News
Brokers consult with US officials on restoring Gulf maritime trade
Insurance broker Marsh said on Wednesday it had met with U.S. officials to explore solutions for restoring maritime trade amid escalating fighting in the Middle East, as attacks in the region threaten energy shipments through the Strait of Hormuz.
The waterway, a critical chokepoint between Iran and Oman, carries about a fifth of globally traded crude oil and liquefied natural gas.
Shipping through the strait has slowed significantly following Iranian strikes on commercial vessels, raising concerns over prolonged disruption to global energy supplies.
Marsh, which helped establish an international insurance facility for Ukrainian trade in 2023, said it welcomed a recent directive from the U.S. International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime commerce in the Gulf.
Insurance broker Aon is also in talks with the U.S. government on a plan to help insure tankers navigating the Strait, Bloomberg News reported on Wednesday.
Aon did not immediately respond to Reuters’ request for comment on the report.
The U.S. has not formally declared war on Iran, but military tensions have intensified. On Tuesday, President Donald Trump said the U.S. Navy could begin escorting oil tankers through the Strait of Hormuz if necessary, adding that he had directed the DFC to mobilize support for affected trade.
US insurance proposal may not be enough to restart shipping through the Strait of Hormuz
Morningstar DBRS, the international credit ratings and research firm, has said that a proposal by the government of the United States to support insurance for vessels travelling through the Strait of Hormuz may not be sufficient to rapidly restore commercial navigation in the region.
In recent commentary, Morningstar DBRS states that the escalation of conflict in the Middle East has significantly disrupted shipping through the strategic waterway, which normally carries around one fifth of global oil supply as well as substantial volumes of seaborne gas.
Morningstar DBRS explains that the deterioration in the security environment has sharply increased the risks facing commercial shipping. The firm says that several marine insurers have either withdrawn or restricted war risk cover for vessels operating in the Gulf region, leaving shipowners with limited options for insurance protection.
According to Morningstar DBRS, this has contributed to a growing number of vessels remaining anchored outside the strait as operators weigh the dangers of entering the area. The firm notes that oil tankers have already been targeted during the conflict, reinforcing concerns about potential loss of life, environmental liabilities and the destruction of high value maritime assets. Morningstar DBRS adds that although some cover remains available, the cost of war risk insurance has increased considerably.
Allstate must face privacy lawsuit over cellphone tracking of drivers
Drivers said Allstate tracked their movements to raise rates
Allstate (ALL.N), opens new tab must face a privacy lawsuit accusing the home and auto insurer of illegally tracking drivers through their cellphones without consent, using their data to raise premiums or deny coverage, and selling the data to other insurers.
In a decision on Tuesday, U.S. District Judge Jeremy Daniel in Chicago said drivers in the proposed class action can try to prove that Allstate violated the Federal Wiretap Act by monitoring their travel locations, trip distances, speed, acceleration, braking, phone usage and attention to the road, and tried to monetize that data to boost profit.
Drivers can also try to show that Allstate's data analytics unit Arity violated the federal Fair Credit Reporting Act by inaccurately reporting their driving behavior, including when they rode as passengers.
According to the complaint, Arity's tracking software was integrated into apps such as Fuel Rewards, GasBuddy, Life360 and Allstate-owned Routely. The judge also let drivers pursue claims under the laws of 20 U.S. states. He dismissed three of the drivers' 38 claims.
Insurers such as Allstate, Progressive (PGR.N), Berkshire Hathaway's (BRKa.N), and Geico use so-called telematics in monitoring drivers' habits. They say the technology rewards good driving through lower premiums.
Financial Results
Liberty Mutual Insurance Reports Fourth Quarter and Full Year 2025 Results
Liberty Mutual Holding Company Inc. and its subsidiaries (collectively "LMHC" or the "Company") reported net income attributable to LMHC of $1.699 billion and $6.792 billion for the three and twelve months ended December 31, 2025, versus income of $1.239 billion and $4.383 billion for the same periods in 2024.
"> We made measurable progress on underwriting profitability in the fourth quarter, delivering a consolidated combined ratio of 85.0% and net income attributable to LMHC of $1.7 billion," said Tim Sweeney, Liberty Mutual Chairman & Chief Executive Officer.
"The 6.5-point improvement in our combined ratio for the quarter was supported by favorable prior-year development and lower current-year catastrophe activity, while the underlying combined ratio of 91.4% reflected the impact of investments we're making to support growth initiatives. Investment results, including $790 million of limited partnerships income in the quarter, continued to provide a meaningful earnings tailwind.
As we reflect on the full year's results, the consolidated combined ratio of 88.4%, notably ahead of our 95% target in 2025 that was established three years ago, represents the lowest in recent history and an acknowledgement of the effort put forth by our people to build an underwriting culture that our policyholders deserve. We know the path ahead will not be easy, but we feel better positioned now than ever before to meet those challenges head on. We will continue to pursue disciplined, targeted growth where we feel we have a clear advantage and maintain the capital strength to serve our customers for years to come."
Climate/Resilience/Sustainability
Tornadoes and Insurance | III
March marks the start of tornado season and severe storms can develop quickly with little warning.
Each year, about 1,200 tornadoes with wind speeds as high as 300 mph touch down in the United States. Though potentially not as damaging as hurricanes, tornadoes are more frequent. They can cause severe damage over a small area and, particularly before the advent of tornado warnings, many deaths. In the decade, 1965-1974, they were responsible for an average of 141 deaths each year, compared with 57 in the 10 years 1995-2004. The peak of the tornado season is April through June or July. S
Spring tornadoes tend to be more severe and strike the Southeast, which is more densely populated than the Great Plains, thus causing more deaths than those in the summer months. In addition, the South has more mobile homes than other regions. Mobile homes are vulnerable to tornado damage. Since 1990 the number of tornadoes has generally exceeded 1,000 a year. In the three preceding decades, the only year in which there were more than 1,000 tornadoes was 1973, when 1,102 were reported. This increase may reflect greater ability to detect tornadoes.
Research
Property, Auto Insurance Shopping Up as Consumers Feel Economic Pressures
Looking for deals, consumers are increasingly shopping year-round for home and auto insurance, bucking seasonal trends and insurer expectations.
Elevated insurance shopping trends seen throughout 2024 and earlier in 2025 continued through the end of the year, prompting questions about whether the surge should be viewed as a temporary lift or permanent shift in consumer behavior, according to Q1 2026 Insurance Personal Lines Trends and Perspectives from TransUnion.
Auto and property shopping saw a year-over-year increase of 10.6% and 5.3%, respectively.
Q4 data showed shopping exceeded the usual end-of-year numbers and given the decelerating rate of growth in shopping reported throughout 2025, the TransUnion report suggests that the year-end increase indicates a significant shift in consumer behavior.
New Report From Experian Automotive Highlights Growth in Subprime Vehicle Financing
As the automotive industry continues to navigate affordability challenges and adjust to changing market conditions, subprime consumers re-emerge as a viable in-market shopper. According to Experian’s (LSE: EXPN) State of the Automotive Finance Market Report: Q4 2025, subprime borrowers made up 15.31% of total vehicle financing, up from 14.54% in Q4 2024. This represents subprime consumers’ largest share of the total vehicle finance market in the fourth quarter since 2021.
“Recent growth in the subprime segment reflects sustained consumer demand for vehicle financing, even as market conditions continue to shift,” said Melinda Zabritski, Experian’s head of automotive financial insights. “As affordability remains top of mind, both lenders and consumers are adapting, reflecting broader trends in credit patterns and vehicle financing behavior.”
For new vehicle financing, the subprime market grew to 6.61% in Q4 2025, from 5.74% last year. Meanwhile, there was a slight decline in prime, going from 36.49% to 35.33% in the same time frame. Similarly on the used side, subprime borrowers increased to 22.47% during the quarter, from 22.11% in Q4 2024, and prime went from 36.75% to 35.88%.
Financing trends in the current automotive market
In the fourth quarter of 2025, the average loan amount for a new vehicle increased $1,882 year-over-year, reaching $43,582. The average monthly payment for a new vehicle increased $21 to $767 during the same period, while the average interest rate was at 6.37% this quarter, from 6.34% last year.
Used vehicle financing saw a slight uptick in the average loan amount, increasing $872 from a year ago to $27,528 in Q4 2025. The average monthly payment increased to $537, from $528 and the average interest rate declined from 11.63% to 11.26% year-over-year.
Only 3 in 10 Americans Review Insurance Annually - IA Magazine
Only 3 in 10 Americans (31%) review or shop for insurance each year, with many waiting until premiums increase, major life changes occur, or coverage issues arise, according to new Big “I” survey, which found that despite the central role insurance plays in Americans’ financial lives, their insurance policy is something people only reach for when there’s a problem.
Nearly 9 in 10 Americans (88%) say having insurance is very or somewhat important to their financial security, according to the survey. Yet infrequent coverage reviews leave consumers missing opportunities to better understand what they’re paying for, manage costs or ensure coverage still reflects their needs. For many consumers, coverage reviews remain reactive rather than routine. Without regular reviews, coverage can quietly drift out of sync with a consumer’s financial situation, assets, or priorities—often going unnoticed until a claim, premium increase or coverage issue brings it to the surface.
“In today’s insurance market, standing still can cost you,” said Charles Symington, Big “I” president & CEO. “When policyholders sit down regularly with a trusted insurance advisor, they can better understand their options and potential coverage changes. These insurance reviews can be invaluable in helping consumers protect what matters most. Unfortunately, this new research shows too many people miss out on these important discussions.”
8 U.S. states with the highest uninsured motorists
The number of U.S. states where more than 20% of drivers are uninsured has more than doubled since 2022, according to a study by U.S. News & World Report.
Several factors may contribute to the increase in uninsured drivers, the data showed, including housing costs, poverty rates and the cost of car insurance. Meanwhile, penalties vary by state and driving without insurance can result in fines, license and vehicle registration suspension, and disqualification from receiving payment from an at-fault driver's insurer after an accident.
"There is also a correlation between the escalating high cost-of-living expenses, stagnant wages and other issues straining the average household budget, indicating that despite the dangers of driving uninsured, car insurance seems to be an expense some people are willing to cut when trying to balance their budget," U.S. News & World Report's Rachael Brennan told PropertyCasualty360.com.
US insurance industry sees receiverships double in 2025
Receivership activity in the US insurance industry surged in 2025, with 10 companies placed into liquidation or rehabilitation — double the number in 2024.
Specifically, regulators placed eight insurers into liquidation and two into rehabilitation during the year. By comparison, only one company entered liquidation and four underwent rehabilitation in 2024.
Despite the increase in receivership cases, the net total assets of companies placed into receivership in 2025 were significantly lower at $275.4 million, compared with $5.61 billion in 2024.
Eight of the 10 companies put into receivership in 2025 were property and casualty (P&C) companies, with the remaining two being health insurers.
This marks a continuation of the trend observed since 2017, in which P&C insurers have comprised the majority of companies entering receivership. This pattern was briefly interrupted in 2024, when three life insurers outnumbered two P&C underwriters.
Legal System Abuse/Social Inflation
The Strain From Surging Subpoena Volumes
Subpoenas are a routine part of claims investigations, coverage disputes and regulatory inquiries. What isn't routine is the pace at which they're arriving.
A new analysis from Wolters Kluwer CT found that U.S. subpoena volumes reached 498,000 in 2025, with growth accelerating year-over-year. After a brief 3% dip in 2020, volumes have climbed every year since, growing 13% in 2023, 10% in 2024 and 8% in 2025. Insurance is absorbing more of that increase than any other sector.
Insurance-related subpoenas grew 65% between 2019 and 2025, making them the fastest-growing category in the data. Roughly 80% of that activity is concentrated in California, Florida, Georgia and Texas. Each of these jurisdictions has its own combination of regulatory activity, litigation trends and natural disaster exposure fueling the increase.
Florida saw the sharpest increase of any state, with volumes up 86% since 2019. Hurricane claim investigations, growing demand for insurance-related records and a wave of litigation filed ahead of major tort reform measures all contributed. Much of this reflects heightened scrutiny from state regulators examining how insurers handle claims in disaster-affected areas, which generates a downstream surge in records requests and legal process activity.
The implications extend beyond claims departments into insurance legal operations and compliance.
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