases.
Collision frequency moved from 7.8% in the first three quarters of 2023 to 7.3% in the same period in 2024. Given that collision frequency remained at 8% or higher for much of 2022, this decline is now a trend, LexisNexis wrote.
Property damage frequency also declined, moving from 4.1% in the first three quarters of 2023 to 3.9% over the same period in 2024. This coverage has not seen a frequency below 4% since Q1 2021, according to the report.
Bodily injury frequency stayed the same, at 1%, where it has been for multiple consecutive quarters.