2026 Outlook/Predictions
J.D. Power: Rate pressure, customer retention and digital engagement top 2026 insurance industry challenges
After five years of unprecedented volatility, insurers are beginning to see the consequences of gradual but consistent premium hikes, according to J.D. Power.
“Faced with bigger bills, customers have come to expect more from their insurers,” J.D. Power wrote in a recent article. “Now more than ever, insurers that fail to provide compelling offers to customers will send them rushing into the waiting arms of a company that will.”
J.D. Power found that the percentage of customers who shopped for auto insurance hit record-high levels at 57% in 2025, up from 49% in 2024.
“However, unlike past years — when switching lagged shopping — customers are finding better prices in the market, which will put further pressure on insurers in 2026,” the article states.
In addition, insurers are beginning to see customer attrition among their most valuable customers – those who are more likely to bundle products and are highly loyal. J.D. Power says the attrition is driven by premium hikes.
“With price volatility likely to remain a factor in 2026, insurers must find ways to focus their efforts on retaining these customers,” the article states.
J.D. Power also found that the use of digital channels and technology is vital to customer satisfaction.
Overall, 47% of all insurance policy buyers now purchase through digital channels compared to 35% through agents. Customers are forming new habits and opinions in their use of tech, which provides an opportunity for insurers to tailor their offerings, the article states.
J.D. Power’s new “Insurance Intelligence Report” found that premiums drive satisfaction, even among high-value customers. CONTINUES
News
Sixth Circuit to review class certification in State Farm vehicle value suit
The Sixth Circuit Court of Appeals agreed Thursday to reconsider class certification granted to plaintiffs suing State Farm over the values it assigns to totaled vehicles.
The decision vacated a three-judge panel decision on Oct. 9, 2025 to uphold class certification in the case of Clippinger v State Farm Auto Insurance Co. In its place, the appeals court will conduct an en banc review – a proceeding before all active judges in the circuit – on March 18.
Most other courts – including the Third, Fourth, Seventh, and Ninth Circuits – have recently ruled in favor of State Farm and other insurers like Progressive in rejecting class certification in vehicle total loss lawsuits.
Financial Results
The Hartford Q4 Net Income Up 33% Led by Business Insurance
Net income at The Hartford increased 33% to about $1.1 billion in the fourth quarter 2025.
Property/casualty written premiums increased 5% compared to Q4 2024, led by growth of 7% in the business insurance segment.
CEO Christopher Swift said results were “driven by excellent performance in business insurance,” and a “pivotal year in personal insurance that restored target profitability in auto.”
The Hartford’s business insurance and personal insurance segments turned in Q4 combined ratios of 83.6 and 79.6, respectively. These results were improvements of 3.8 and 6.2 points. For the year, the combined ratios were 88.3 and 91.9, respectively. CONTINUES
Commentary/Opinion
2026: The Year AVs Go Mainstream | Insurance Thought Leadership
Relentless technological advances for autonomous vehicles have now picked up a tailwind as public perceptions are improving.
Even as I've tracked every twist and turn in the technology for autonomous vehicles for going on 15 years now, the key development I've been waiting for occurred, not in the lab or on the road, but in a recent op-ed in the New York Times. In it, a neurosurgeon made the case for AVs as a "public health breakthrough."
He said he was horrified by the more than 39,000 deaths from motor vehicles just in the U.S. last year, "more than homicide, plane crashes and natural disasters combined.... These crashes are also the leading cause of spinal cord injury. We surgeons see the aftermath of the 10,000 crash victims who come to emergency rooms every day. The combined economic and quality-of-life toll exceeds $1 trillion annually, more than the entire U.S. military or Medicare budget."
Then he made the sort of case technologists have been making for years about the potential for AVs to drastically reduce death, injuries and property damage... but this time it came from a doctor.
And he framed his case as a public health issue, the sort of effort government gets behind and citizens appreciate, even if they may discount the claims they hear from those they see as techno-optimists and rapacious capitalists.
Based on other favorable press in recent weeks and on the relentless rollouts of robotaxis planned for this year, I think we're seeing a sea change. Arthur C. Clarke famously wrote that "any sufficiently advanced technology is indistinguishable from magic," but, over time, the magic wears off, and wildly advanced technologies begin to seem almost normal.
AVs are now being normalized to the point where I think the clock has started ticking on what will be a fundamental rewiring of the auto--and auto insurance--landscape.
Paul Carroll,, editor-in-chief, Insurance Thought Leadership
Homeowners outraged by insurance companies' actions after devastating fires: 'We thought we could trust the system'
People in California who lost their homes to the wildfires of early 2025 have been struggling ever since to make ends meet, and their insufficient insurance is a big reason why.
For homes in high-risk areas, many insurance companies dropped their coverage just in time for the devastating L.A. fires to sweep through and destroy everything in their path.
What's happening?
According to The New York Times, "Thousands of Californians affected by the fires … say a broken insurance market is hampering their ability to rebuild their lives."
With the worry of insuring homes like those burned down last year, insurance giants such as State Farm stopped insuring properties they deemed not worth the risk.
As a result, many who were originally under their insurance plans were instead left with the FAIR (Fair Access to Insurance Requirements) plan — a last-resort state fire insurer.
However, the FAIR plan was not enough to cover many homeowners' losses.
In fact, The New York Times wrote: "More than 8 out of 10 of those whose homes were destroyed by the fires in … Los Angeles are still displaced, and 70% of insured … survivors have faced delays in receiving insurance payments or denials of coverage."
Entity Resolution Transforms Risk Management | Insurance Thought Leadership
Entity resolution and digital domain mapping bridge the physical and digital divide, transforming fragmented data into comprehensive risk intelligence.
Executives in every industry grapple with fragmented information streams that obscure the full picture of customers, competitors, vendors, and risks.
They want pictures of places with perils, proximity, price, sanctions, anti-corruption, regulation, crime, and compliance. Those map the playing field.
They need profiles of players on that field. Best, worst, and next customer, competitor, consortium, and criminals. Active, passive, and latent friction on the field of business and nature.
What are the risks they need to manage themselves? Which risks can be transferred with insurance? How do things change over time? When and why should they adopt new tactics?
Nobody builds or operates anything without risk management and insurance.
Marty Ellingsworth is president of Salt Creek Analytics. Jay Mullen is head of strategic accounts – risk at Esri.
AI in Insurance
AI is a resource, but it will never replace actual insurance agents
Beyond Transactions: Here's how independent insurance agents and AI are reshaping the business.
It's no secret that insurance premiums across all P&C lines are on the rise. In the past year, nearly half of homeowners insurance customers in the U.S. saw a rate spike, according to J.D. Power. And car insurance premiums have increased sharply and consistently since 2022, the Bureau of Labor Statistics (BLS) reports.
In light of these skyrocketing rates, more consumers are shopping around to compare quotes and find the most affordable policies. Many are also turning to independent insurance agents who can offer more choices and ultimately, better outcomes.
Unlike captive agents — who sell a single insurance product — independent agents can compare offerings from multiple carriers to help insurance shoppers pinpoint the best fit for their needs.
As consumer demands change in this evolving insurance landscape, independent agents are poised to offer increasingly more value to consumers and drive further growth in the space.
InsurTech/M&A/Finance💰/Collaboration
TPG launches tech-focused insurance platform Third Wave Insurance
TPG has entered the retail insurance distribution arena with the launch of tech-focused insurance platform Third Wave Insurance.
The move drops another deep-pocketed, private equity-backed player into an already crowded US brokerage landscape.
Third Wave Insurance is led by founder and CEO Brian Bair, a veteran of the US insurance distribution space. Its inaugural deal sees the platform partner with Palmer & Cay, which will serve as the company's flagship retail business. Palmer & Cay will retain its brand and continue under the leadership of CEO Jack Cay.
“Together with Brian and Jack, we have established a shared vision for a technology-enabled, highly professionalized insurance brokerage platform,” said BJ Loessberg, business unit partner at TPG Growth. “Throughout its 150+ year history, Palmer & Cay has built a client-focused culture that is fueled by attracting and developing top industry talent. Their team is an ideal anchor partner for Third Wave Insurance, and we see a significant opportunity to build on their impressive momentum, while scaling the platform through both organic and inorganic expansion.”
Bair framed the launch as the next step in a long cycle of broker transformation.
When Raises $10M Series A to Transform Employee Health Benefits During Critical Moments
Company expands offerings to make insurance more flexible and affordable as economic uncertainty and skyrocketing healthcare costs disrupt workforce.
When, a workforce transitions platform to reduce healthcare costs, today announced it has raised $10.2 million in Series A funding. The round was co-led by Des Moines-based ManchesterStory and Chicago-based 7wire with participation from new investor Mairs & Power Venture Capital and existing investors B Capital, Enfield Capital Partners, TTV Capital, and Alumni Ventures.
With 4X revenue growth year over year, customers including Varsity Brands, Iowa State University, and West Monroe, and its partnership with isolved, When has proven itself as the leader in benefits for health coverage transitions, saving money for both employees and employers on their healthcare costs.
“We couldn’t be more grateful to have the support of investors like ManchesterStory and 7wire on our side,” said Andy Hamilton, Co-Founder and CEO of When. “Their expertise in health insurance and health tech respectively, make them ideal partners to help When achieve its next phase of growth.”
Fraud
NY governor wants to crack down on auto insurance fraud
NY governor wants to crack down on auto insurance fraud
New York Gov. Kathy Hochul plans to target auto insurance fraud in the state as a means to drive down rates for drivers.
Hochul announced last week that she wants to curb "runaway litigation" and staged accidents, often organized by fraud rings, in the state. Her plan includes strengthening state regulations and increasing investigations into alleged fraud. She said the state will also begin cracking down on physicians who provide fraudulent diagnoses for victims of fake crashes.
"These common-sense proposals will not only increase auto insurance transparency for New Yorkers, but they will also put money back into people's pockets, especially during a time when the cost of living is just too high," Hochul said at a press conference.
Allianz prevents 29% more fraud and announces partnership with Clearspeed
Allianz's personal lines business has reported a 29% 1 increase in fraud prevention in 2023 compared to the previous year. This spans across all types of insurance fraud from motor claims, home claims and application fraud, and the notable rise of ghost brokers and their tactics to lure innocent victims into a fake insurance policy.
Unfortunately, a landscape of rapidly evolving fraud tactics is evident, with fraudsters regularly adapting their methods to pursue new scams, including a rise in moped crash for cash fraud and an increase in shallow fakes. Cases where apps were used to distort real-life images, videos and documents increased by 300%2 from 2022 and into 2023, and has all the signs of becoming the latest big scam to hit the insurance industry.
In one case, an individual had a picture of his van posted on his social media page as part of his business, and had a claim pursued in his name for an accident that never took place. Received images of his vehicle from the fraudsters, showed the front bumper had been cracked in the alleged accident, along with a false repair invoice totalling over £1000. Noticing concerns with the claim, the fraud team investigated the case, identifying the image was identical to the one found on social media but with the addition of photo editing.
Ben Fletcher, Director of Financial Crime at Allianz’s personal lines business(pictured) MORE
People
CCC Intelligent Solutions Appoints Chief Product Officer to Scale AI-Driven Innovation Across the Industry | CCC Intelligent Solutions
Josh Valdez, an accomplished product leader experienced in delivering high‑impact solutions, joins CCC as Chief Product Officer
- Josh Valdez named Chief Product Officer of CCC
- Will lead CCC’s product strategy and scale AI-innovation
- Appointment effective February 16, 2026
CCC Intelligent Solutions Inc. (CCC), a leading cloud platform provider powering the P&C insurance economy, today announced the appointment of Josh Valdez as Chief Product Officer. Valdez will lead CCC’s product strategy, design, and delivery, with responsibility for scaling AI-driven technology and innovation across the company’s platform to accelerate value for customers.
Valdez is an experienced product innovator with a strong background in both building and scaling platform-based technology businesses. He brings deep expertise in artificial intelligence, including agentic AI, with a focus on designing solutions that enable effective collaboration between people and AI to improve outcomes, efficiency, and decision-making.
“The insurance and automotive industries are facing unprecedented complexity, which requires increasingly smarter and more connected solutions,” said Githesh Ramamurthy, Chairman and Chief Executive Officer of CCC Intelligent Solutions. “Josh brings deep experience building platform‑scale products and turning advanced technologies into solutions customers trust. His ability to combine human expertise with intelligent automation will be invaluable as he leads our product organization. We’re excited to welcome him to CCC and know he’ll have a meaningful impact on how we help customers serve consumers quickly and confidently when it matters most.”
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