Financial Results
Triple-I/Milliman: 2025 US P/C Insurance Outlook Shows Strength in Personal Auto, Ongoing Pressure in General Liability Lines
The U.S. property/casualty (P/C) insurance industry began 2025 with a mixed underwriting outlook, according to the latest report, Insurance Economics and Underwriting Projections: A Forward View, from the Insurance Information Institute (Triple-I) and Milliman, a collaborating partner. Personal auto insurance remains a bright spot, while general liability insurance continues to face ongoing profitability concerns.
Key Highlights by Segment:
Personal Auto The 2025 net combined ratio (NCR) for personal auto is forecast at 96.0, approximately 1 point higher than 2024 but on track to achieve continued profitability.
Homeowners The Los Angeles wildfires in January 2025 contributed significantly to industry losses. The Q1 2025 loss ratio was the worst first-quarter performance for homeowners in over 15 years and the worst of any quarter since Q2 2011.
General Liability The Q1 2025 general liability loss ratio was the second worst first quarter in 15+ years, less than a 1-point improvement from Q1 2024, and signifying continuing profitability concerns.
Industry Trends and Economic Influences
Premium Growth Outlook: The overall 2025 net written premium growth rate is forecast at 6.8%, down 2.0 points from 2024, and the lowest since 2020. Personal lines growth is expected to exceed commercial lines by 1.5 percentage points in 2025, although the gap is forecast to narrow by 2027.
Profitability Outlook: The industry-wide NCR forecast for 2025 is 99.3, up 2.7 points from 2024. Despite line-specific challenges, 2026 is expected to return to broader profitability.
News
Three Insurers Join Ward’s Annual Top 50 P/C Ranking for 2025: only one was named for 35 straight years—RLI Corp.
Property/casualty insurers have started to broadcast the fact that they have earned spots on Ward’s list of 50 top-performing insurance companies for 2025, but only one was named for 35 straight years—RLI Corp.
In addition, there were three newcomers to the elite list this year: Hanover Insurance Group, Norfolk & Dedham Group and Intact Insurance Group USA.
Ward, a unit of Aon, which provides benchmarking and best practices studies for the insurance industry, annually analyzes financial performance property/casualty and life insurers by looking a five-year average measures of growth and profit, compiling the top 50 carriers in each segment since 1991.
According to Ward, the Ward’s 50 P/C insurance companies for 2025 produced a 14.0 percent statutory return on average equity from 2020 to 2024, compared to 8.5 percent for the P/C industry overall.
In addition, the Top 50 had a five-year average combined ratio 6.0 points better than the industry average.
Sam’s Club Adds Pet Insurance & Pharmacy Perks for Members - PetHelpful
PetHelpful aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission
If you’re a Sam’s Club member and a proud pet parent, there’s a brand-new reason to celebrate. Whether you’re managing vet bills, refilling prescriptions, or just trying to keep your furry friend healthy, Sam’s Club is stepping in with a perk that could save you money and stress.
This new offering gives members exclusive access to two key pet services: affordable pet medications and discounted pet insurance. This is part of Sam’s Club’s ongoing mission to bundle more value into your membership, including families with four-legged members in the mix.
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Kentucky Insurers Must Use Kelley Blue Book or J.D. Power for Total Loss Valuations
[Ed. Note: Why, after all these years, do regulators endorse the use of outdated and unreliable guidebooks for total loss ACVs when virtually the entire auto insurance industry relies upon computerized, real time ACVs with supporting local data?]
The regulation clears up confusion created when J.D. Power bought NADA Guides, which were still referenced in Kentucky legislation.
Auto insurers in Kentucky now have clearer direction — and legal protection — when determining the value of totaled vehicles. As of July 1, the state’s Department of Insurance (DOI) has mandated the use of either Kelley Blue Book or the J.D. Power valuation guide when settling total-loss claims.
The emergency regulation follows the passage of Senate Bill 136, enacted earlier this year on an expedited basis. According to a DOI bulletin issued recently, these two pricing sources are now the only nationally accepted guides insurers are authorized to use in Kentucky.
Chris Nolan, executive director of the Insurance Institute of Kentucky, told Insurance Journal the rule addresses an oversight stemming from J.D. Power’s 2017 acquisition of the National Automobile Dealers Association (NADA) Guides. Kentucky statutes had continued to reference the NADA system, creating confusion in the industry when those guides ceased independent publication.
The situation was compounded when the state Department of Revenue, tasked in 2024 with naming updated valuation references, failed to act. That left insurers operating without formal guidelines or legal safeguards.
SB 136 resolved this by shifting authority to the DOI, which concluded that Kelley Blue Book and J.D. Power were the only guides meeting the statute’s “nationally accepted” criteria. A spot check comparing the two sources found minimal variation: a 2024 Toyota Prius trade-in value was $24,701 with Kelley and $24,550 via J.D. Power.
Still, questions remain. Some insurers use other tools, such as CCC Intelligent Solutions, which are not recognized under the new regulation and have been subject to controversy in previous valuation disputes. Nolan said additional rulemaking may be required to address these alternatives.
Commentary/Opinion
How Insurers Can Engage Gen Z | Insurance Thought Leadership
Traditional insurance research falls short, as Gen Z demands mobile-first, authentic engagement in the digital age.
In an industry built on long-term relationships and brand trust, insurers are facing a generational shift that's impossible to ignore. Gen Z is stepping into adulthood with a new set of expectations, behaviors, and decision-making patterns that many insurers simply aren't prepared for.
This is a digitally native generation that grew up on mobile-first experiences, real-time feedback, and hyper-personalized content. It's no wonder that more than half of this cohort feels anxious or overwhelmed at the thought of dealing with insurance. It seems well out of their wheelhouse.
That's a problem—but it's also an opportunity.
Breanne (Bre) Armstrong is a senior research director at Reach3 Insights.
Today
REPORT: State Farm to Raise Illinois Home Insurance Rates by Over 27%
Starting Aug. 15, State Farm will raise homeowners insurance rates in Illinois by 27.2%, impacting nearly 1.5 million policyholders.
The Chicago Tribune reports that new customers will see the hike beginning July 15.
The company cites rising catastrophic losses from extreme weather events such as the recent deadly flooding in Texas, continue to drive up insurance costs nationwide.
AI in Insurance
Top 10 insurance industry risk mitigation insights related to AI | Markel
As AI usage grows, the legal landscape has been playing catch up, leading to more lawsuits and pressure on lawmakers to provide clearer guidelines.
To address these challenges, the insurance industry should adopt proactive risk mitigation strategies to secure the responsible and ethical use of AI technologies. Here are the top 10 insurance industry risk mitigation strategies related to AI to keep in mind:
- Establish diversity in AI development teams: A diverse team can help identify and mitigate biases in AI systems, leading to more equitable outcomes. Biased algorithms can lead to unfair treatment of policyholders.
- Regularly audit AI systems: Continuous monitoring and evaluation of AI outputs can help detect and correct biases and inaccuracies. Insurance companies should regularly review claims processing algorithms to validate they are not unfairly denying claims or increasing premiums for certain groups.
- Maintain human oversight: Use AI as a tool to assist, not replace, human decision-making to prevent errors and biases. Human intervention is crucial to override AI decisions when necessary, affirming fair and accurate outcomes. For insurance companies, this involves having human adjusters review AI-generated decisions on claims and underwriting.
- Don’t substitute data for on-the-ground knowledge, specifically, leveraging relationships with your trading partners. Open communication between underwriters and brokers is key to keeping pulse on market shifts and how others are responding. In fact, the information received from trading partners is effectively the most updated data we could ask for. If we could capture it as quickly as our partners notice it, we would!
Telematics, Driving & Insurance
DIMO and Ownli Partner to Bring Data Ownership and Insurance Savings to Connected Drivers - Insurtech Israel News
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.”
Claims
CLARA Analytics Launches AI Tools to Improve Claims Oversight
CLARA Analytics (Sunnyvale, Calif.) has introduced two new artificial intelligence (AI) tools, Risk Notes and Claim Event Indicators, aimed at giving claims professionals real-time insights to improve the speed, accuracy, and efficiency of claims management.
CLARA says the new features, part of its CLARA Triage platform, are designed to help claims organizations move from traditional retrospective file reviews to proactive oversight by continuously monitoring every claim throughout its life cycle. The company reports that Risk Notes and Claim Event Indicators can identify deviations from best practices and flag potential missed opportunities earlier in the claims process.
“The insurance industry has relied on retrospective sample file reviews for far too long,” says Heather H. Wilson, CEO, CLARA Analytics. “We’re applying AI strategically to lead the industry forward. By taking a more proactive approach, powered by intelligence, every single claim can be handled more efficiently than ever before, with unparalleled accuracy and precision. This saves time, money and frustration.”
Risk Notes generate dynamic narrative summaries that explain claim complexity and update automatically when new information becomes available. CLARA says the tool synthesizes structured and unstructured data into clear, human-readable insights, helping adjusters understand what is happening in a claim, why it is happening, and what actions may be required. Risk Notes also provide reserve benchmarking informed by historical data to support decision-making.
Climate/Resilience/Sustainability
Kristi Noem Renews Call to Eliminate FEMA Even After Texas Flood
Homeland Security Secretary Kristi Noem reiterated her call to overhaul the Federal Emergency Management Agency, even as the organization helps in search and recovery efforts following the catastrophic flooding in Texas that’s left more than 100 people dead.
“This entire agency needs to be eliminated as it existed and remade into a responsive agency,” she said via video link at a meeting of the FEMA Review Council, held in New Orleans. *“Federal Emergency Management should be state and locally led, rather than how it has operated for decades.”
InsurTech/M&A/Finance💰/Collaboration
ServiceUp Raises $55M in Series B Funding for Vehicle Repair Management
Los Gatos, California-based ServiceUp has raised $55 million in Series B funding, bringing the company’s total funding to date to $70 million.
The round was led by PeakSpan Capital, with participation from existing investors Hearst Ventures, Trestle Partners, Capital Midwest Fund and Litquidity Ventures.
With this latest capital raise, ServiceUp plans to grow its team, enter new markets and accelerate development of Connect — a SaaS configuration to give fleets and insurers self-service control over repairs.
Founded in 2021, ServiceUp promotes its platform as delivering efficiency by eliminating manual follow-ups, providing transparency through live repair tracking providing oversight with a centralized dashboard.
Claims Journal
Allianz UK partners with Volkswagen Financial Services
Allianz UK has announced a new partnership with Volkswagen Financial Services UK to become its new car insurance provider.
The five-year partnership extends across Volkswagen Group’s passenger car brands in the UK – Volkswagen Passenger Cars, Škoda, Audi, SEAT and CUPRA.
In 2018, Volkswagen announced a partnership with Direct Line Group, which was recently acquired by Aviva.
Customers will be offered a range of benefits including:
- A two-tiered product: Two levels of cover will be offered – Essentials and Plus.
- Complimentary driveaway insurance: Complimentary five- day driveaway insurance available for eligible customers who purchase a new or used vehicle from any Volkswagen Passenger Cars, Škoda, Audi, SEAT or CUPRA retailer.
- Simple vehicle changes: No administration fees when making changes.
- User-friendly insurance portal: A dedicated portal providing customers with access to all necessary information regarding their coverage.
Liberate and Zywave Announce Voice AI Comparative Quoting Integration
Liberate, the leading conversational voice AI platform designed to transform the insurance industry, has announced a strategic partnership with Zywave to enable Voice AI comparative quoting. Zywave's TurboRater customers will soon be able to leverage Liberate best-in-class Voice AI to provide personal insurance quotes in all 50 states, 24/7, in English, Spanish and more than 100 other languages.
"Zywave is the largest enabler of digital quoting in the insurance industry, so this integration will accelerate and enhance the insurance quoting experience for countless insurers and their customers," says Amrish Singh, CEO and co-founder of Liberate. "We relentlessly strive to deliver insurance innovation, and the Zywave integration is yet another example of what's possible when forward-thinking companies come together."
"The integration of Zywave's TurboRater with Liberate's Voice AI will significantly boost efficiency and productivity for our customers. By automating the quoting process and providing 24/7 availability, in multiple languages, we are helping insurers save time and resources while delivering exceptional service," says Sherrie Clevenger, Vice President of Product Management at Zywave.