Commentary/Opinion
$1 trillion in private capital will help close coverage gaps – Aon CEO
Aon chief executive Greg Case (pictured) has called for $1 trillion in private capital to enter the insurance sector over the next decade to help address widening coverage gaps for natural disasters and cyber threats.
Speaking to the Financial Times, Case said the industry must expand its capital base to meet rising client demand amid growing volatility. “If we don’t bring in a trillion dollars in alternative capital in the next decade, we’ve failed,” he said.
Case’s comments come as the insurance sector continues to face significant pressure from escalating climate-related losses and a growing frequency of cyber incidents. Aon estimates that since 2000, insurance has covered less than one-third of global natural catastrophe costs. In 2024 alone, economic losses from natural disasters reached $223 million, with just $145 billion insured. Similarly, cyber risk coverage remains limited, with less than one-fifth of corporate information assets insured globally, according to Aon data.
Investors such as hedge funds, pension funds and sovereign wealth funds have already increased their exposure to insurance risks through catastrophe bonds and insurance-linked securities (ILS), which now account for more than $115 billion in capital. These structures offer attractive returns that are largely uncorrelated with broader financial markets but investors interest is heavily dependent on the ability to model and manage risk accurately.
The United States of Insurance in 2025
Upward premium pressure characterizes most of the U.S. property and casualty (P&C) insurance landscape in 2025.
Insurance professionals and customers must contend with an uptick in claims expenses, escalating property values, political and regulatory shifts, trade wars, inflation, litigious attitudes, well-organized attorneys, and the looming promise of ever-costlier natural disasters.
Hounds at the door
Natural disasters — including hurricanes, wildfires and severe storms — are causing significant losses. In 2023, the U.S. experienced more than 25 weather-related disasters costing more than $1 billion each. Higher costs, increased claim severity, and supply chain disruptions have driven up repairs and replacement expenses, especially for vehicle and property owners. In addition, reinsurers are raising rates, prompting primary insurers to pass that cost on to policyholders.
Some carriers in catastrophe-prone areas are exiting those markets or scaling back coverage, leaving expensive properties virtually uninsurable and forcing homeowners to pursue sometimes less-desirable forms of protection such as self-insurance.
State and federal regulators are closely monitoring industry practices, particularly in pricing and consumer protections. In some states, lawmakers are debating measures to stabilize homeowners’ insurance markets amid rising costs. It follows that the National Association of Insurance Commissioners (NAIC) is working on guidelines for emerging risks, including climate-related disclosures.
State Farm’s Next Move: A Comeback in the Making?
State Farm’s Next Move: A Comeback in the Making?
Progressive has done it. They’ve knocked State Farm off the top spot as the biggest U.S. auto insurer. But what’s next? State Farm isn’t taking this sitting down. With a market share of 16.2%—just a hair behind Progressive’s 16.4%—you can bet they’re plotting a comeback.
What’s State Farm’s Next Move?
State Farm isn’t exactly new to dominating the auto insurance scene. They’ve been the leader for decades. But losing the top spot stings.
How will they claw their way back? Experts say State Farm is likely doubling down on customer retention. Better discounts, improved claims service, and ramped-up advertising could be on the horizon. You’ve probably seen their “Like a good neighbor” ads before. But don’t be surprised if those campaigns go into overdrive.
There’s also the pricing game. Progressive surged ahead partly by getting aggressive with competitive rates. State Farm might follow suit. Price wars, anyone?
But there’s a challenge. Cutting rates too much could hurt profitability. Can State Farm strike the right balance? That’s the billion-dollar question.
News
Judge Denies LYNX’s Bid to Block State Farm-Safelite Switch - glassBYTEs.com
A United States District Court denied LYNX Services LLC’s request for a temporary restraining order (TRO) against State Farm Mutual Automobile Insurance Company, Safelite Group Inc. and Safelite Solutions LLC. If granted, the TRO would have halted State Farm’s transition from LYNX to Safelite Solutions as its glass claims administrator on July 1.
LYNX filed a motion requesting the court issue a TRO on June 27, citing alleged misappropriation of trade secrets. The U.S. District Court of Central Illinois, Peoria Division, held an emergency hearing on June 30 to address LYNX’s motion for a TRO.
According to the minutes of the hearing, Judge Jonathan Hawley denied the request and ordered both parties to submit redacted versions of the injunction documents filed under seal.
With the TRO denied, Safelite Solutions is free to provide third-party auto glass administration services for State Farm on July 1.
Today's Headline
Canada Day - July 1, 2025
[Ed. Note: We wish our friends and neighbors a Happy Canada Day and prosperity as an Independent nation and valued partner]
Canada's national holiday is celebrated on July 1.
Canadians across the country and around the world show their pride in their history, culture and achievements. It's been a day of celebration since 1868, where many festivities are held across the nation.
The Creation of Canada Day
July 1, 1867: The British North America Act (today known as the Constitution Act, 1867) created Canada.
June 20, 1868: Governor General Lord Monck signs a proclamation that requests all of Her Majesty Queen Victoria's subjects across Canada to celebrate July 1.
1879: A federal law makes July 1 a statutory holiday as the "anniversary of Confederation," which is later called *"Dominion Day."
October 27, 1982: July 1, "Dominion Day" officially becomes Canada Day.
Research
Corporate Carsharing Fleet Set to Nearly Double by 2029
The "Carsharing Telematics Market - 7th Edition" report has been added to ResearchAndMarkets.com's offering.
The public carsharing fleet to reach 755,000 vehicles worldwide in 2029 Carsharing is a decentralised car rental service focusing on short-term rentals that supplements other modes of transport including walking, cycling and public transport. Carsharing aims to provide an alternative to individual car ownership without restricting mobility by providing affordable car access.
Carsharing Organisations (CSOs) offer members access to a fleet of shared cars from unattended self-service locations. Today, most CSOs worldwide use stationbased networks with round-trip rental. This operational model requires members to return a vehicle to the same designated station from which it was accessed.
Many CSOs also offer oneway carsharing that enables users to return the car to any station operated by the CSO. Another model that is gaining in popularity is free-floating carsharing, which allows members to pick up and drop off cars anywhere within a designated area or zone. The ability to access available cars instantly without prior booking and no need to schedule a return time makes this type of service attractive for short trips. In some regions, more cars are now dedicated to free-floating carsharing than station-based carsharing.
Telematics systems and smartphones are key enablers of carsharing services. In-car hardware technologies for carsharing services comprise a telematics device and an RFID reader for capturing trip data, enabling fleet management and granting access to the car through an RFID smartcard or smartphone app. Additional hardware solutions such as damage sensors and smoke detectors can be installed to protect the vehicles, improve user behaviour and reduce accidents.
Financial Results
A look back at P&C in 2024 and its return to profitability
The US property and casualty insurance industry entered 2024 under continued financial pressure following two years of notable underwriting losses. Factors contributing to the negative results included elevated catastrophe losses, economic inflation affecting claims costs, and a reinsurance market that remained firm across multiple lines.
Among the most impacted were the personal lines segments – private passenger auto and homeowners insurance – which have been especially sensitive to recurring losses from secondary perils.
Unlike hurricanes, which generally affect coastal regions, secondary perils such as hail, wind, and wildfires occur across a broader range of geographies and continued to drive loss severity across homeowners policies.
That said, the year ultimately marked a shift in profitability for the industry. According to AM Best, the P&C sector recorded its first underwriting profit since 2020, with net underwriting gains reaching $22.9 billion. This was a notable reversal from the underwriting losses that had dominated the previous two years.
The industry also crossed a significant threshold by exceeding $1 trillion in direct premiums written (DPW) for the first time. The recovery was led by personal lines, particularly private passenger auto insurers, who posted a $14 billion underwriting profit after sustaining a $17 billion loss in 2023.
This $31 billion improvement helped push the entire P&C industry to an underwriting profit of over $21 billion in 2024, a $44 billion turnaround from the prior year. Homeowners and farmowners insurers also contributed, narrowing their underwriting loss to $2.1 billion from nearly $16 billion in 2023.
InsurTech/M&A/Finance💰/Collaboration
INSHUR Partners with Diesta to Automate Payment Operations and Support Global Growth | Insurtech Insights
The collaboration will see INSHUR adopt Diesta’s platform to automate reconciliation, streamline settlement processes, and enhance ledger reporting across multiple business lines and geographies.
The partnership represents a significant step forward in INSHUR’s efforts to scale efficiently while continuing to innovate in the fast-moving on-demand economy, where real-time service delivery and operational agility are critical.
“Partnering with Diesta supports our goal to deliver best-in-class operational infrastructure as we continue to transform insurance for the on-demand industry,” said Chris Gray, Chief Technology Officer at INSHUR. “The Diesta platform will enable greater automation, transparency, and efficiency for our teams and our partners.”
INSHUR’s decision to implement Diesta’s solution reflects both companies’ commitment to using modern technology to address long-standing pain points in insurance operations—particularly around payment workflows, which have traditionally been complex and time-consuming.
Julian Schoemig, CEO and co-founder of Diesta, welcomed the partnership: “We’re thrilled that INSHUR has chosen Diesta as their payment operations partner. Optimising the premium settlement process is our obsession, and we’re committed to delivering transformative solutions. We look forward to helping Chris and his team streamline operations, drive efficiency, and ultimately create a better experience for all participants across the value chain.”
Claims
Why Direct-Repair Partnerships Help Speed Up Claims and Cut Costs
Direct-repair partnerships have evolved in recent years; when done well, they create efficiencies that benefit insurers, policyholders, and restoration partners alike.
“Highly valuable direct-repair relationships really come down to trust and communication,” says Ken Davis, director of national accounts at the BELFOR Franchise Group’s Claims Partnership program. “Insurers need partners who are reliable, upfront about costs and estimates, and committed to high-quality work.”
Davis also explains that today’s environment adds both complexity and opportunity for direct-repair relationships. The best partnerships are those that embrace new technologies and tools, while also still prioritizing strong human connections.
Recommended For You
Digital tools have changed how insurers and repair partners collaborate, says Davis. “Now, they share data in real time. That speeds up approvals and estimates. The strongest partnerships use technology and innovation while still keeping that personal touch.”
He adds that upfront training and standardization go a long way in building stronger relationships. BELFOR Franchise Group’s Claims Partnership program includes 50,000 square feet of training facilities where adjusters get hands-on experience.
“We want to get our partners up to Ann Arbor and into our training facility. We want to shake your hand. We want to train,” says Davis. “So when you get an estimate from 1-800 WATER DAMAGE or Blue Kangaroo Packoutz, you’re not questioning it—everyone’s been trained to the same standard.”
This consistent training not only improves accuracy, but also helps reduce claim cycle times through calibration meetings, dedicated resources, and ongoing education.
Washington insurance commissioner considering update to claim, adjustment minimum standards | Repairer Driven News
[Editor’s note: This story has been updated to clarify the legislature’s actions on SB5331- Repairer Driven News]
Washington State Insurance Commissioner Patty Kuderer is considering a rulemaking that would clarify and update the minimum standards for first-party and third-party insurers to comply with during any claim investigation and adjustment.
“While the state’s total number of automobile and homeowners’ insurance claims has remained consistent over the past six years, the insurance commissioner has received an increase in consumer complaints and Insurance Fair Conduct Act notices, which indicate a consumer’s intent to sue their insurer,” states a post on the Office of the Insurance Commissioner (OIC)’s website. “The spike in consumer complaints and lawsuits against insurers indicates potential insurance code violations.
“In the midst of a changing technological and workforce environment, rulemaking may update and clarify requirements to maintain a fair claim environment for consumers that will provide transparency into the decisions that affect their financial recovery.”
According to the June 18 notice of rulemaking, a claims process public meeting held by OIC in 2023 included dozens of comments and hours of testimony from consumers who explained their difficulties with insurance claims.
In July 2023, the OIC’s Consumer Advocacy Program reported a historic volume of complaints since 2021, including 467 complaints in April of that year, up from the historic average of 287 per month — a 63% increase.
Based on a 2023 survey by the Washington Independent Collision Repair Association (WICRA), only 6.9% of nearly 1,100 photo-based claims were paid in full by insurers without supplements, and only 26 of them were accurate.
Webinars/Podcasts/Interviews
How Agentech’s Digital Coworkers Are Shaping Agentic AI: Robin Roberson on FNO: InsureTech
[Ed. Note: Highly Recommended]
Robin Roberson, President and Co-Founder of Agentech, joins FNO: InsureTech once again to reflect on a career of transformation and share how digital coworkers are shaping the future of claims.
When Robin Roberson first appeared on the FNO: InsureTech Podcast, the year was 2019. She had recently led WeGoLook through its journey from a startup to a major on-demand inspection platform, and she was already deeply engaged in reshaping how insurers gather and verify information. At the time, the idea of merging field services with scalable technology was forward-thinking. But few could have predicted just how dramatically the conversation around insurtech, automation, and artificial intelligence would evolve over the next several years.
Now in 2025, Roberson returns to the FNO stage as President and Co-Founder of Agentech. Her voice is one of both continuity and evolution. She brings the same pragmatic optimism that made her a trusted innovator in claims services, but now speaks with the urgency of someone helping to lead the next major leap in insurance operations—agentic AI.
The FNO podcast has grown immensely, too. Hosts Rob and Lee have built a platform that consistently surfaces key trends, questions, and provocations facing leaders across the insurance ecosystem. Their conversations have become essential listening for those on the front lines of underwriting, claims, customer experience, and innovation.
Recommended Events
ITC Vegas 2025 | October 14-16 | A Wonderland of Possibilities
Insurance innovation for our changing world
ITC Vegas (InsureTech Connect) uniquely combines unbeatable networking with what’s new and next, ensuring your time will be spent meeting more people, discovering new solutions, generating deal flow, and creating valuable partnerships. It’s a conference experience for the entire insurance ecosystem and unlike anything you’ve attended before! Join the transformative insurance event that doesn’t just bring the industry together – it moves the entire industry forward.
'Connected" Newsletter & Podcast and InsurTech Consulting are proud partners of ITC Vegas 2025 again this year
For more information, Visit Us Here
Podcast Sponsor
Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts
Co-curated by Alan Demers and Stephen Applebaum, The Connected Podcast is a condensed audio version of the day's ‘Connected' newsletter, a daily scan of all the happenings in the world of Insurance & InsurTech News.
Pulse Podcasts: Introduce a new way for your audience to hear your voice! We are a podcast creation service that helps businesses turn their written content, like blog posts and news articles, into beautiful podcasts. Our platform writes the script, records the voices, and mixes the audio to create engaging content for your audience. It's affordable and has super-fast turnaround!
LISTEN AND SUBSCRIBE BELOW