News
Francisco Partners to Acquire Majority Stake in OEConnection - CollisionWeek
Francisco Partners has agreed to acquire a majority stake in OEConnection LLC from Genstar Capital, the companies announced today. Financial terms were not disclosed.
OEConnection serves 45 vehicle manufacturers, 30,000 auto dealers and 135,000 wholesale customers across six countries.
Genstar Capital, Ford Motor Co. and General Motors will remain minority investors in the transaction.
Genstar acquired its majority stake in OEConnection in 2019 from Providence Equity Partners.
OEC was founded in 2000 as a joint venture between Ford, GM and other automakers to facilitate parts ordering between manufacturers and their franchised dealers. The company has since expanded into collision repair
Illinois insurance premium regulation proposal dies in House
Opponents to the bill argued that these provisions would radically change Illinois’ insurance regulatory environment, which could ultimately leave insureds with even higher premiums.
Legislation that would give the Illinois Department of Insurance the authority to regulate homeowners insurance rates in the state failed on the final day of the state’s veto session.
In July, Illinois Governor J.B. Pritzker called for legislation to give the state more control over homeowners insurance rates after State Farm announced it would raise premiums for Illinois homeowners by an average of 27.2%. The insurer attributed this rate hike to the risk of losses from severe weather events, but Pritzker and other state lawmakers argued that this action laid the cost of disasters in other states onto Illinois insureds.
In a July op-ed for the Chicago Tribune, Pritzker said, “As states across the country face even more extreme weather than we do, we need to make sure Illinois homeowners are not paying for losses that companies experience in other states.”
In response to this criticism of rate hikes in the state, State Farm reportedly said the increases were the direct result of losses the insurer incurred in Illinois, though it has been accused of failing to provide proof of that claim.
The bill that was rejected in the most recent session of the Illinois House would have required insurance companies to give customers 60 days notice prior to a premium increase greater than 10%. It would have also required insurers to use Illinois-specific loss data to justify rate increases for customers in the state.
Climate/Resilience/Sustainability
KCC Estimates Privately Insured Losses From Hurricane Melissa Will Hit $2.4 Billion
Listen to this article 5 min Catastrophe modeling company KCC estimates that privately insured losses from Hurricane Melissa will hit $2.4 billion.
This estimate includes insured damages to residential, commercial, and industrial properties in Jamaica and Cuba, according to Boston-based Karen Clark & Co. in its “Flash Estimate – Hurricane Melissa,” issued on November 6.
KCC’s figure for insured damages is at the top end of another estimate – between $2.2 billion and $4.2 billion – provided earlier this week by data analytics firm Verisk. ARTICLE
Extreme weather brings FAIR Plans to breaking point
In recent years, hundreds of thousands of Californians have purchased home insurance from a state-managed "last resort" insurance pool that has grown rapidly as private insurance companies have fled the market.
Now, in the wake of the devastating Los Angeles wildfires earlier this year, the Fair Access to Insurance Requirements (FAIR) Plan is seeking approval from the state for an average 36% rate hike, which would further squeeze homeowners who have no other options for coverage.
Insurance experts say it's a national warning sign, as the effects of climate change cause private insurance companies to pull back on coverage in disaster-prone areas, leaving states and their residents to assume more of the risk. Fewer homeowners will be able to purchase private insurance in the future, and even those who do may face higher premiums as companies charge more to pay for the FAIR Plan losses.
In some states, these state-managed insurance plans have grown from a handful of policies, as originally intended, to hundreds of thousands of homeowners. The plans charge high premiums and provide limited coverage.
"It was supposed to be a stopgap measure. People are supposed to be on a FAIR Plan policy for a short amount of time, but with climate change and these extreme weather events, that's not going to happen," said Alfonso Pating, global financial regulation analyst with the Natural Resources Defense Council, an environmental nonprofit.
At present, 35 states and the District of Columbia offer FAIR Plans or Citizens Plans to homeowners who can't find coverage on the private market. The plans are managed by state governments, with the financial backing of the private insurers doing business in that state.
Financial Results
TD: P&C earnings mixed in Q3
The property and casualty insurance sector delivered a mixed earnings season in the third quarter of 2025, with strong profit beats tempered by concerns over softening prices and slowing growth, according to a sector analysis released Sunday by TD Cowen.
Across the sector, the median earnings per share beat versus consensus expectations reached 15%, yet stock prices remained flat on earnings announcements and declined 5% over the quarter, analysts led by Andrew Kligerman reported.
Commercial lines insurers posted strong underwriting results, though investor reactions were muted amid worries that performance may have peaked. Chubb and The Hartford showed year-over-year improvement in underlying combined ratios, suggesting near-term sustained performance, analysts said.
The market globally is “in transition,” according to Chubb CEO Evan Greenberg, noting increased competition in large account business, while middle-market and small commercial property remained “more disciplined and orderly.”
Property pricing pressure intensified during the quarter, with US rates declining 9%, according to Marsh McLennan data. Large accounts experienced more pronounced declines, while small accounts continued seeing modest but slowing rate increases. Property-catastrophe reinsurance pricing fell roughly 10%.
US casualty pricing rose 8%, down from 9% in the second quarter, as social inflation and reserve risk continued to worry investors. Everest Group reported a substantial 12.4 percentage point reserve charge on US casualty business.
What Progressive and GEICO Q3 Results Reveal About Auto Insurance Profit, Growth
Analysts’ projections of slower growth and smaller underwriting margins ahead for personal auto insurers started to play out ever so slightly in third-quarter results of two giant auto insurers this week.*
Both Progressive and GEICO reported higher personal auto combined ratios in the third quarter and first nine months of 2025, when compared to the same periods in 2024, primarily driven by higher expenses rather than losses.
Still, the combined ratios were well below breakeven, with only Progressive’s third-quarter personal auto loss ratio coming in above 90—at 90.7.
Commentary/Opinion
Building Innovation From Within at Cincinnati Insurance
Director of Strategic Innovation Wendi Bukowitz discusses why upskilling internal associates is the most direct path to lasting transformation for companies
Most insurance carriers facing digital transformation challenges turn to outside consultants. It’s a natural impulse for companies across most industries striving to do more than keep pace with the breakneck speed of technological change, particularly when it comes to figuring out how to practically incorporate these changes into their operations.
Over the past year, The Cincinnati Insurance Companies has taken a decidedly different path. They’ve decided to build innovation capabilities from the ground up using their own people.
It’s a unique bet. Associates who’ve never used human-centered design or lean startup methodologies take longer to solve problems than seasoned experts. Solutions that might take consultants weeks can stretch into months when you’re teaching people on the job.
But Wendi Bukowitz, director of Strategic Innovation at Cincinnati Insurance, is playing a longer game.
The tech-focused insurance industry veteran’s Strategic Innovation Group is charged with moving ahead in giant leaps through innovation. But Bukowitz has devised a program that eschews importing outside expertise.
Instead, the associates cycling through her innovation programs — offline two days a week for five months at a time — aren’t just solving today’s business challenges, but tomorrow’s as well. The future-focused plan is to build tomorrow’s insurance leaders by equipping them with a mindset and toolkit that will help to improve how the carrier operates.
Bukowitz brings a seasoned perspective to this challenge. Before joining Cincinnati in 2019, she led the Innovation Lab at Munich Re’s US P&C Operations. The role sharpened her views into how reinsurers and primary carriers approach innovation differently.
At Cincinnati, she’s since crafted a dual approach: “Everyday Innovation” for problems that are new to the company but not the insurance industry; and “Breakthrough Innovation” for challenges no one has fully solved yet.
What makes Cincinnati’s “innovation work” particularly notable is what Bukowitz says is an unwavering commitment to the independent agent channel. Not just as a distribution strategy, but also as the foundation for every solution the company designs.
With nearly $10 billion in premium flowing through just 2,500 to 3,000 agent relationships (compared to competitors with 10,000 to 15,000, she notes), Cincinnati has made a definite choice to be a critical business partner rather than just another market option.
Telematics, Driving & Insurance
Study finds parents favor AI tech to keep teen drivers safe - Talker Research
Parents fight with their kids more about driving than dating, and they’re paying over $6,000 a year for it, on average, according to a recent survey.
The survey of 2,000 American parents with a teen driver found that parents disagree more with their teens about driving (51%) than about their screen time (48%), grades (39%), life plan (35%) or even their dating lives (32%).
According to results, they’ll have an average of four disagreements per month with their teens about it, with the most common points of contention being how fast they drive (60%), how late they stay out at night (52%) and how much gas they use (50%).
And along with driving disagreements taking an emotional toll on parents, the finances stack up as well. Looking at the cost breakdown, 81% of parents surveyed pay for all or some of their teenager’s gas, contributing $176 on average per month.
Ninety-one percent cover all or some of their teens’ insurance, totaling to an average of $206 per month, and 92% pay for all or some of their teenagers’ car maintenance, costing them $158 per month on average.
Faced with rising costs and safety concerns, many parents are trading some teen independence for greater oversight, from telematics to stricter house rules.
The cost of safety on the road is worth it The study was commissioned by Lemonade (http://lemonade.com) car insurance and conducted by Talker Research to uncover how much parents pay to fully equip their teens for the road, as well as the measures and tools they use to set their teens up for safety and success as drivers.
AI in Insurance
More than 1 in 3 companies plan to replace entry-level roles with AI | CIO Dive
Cutting junior hires may increase savings in the short run, but drying up the pipeline to future leaders could create a long-term crisis, a Korn Ferry report warned.
- More than 4 in 10 companies plan to replace roles with AI, particularly in operations and the back office (58%) and at the entry level (37%), according to an Oct. 28 report from global consulting firm Korn Ferry.
- However, a firm survey of more than 1,670 external global talent leaders, as well as 230 of Korn Ferry’s experts, indicated that while cutting entry-level hires may increase savings for 2026 and 2027, drying up this pipeline to future leaders could open the door to a long-term leadership crisis, the report warned.
- > “As AI expands in the workforce — becoming a colleague, not just a tool — leaders should carefully weigh the balance between innovation and developing the next generation of leaders,” Jeanne MacDonald, Korn Ferry CEO of recruitment process outsourcing, stated in a press release. Dive Insight:
The race to automate is creating a leadership challenge for talent acquisition professionals, the Korn Ferry report emphasized. While CEOs increasingly rely on recruiters to close the skills gap and build a workforce for the future, according to a recent LinkedIn report, AI is squeezing out entry-level roles and closing off a key pathway to hiring and developing leaders, the firm explained.
Only 11% of TA leaders said their executives are well-prepared to lead through the AI transition. To meet the challenge and ensure AI implementation is more closely aligned with C-suite ambitions, one priority for TA pros may be helping the C-suite communicate its vision across the workforce, Korn Ferry indicated.
Data Center Building Boom Creates Insurance and Risk Management Complexities
The global data center industry is experiencing unprecedented growth driven by artificial intelligence and cloud computing demands, with close to $7 trillion projected to be spent on construction data centers by 2030, according to Allianz Commercial research.
“Data centers are particularly hot and rapidly growing,” said Darren Tasker, head of Construction, Americas, at Allianz Commercial. “We’re seeing significant-sized projects, from a billion dollars to those in the realms of $20 billion. This breakneck buildout is fueling a rise in related infrastructure projects, particularly power plants, needed to fuel them.”
Nearly $3 trillion will be spent globally on data centers by 2029, according to Morgan Stanley, with McKinsey estimating capital outlays of close to $7 trillion by 2030, the report said.
The Accelerating Infrastructure Expansion
Technology giants are leading this construction surge. Amazon Web Services, Microsoft, and Google Cloud accounted for 63% of global cloud services revenue in the second quarter of 2025, and these major providers—alongside China’s hyperscalers, or large cloud providers—invested approximately $210 billion in AI-related data center capital expenditures during 2024, the report said. Looking ahead, the investment momentum continues with Amazon planning around $100 billion for 2025, Alphabet approximately $75 billion, and Meta around $65 billion, with most funding directed toward AI infrastructure development.
People
Sedgwick names Paul White as CEO, International
Sedgwick, the world's leading risk and claims administration partner has announced that Paul White, currently Regional CEO of International, will assume the role of CEO, International, effective January 1, 2026. His promotion reflects Sedgwick's commitment to global growth and operational excellence.
White will continue to lead strategic efforts across international markets, working closely with regional CEOs and operational teams to deliver innovative solutions and exceptional service to clients worldwide.
White has served as Regional CEO, International, for the past six years, overseeing operations in the UK, Australia, Asia, the Middle East, New Zealand, and South Africa. Prior to that, he held leadership roles as Sedgwick's UK CEO and COO. His extensive experience in insurance and risk management, has been instrumental in driving Sedgwick's success and strengthening its global operations.
White will transition into the new role with the retirement of Tom Simoncic, President of Global Property and International. Simoncic has provided 18 years of dedicated service to Sedgwick. His deep expertise in the property business and his thoughtful, people-first leadership have left an enduring mark on the organization. Under his guidance, Sedgwick's international business achieved consistent growth and outstanding results, always with a focus on colleagues and clients.
Recommended Events
Register: Risky Future AI Tools for MGAs ‘Demo Day’ on Nov. 12
Insurance Journal’s Risky Future series is hosting the “AI Tools for MGAs” Demo Day, a series of free AI tool demonstrations designed exclusively for managing general agencies.
The latest online event offers MGAs an opportunity to evaluate innovative and practical AI-powered products that promise to drive efficiency and modernization in the wholesale, program manager, and the delegated underwriter authority space.
In partnership with Insurance Journal, Risky Future’s AI Tools for MGAs Demo Day will be held on Wednesday, Nov. 12.
Beginning at 1pm ET, AI technology experts will present and demo their products to attendees. Information shared during the event will include technology product demonstrations of tools to help workflow automation, policy administration, billing, claims and more.
Visit the event’s website to register for this free event
Veterans Day
Veterans Day 2025: Founding, Fact & Meaning | HISTORY
[Ed. note: It is with tremendous gratitude that we honor, appreciate thank our U.S. veterans and all those who currently serve]
Veterans Day is a U.S. legal holiday dedicated to American veterans of all wars, and Veterans Day 2025 will occur on Tuesday, November 11. In 1918, on the 11th hour of the 11th day of the 11th month, an armistice, or temporary cessation of hostilities, was declared between the Allied nations and Germany in World War I, then known as “the Great War.”
Commemorated in many countries as Armistice Day the following year, November 11th became a federal holiday in the United States in 1938. In the aftermath of World War II and the Korean War, Armistice Day became known as Veterans Day.
Armistice Day The Treaty of Versailles was signed on June 28, 1919, marking the official end of World War I. Nonetheless, the armistice date of November 11, 1918, remained in the public imagination as the date that marked the end of the conflict.
One year later, in November 1919, U.S. President Woodrow Wilson proclaimed November 11 as the first commemoration of Armistice Day. The day’s observation included parades and public gatherings, as well as a brief pause in business and school activities at 11 a.m.
On November 11, 1921, an unidentified American soldier killed in the war was buried at Arlington National Cemetery near Washington, D.C. On the same day the previous year, unidentified soldiers were laid to rest at Westminster Abbey in London and at the Arc de Triomphe in Paris.