Climate/Resilience/Sustainability
The Daunting Warning From the Texas Flood | Insurance Thought Leadership
The tragedy doesn't just underscore the effects of federal spending cuts and climate change; it also demonstrates a deeper problem with human behavior.
The flash flooding in Texas has, tragically, killed more than 100 people, and much-deserved finger pointing has begun about who all is to blame. As responsibility gets sorted out over the coming weeks and months, I think we need to recognize another aspect of the problem, one that goes well beyond local, state and federal authorities. We humans just don't think and behave right.
The flood happened in what's known as the most dangerous river valley in the U.S., but local and state officials have for years decided not to install early warning systems because they didn't think voters would approve of the spending. Lots of people discounted the forecasts of heavy rain that the National Weather Service issued in the days leading up to the floods.
If we can't even prepare for flooding in what's known as Flash Flood Alley, where can we get it right?
I'm really quite discouraged. I'm beginning to think human behavior may be intractable.
To be clear, I'm happy to point fingers at lots of people in authority. There was a massive failure to prepare here, as this story in the Washington Post describes.
Paul Carroll, editor-in-chief, Insurance Thought Leadership
Deadly Texas Flash Floods Cause $18-22 Billion in Damage, AccuWeather Says
The deadly flash floods in Texas that killed more than 100 people over the Fourth of July holiday weekend will cause an estimated $18 billion to $22 billion in total damage and economic loss, AccuWeather said.
The weather forecasting service said the preliminary estimate accounts for damage to homes, businesses, campgrounds, recreation facilities, as well as disruptions to commerce and supply chain logistics and financial losses from extended power outages and road closures. The estimate also accounts for major travel delays, tourism losses and damage to infrastructure, as well as long-term physical and mental health care costs for survivors and families who lost loved ones.
The preliminary estimate includes both insured and uninsured losses and is based on a variety of sources.
“The damage, impacts on future tourism, cost of search and recovery efforts, extensive cleanup that will be needed, as well as insurance claims after this catastrophic flash flood, will have long-lasting economic impacts in the Hill Country region of Texas,” said AccuWeather Chief Meteorologist Jonathan Porter.
Persistent, heavy rainfall inundated the Texas Hill Country with up to 12 inches in some areas, causing the level of the Guadalupe River to increase approximately 30 feet within an hour, AccuWeather said.
Deadly Floods Reinforce Texas’ Challenge as Crisis Epicenter
Before dawn Friday morning, city manager Dalton Rice went for a jog along the Guadalupe River in Kerrville, Texas. He finished his run around 4 a.m. as a light rain set in. An hour later, he began receiving emergency calls: The river had flooded out of control.
Torrential rains were dumping into the Guadalupe. In just 45 minutes, the river surged about 26 feet (8 meters), sending walls of water sweeping into camps and RV parks busy with Fourth of July holiday visitors.
2025 U.S. Wildfires Nearly Double Over Same Time Last Year
There are currently 111 wildfires blazing across the U.S., according to newly released data by the National Interagency Fire Center.
Of the active wildfires, 31 are currently under suppression efforts, and the rest are being managed “under strategies other than full suppression.”
Year-to-date, there have been 36,156 fires burning more than 2 million acres.
While the number of fires is nearly double that of last year’s total for the same period (17,362), the acreage affected this year is much less than the 2,817,728 acres of land impacted during the same period in 2024.
Alaska leads the nation, with 79 currently active wildfires, followed by California and Montana. Only two of the 79 fires in Alaska have been contained.
According to NOAA’s National Centers for Environmental Information’s disaster analysis, wildfires across the U.S. cost an estimated 3.3 billion dollars per year between 1980-2024.
InsurTech/M&A/Finance💰/Collaboration
US InsurTech deal activity dropped by 5% YoY in H1 2025 : FinTech Global
Key US InsurTech investment stats in H1 2025:
- US InsurTech deal activity dropped by 5% YoY in H1 2025
- Californian companies continued to dominate US InsurTech deal activity with a third of the deals from the region
- Ledgebrook, a US-based InsurTech firm focused on the excess and surplus (E&S) insurance market, secured one of the largest US InsurTech deals in the first half of the year with a $65m Series C funding round, bringing its total capital raised to over $110m
In H1 2025, the US InsurTech market showed modest signs of recovery after a challenging 2024.
A total of 69 funding rounds were recorded in the first half of the year, up 5% from the 66 deals completed in H2 2024 but still 3% lower than the 71 deals seen in H1 2024.
Funding volume reached $873m in H1 2025, a 61% decline from the $2.2bn raised in H2 2024 but a 66% increase from the $527m raised in H1 2024.
While investment levels remain well below previous highs, the sequential uptick in deal count and YoY increase in funding suggest a stabilizing investor outlook for the InsurTech sector in the US.
Californian companies continued to dominate US InsurTech deal activity with a third of the deals from the region
California retained its position as the most active InsurTech state in H1 2025, completing 22 deals (32% share), up from 20 deals (28% share) in H1 2024.
New York followed with 19 deals (28% share), a notable increase from 16 deals (23% share) in the same period last year.
Texas rounded out the top three with five deals (7% share), down from six deals (8% share) in H1 2024.
The growing share of activity in California and New York highlights their strengthening dominance in the US InsurTech landscape, as these states continue to attract a larger proportion of deal flow amidst an overall recovery in market conditions.
Ledgebrook, a US-based InsurTech firm focused on the excess and surplus (E&S) insurance market, secured one of the largest US InsurTech deals in the first half of the year with a $65m Series C funding round, bringing its total capital raised to over $110m
The round was led by The Stephens Group, with participation from Duquesne, Brand Foundry, Floating Point, Hummingbird Nomads, and American Family Ventures.
This latest capital injection will support the company’s rapid expansion, including talent acquisition, product diversification, and deeper collaboration with carrier partners through increased risk retention.
Ledgebrook aims to solidify its position as a premier E&S platform by enhancing its tech-driven infrastructure and strengthening relationships with wholesale brokers through consistent delivery and innovation.
The funding underscores strong investor confidence in Ledgebrook’s vision of blending underwriting expertise with modern technology to transform the traditionally complex E&S landscape.
FinTech Global
Wefox raises €151 million
German insurance startup Wefox has raised €151 million comprised of a €76 million capital raise primarily from existing investors and a €75 million credit facility from Searchlight Capital Partners’ credit fund.
The funding follows the successful completion of the group’s business restructuring program, which included the sale of wefox Insurance AG and the Italian entities Wefox MGA S.r.l. and Wefox Services Italy S.r.l.
The new funding, which puts Wefox “on a clear path to profitability” for full year 2025, will enable the company to build out “its strong market positions” in Austria, the Netherlands, and Switzerland, as well as develop its MGA businesses internationally.
“Changing customer needs, new regulatory requirements, and new technological capabilities are transforming the insurance value chain. Our strengths and our focus on MGA and smart distribution services make us an attractive partner for risk carriers and downstream brokers. We believe that our compelling offering and our smart, asset-light business model will create value for our customers, our business partners and our investors. I would like to express my gratitude to my team and all employees who have contributed to our successful transformation, as well as our investors for their continued trust and support. I would also like to thank the outgoing board members for their support and collaboration, and I look forward to working with Prateek on the board.” – Joachim Müller, CEO of wefox Holding AG.
DIMO and Ownli Partner to Bring Data Ownership and
[Ed. note: High premiums, record-level shopping rates and although on-line shopping is everywhere, consumers encounter differing coverage quotes and a process that extracts loads of personal data. Equally frustrating are the volumes of subsequent sales calls, emails and marketing that follows a simple price check - prompting for new and better ways to shop for insurance with less hassle, in our opinion.]
[I had a chance to speak with Elan Nyer, CEO of Ownli, who shared his excitement about the new partnership with DIMO. "We both believe individuals should own their data and be able to make it work for them," he said. "This is just the beginning. More companies are adopting this personalized insurance shopping approach for their customers, and we expect to see additional carriers and agency partners joining soon".]
DIMO, the leading connected vehicle platform, today announced a partnership with Ownli, the platform that helps people collect, certify, and earn from their vehicle and driving data. Together, DIMO and Ownli are revolutionizing the way drivers shop for insurance by transparently making their vehicle data and custom insurance profile work for them.
Under this unique partnership, DIMO users can create an Ownli Insurance Profile with their vehicle data. The profile functions like a digital passport for insurance shopping, eliminating the need for drivers to have to manually re-enter data multiple times or chase down obscure requests.
Today, insurers and agents rely heavily on middleman data providers to acquire new customers and source vehicle data without car owners ever having the opportunity to profit from their own data. For context, the insurance advertising market in 2025 is expected to reach $14.12 billion, fueled in large part by a need for insurers to bring in new customers primarily with the help of data providers and lead generators.
Ownli’s solution cuts out the middleman and enables individuals to create a verified insurance profile that works for them, allowing insurers and brokers to directly provide a quote or insurance policy registration based on the data provided. Better yet, drivers can decide whether or not to share that profile and can be rewarded directly for doing so. With explicit permission, DIMO users can share their insurance profile and Ownli will connect them with the best broker to deliver personalized quotes from top insurers including Progressive, Allstate, Liberty Mutual, and more.
“Our mission is to help people see their data for what it is: an asset that should be made to work for them,” said Elan Nyer, CEO at Ownli. “This partnership allows DIMO users to save time, save money, and get paid for the data they already own.”
AI in Insurance
'Not just a tool – a transformation': How AI is rewriting the insurance playbook
From the back offices of global reinsurers to the cloud-native platforms of startup underwriters, artificial intelligence is no longer knocking at the door of the insurance industry - it’s pulling up a chair, rewriting the rulebook, and asking uncomfortable questions.
A convergence of generative AI (GenAI), agentic systems, and cloud computing is reshaping everything from how insurers assess risk to how they recruit and train their people. And if industry leaders are right, it’s not just processes that are being retooled - it’s the very architecture of insurance itself.
Do you care about AI and Insurance? – come and hear from Google, HUB, Aon and others at the insurance industry’s biggest festival
“We’re not talking about replacing underwriters,” said Athula Alwis, CEO of AllDigital Specialty Insurance. “We’re talking about enhancing selection, scaling decision-making, and bringing speed to something that used to take days.”
Telematics, Driving & Insurance
USAA retires pay as you drive program
USAA appears to be retiring its pay-as-you-drive product, according to its website. While existing policies will remain active through their term, new policies are no longer being offered.
In their place, USAA is rolling out SafePilot Miles, a usage-based insurance program where monthly premiums vary based on miles driven—offering discounts for both low mileage and safe driving.
This shift aligns with earlier coverage from January 2025, when Noblr—acquired by USAA in 2021 for roughly $100 million—began winding down its standalone Pay as You Drive program. Noblr expanded from 8 to 15 states before USAA opted to consolidate all telematics-based offerings under its broader “Usage-Based Program.”
Research
MarketScout: Q2 Composite Personal Lines Rates Up 4.6%; Commercial Up 2.8%
According to the MarketScout Market Barometer, the composite rate for U.S. personal lines increased in the second quarter to 4.6%.
U.S. personal lines rose an average 4.9% during the firth quarter.
Dallas-based MarketScout, a division of Novatae Risk Group, said high net worth homes valued over $1 million saw the largest hikes of 6.7% during the second quarter.
“We have just now entered hurricane season, so for those owning homes in coastal areas, expect homeowners’ rates to go up, not down,” said Richard Kerr, CEO of Novatae Risk Group, in a statement. “Agents should advise their clients in coastal areas to renew their insurance between January and March, as rates are often much more favorable during those months.”
Personal auto insurance rates increased 5.7% on average in Q2, added MarketScout
Commentary/Opinion
The Evolution of OEM Certification Programs and What It Means for Repairers - Autobody News
[Ed. Note: Highly recommended, especially for those of us who work with, depend upon and need to understand the future direction of the auto claims and repair process].
Once limited to premium brands only, OEM certification programs have been established by nearly every automaker, helping shops better serve consumers and their own teams
OEM certification programs have come a long way in the last two decades as vehicles and the tools, equipment, procedures and training needed to properly repair them have evolved.
Leanne Jefferies, vice president of strategic accounts and customer support at OEC, has been on the front lines of OEM certifications for years, and brings a unique perspective on how exactly shops can not only achieve certification, but leverage it as a strategic business advantage.
She appeared on a recent episode of The Collision Vision podcast, driven by Autobody News and hosted by Cole Strandberg, to talk about how certifications have expanded from luxury-only to mainstream, investment and ROI, and how certified shops can better serve consumers and their own teams.
Embedded Insurance
Wrisk Lands £12m Series B for Automotive Insurance Expansion | InsurTech Digital
Wrisk has closed a £12m (US$16.3m) Series B funding round to accelerate its expansion across European markets and enhance its embedded insurance platform for automotive manufacturers.
The round was co-led by Mundi Ventures and Opera Tech Ventures, the venture capital arm of BNP Paribas. Both firms will join Wrisk's board of directors. Existing investors QBN and Volution participated in the round.
The London-based company provides embedded insurance solutions to automotive brands including BMW, MINI, Volvo, Mercedes-Benz, Jaguar Land Rover and Stellantis.
Wrisk recorded triple-digit revenue growth in 2024 and wrote more than 100,000 policies during the year.
[MORE[(https://insurtechdigital.com/news/wrisk-lands-12m-series-b-for-automotive-insurance-expansion)