Today's Headline
Heat Dome To Bake The South And Midwest Ahead: Feels-Like Temps Up To 110 Degrees Are Possible
True to form for July, another round of searing heat and stifling humidity is on the way. Here's how hot it may get, who will sweat the most and how long it will last.
Another heat dome of high pressure will spread dangerous heat and humidity from the South into parts of the Midwest this week.
While the upper Midwest and Northeast will see a reprieve from summer's searing temperatures over the next few days, July's reputation for oppressive heat and muggy air will be on display as the week wears on. And that could have real staying power for some.
AI in Insurance
Why Insurance AI Projects Fail | Insurance Innovation Reporter
Four steps insurers can take to make their data AI-ready to ensure project success.
A frequent topic of conversation with life insurance and annuity leaders is their goals and concerns surrounding the AI landscape. They commonly talk about the vast opportunities that could exist for them at their company, but by far the most significant obstacle to achieving these opportunities is that their “data” is not ready for AI.
Gartner reports that 60 percent of AI projects that are not supported by AI-ready data will be abandoned by 2026. This should surprise nobody, as the hardest part of big digital transformation projects is getting the data out, in, and back again. In short, if you get the data right, there can be tremendous upside and the counter is true.
IDC’s recent study of successful AI initiatives found an average return of $3.70 for every dollar invested, with top performers achieving returns exceeding $10 per dollar invested. While these are cross-industry figures—and there are unique challenges faced by life and annuity carriers—the potential returns make a compelling case for action and unlocking the value others are achieving.
With the possibility of returns like these, there is no time like now to make your data AI-ready. However, carriers should proceed with caution, since not all approaches are effective. It’s tempting to start by patching existing solutions or replacing legacy systems, but a better place to start is to borrow from the playbooks of digital pioneers.
Dustin Yoder is the CEO and founder of Sureify. Since 2012, Sureify has been helping Life & Annuity carriers modernize insurance sales and policyholder interactions through digital solutions.
Commentary/Opinion
Why Insurtech Is Making Term Insurance More Affordable Than Ever
The insurance sector, which was seen as overly complex, is undergoing transformations. With the rise of Insurtech (insurance technology), buying an affordable term insurance policy has never been faster, easier, or more cost-effective. What was laboriously time-consuming and paper-based is now digitalised, transparent, and customer-centric.
Let's find out how Insurtech is revolutionising the term insurance segment and making life cover available at the convenience of individuals without the need for tedious paperwork or in-person meetings.
Understanding Insurtech in Simple Terms
Insurtech is the application of technology in the insurance industry to speed up processes, make them more efficient, and provide a better customer experience. Insurtech entails online platforms, artificial intelligence tools, automated underwriting, digital documentation, and data-driven pricing. The outcome is an accelerated system that is smarter and faster to manage.
1. Online-Only Models Cut the Costs
There were layers of middlemen, such as agents and broker, that added to the expense of the policy. Insurtech players have eliminated these additional costs through online models.
Naina Rajgopalan, Content Head, Finextra
Financial Results
Swiss Re projects 10% ROE for US P&C insurance in 2025 on investment gains
A new report from Swiss Re projects a favourable 2025 outlook, with the U.S. property & casualty industry expected to maintain a 10% ROE through 2026, as improved investment returns help offset weaker underwriting profitability despite historically strong, though slowing, underlying results.
According to Swiss Re’s new report, the US P&C industry recorded a 99% combined ratio in the first quarter of 2025, which they said was an impressive result given the California wildfires, while also signalling strong underlying profitability.
However, as per the report, rising capacity and competition will begin to erode underlying results, while elevated catastrophe activity has continued through the second quarter.
“Rate gains are easing across many commercial and personal lines where insurers assess pricing to be adequate and are targeting expanded market share in spite of elevated uncertainties. We see headwinds to premium growth building, which may be compounded if exposure growth slows,” Swiss Re said.
With this in mind, the reinsurer has forecast ROE at 10% this year and next, a slight decline from 11% in 2024 after elevated catastrophe activity in the first half of the year.
Marsh McLennan net income surges 7.6% to $1.2bn in Q2 2025
The insurer’s consolidated revenue for Q2 2025 amounted to $7bn, a 12% increase from Q1 2024.
Marsh McLennan has reported attributable net income of $1.21bn for the second quarter of 2025 (Q2 2025), a 7.6% increase from $1.12bn a year ago.
The company's diluted net income per share rose by 8% to $2.45, while operating income grew by 11.8% to $1.83bn.
The insurer’s consolidated revenue for the quarter stood at $6.97bn, a 12% increase from Q1 2024.
Legal System Abuse/Social Inflation
‘Excessive litigation’ in US driving up liability rates: Marsh McLennan CEO - Business Insurance
Excessive litigation in the U.S. is driving a surge in liability insurance rates, the top executive at Marsh & McLennan Cos. Inc. said Thursday as the brokerage reported higher revenue and profit in the second quarter despite economic headwinds.
Overall commercial insurance rates continued to soften in the quarter, driven by property, but U.S. excess casualty rates jumped 18%, according to Marsh LLC’s global rate index.
“Excessive litigation and the abuse of our legal system are effectively imposing a tax on our economy and causing a surge in U.S. liability insurance costs,” Marsh McLennan President and CEO John Doyle said during an earnings call with analysts Thursday morning.
“Escalating costs will only make it harder for companies to decide to invest and grow here, and for those that do, they will ultimately have to pass along these increased costs to consumers,” Mr. Doyle said.
Marsh McLennan reported $6.97 billion in revenue for the quarter, up 12% from the same period last year.
Cyber Risk
Cybersecurity Bosses Growing Increasingly Worried About AI Attacks and Misuse
Nearly a quarter of cybersecurity bosses said their companies have experienced an attack powered by artificial intelligence in the past year, according to a new survey in which AI risk emerged as the defining challenge.
The number of AI-enabled attacks is likely underestimated because they are often hard to differentiate from human-led efforts, according to a report from the Tel Aviv-based venture fund Team8, which focuses on cybersecurity, AI, data, fintech and digital health. For the survey, the firm queried about 110 chief information security officers, who expressed both fear of malicious uses of AI and hope that it could improve cyber defenses.
We’ve already seen the impact of AI-driven attacks — especially sophisticated phishing and deepfake campaigns that are incredibly convincing and hard to catch,” said Mandy Andress, the CISO at Elastic, an information technology and data analysis firm, in a statement provided with Team8’s survey. “It’s clear we’re in the early stages of an AI arms race, and right now, the attackers moved first and have the edge.”
InsurTech/M&A/Finance💰/Collaboration
Verisk Signs Definitive Agreement to Acquire SuranceBay to Expand its Life & Annuity Offerings
SuranceBay joins Verisk’s FAST platform to enhance efficiency between carriers and the distribution ecosystem
Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, has signed a definitive agreement to acquire SuranceBay, a leading provider of producer licensing, onboarding, appointment and compliance solutions for the life and annuity industry, for $162.5 million in cash. This acquisition underscores Verisk’s commitment to streamlining and automating the process of buying and selling insurance, and to supporting a robust life and annuity ecosystem with solutions that enhance workflows between carriers, general agencies, insurance agents and consumers.
With this acquisition, SuranceBay’s solutions, including its best-in-class agency management software, SureLC™, will become part of Verisk’s FAST, the leading life and annuity platform. Together, these capabilities will cover all aspects of the insurance life cycle, from the buying experience through claims and the critical relationship between carriers and the distribution market. The integration is designed to enhance efficiency, agility and scalability to reduce friction between carriers and distribution partners. We will provide more details around SuranceBay and its impact on Verisk’s consolidated financial results on our second quarter 2025 earnings conference call.
Data Privacy
General Motors sued by US state over scary privacy invasion - TheStreet
GM used emotional blackmail to get buyers to sign away their privacy rights, the lawsuit alleges.
As cars become more technologically advanced, the amount of data they collect about their drivers is becoming downright dystopian.
Unlike tech companies that harvest the data from your digital footprint, car companies are harvesting your physical data.
Mozilla Foundation's Privacy Not Included data privacy initiative calls modern cars a "privacy nightmare on wheels."
Innovation
Viewpoint: Captives, parametrics meet
Parametric insurance, once viewed primarily as a fast-track mechanism for payouts following hurricanes, has evolved and is playing a more significant role in the captive insurance sector, judging by conversations at recent risk conferences.
Figures vary, but globally, the parametric insurance market was valued at $16.2 billion in 2024 and is projected to reach $51.3 billion by 2034, according to a report issued by Research and Markets. The U.S. parametric insurance market was valued at $5.5 billion in 2024, according to the report. Technological advancements, shifting economic conditions and the increasing frequency of weather-related disasters are fueling the growth.
Brokers and specialty providers have long promoted parametric policies as complementary to traditional insurance programs. Unlike indemnity-based coverage, parametric insurance triggers a payout when specific, predefined parameters are reached, such as wind speed, earthquake magnitude, rainfall level, temperature, or economic metrics like declines in sales or decreases in foot traffic. Crucially, whether the trigger has been met is based on information from an independent third-party data provider, resulting in faster payouts, regardless of whether a business incurs a physical loss.
Awards
The Institutes RiskStream Collaborative’s RAPID X Handpicked for PropertyCasualty360’s 2025 Insurance Luminaries Recognition
Having first piloted in 2024, RAPID X is quickly gaining renown for enabling the seamless, secure transmission of loss incident data between carriers' claims systems.
RAPID X, The Institutes RiskStream Collaborative’s auto claims data exchange solution, has been named to PropertyCasualty360’s Insurance Luminaries Class of 2025 in the category of Claims Innovation. This annual recognition celebrates trailblazers who defy outdated stereotypes within the insurance sector and champion bold, innovative approaches to today’s most pressing challenges.
“RAPID X exemplifies the power of trusted claims data sharing and how new solutions like this can do so much to improve claims resolution for insurers and policyholders alike."
RAPID X leverages blockchain technology to streamline data sharing between insurance carriers in multiparty accidents. This solution facilitates secure, real-time data exchange, which significantly reduces inefficiencies, lowers operational costs, and enhances policyholder satisfaction through faster claims resolution. By transforming the way insurers exchange claims information, RAPID X is driving meaningful advancements in auto insurance claims processing and setting a new standard for collaboration and efficiency.
“It’s such an honor to have RAPID X named among the 2025 Insurance Luminaries,” said Patrick Schmid, President of The Institutes RiskStream Collaborative. “RAPID X exemplifies the power of trusted claims data sharing and how new solutions like this can do so much to improve claims resolution for insurers and policyholders alike. This recognition underscores the importance of collaboration and continuous innovation: both are key to making the insurance landscape stronger and more resilient.”
Webinars/Podcasts/Interviews
AM Best to Host Webinar on How Increasingly Risky Driving Behavior Is Impacting Auto Insurers
AM Best will host a complimentary webinar, titled, “How Increasingly Risky Driving Behavior Is Impacting Auto Insurers,” sponsored by Nationwide, on Tuesday, Aug. 5, 2025, at 2:00 p.m. (EDT). Register today
With poor driving behaviors and distractions like cell phone use continuing to rise, all drivers – whether behind the wheel of a personal vehicle or operating as part of a commercial fleet – are more at risk than ever before.
In this one-hour webinar, a panel of insurance experts will discuss how commitment to safety and taking meaningful steps to reduce dangerous behaviors can protect what matters most.
Panelists include:
- Casey Kempton, president, personal lines, Nationwide;
- Laramie Sandquist, senior associate vice president, agribusiness risk management, Nationwide; and
- Kristina Talkowski, senior vice president, middle market commercial lines, Nationwide. Playback will be available shortly afterward. Those unable to attend the live webinar can still register to receive the playback to view at their convenience.
Podcast Sponsor
Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts
The ‘Connected’ Podcast by Alan Demers and Stephen Applebaum, 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.
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