News
US P/C insurers post $84B underwriting gains over two years after $51B losses
The US property/casualty insurance industry achieved its strongest performance in a decade during 2025, driven by improved underwriting and pricing, according to an AM Best report. The sector generated $84 billion in underwriting gains over 2024-2025, reversing $51 billion in losses from 2021-2023.
Personal lines underwriting profit nearly quadrupled to over $45 billion in 2025, whilst commercial lines profit more than doubled to over $19 billion. Private passenger auto insurers saw particularly notable improvements, with combined ratios falling well below 100 in 2024-2025 after exceeding that threshold for three consecutive years.
The turnaround was aided by significant rate momentum and the adoption of technology and data analytics for underwriting, claims handling and ratemaking. However, casualty lines including commercial auto liability remain pressured by adverse development and elevated claims severity.
P&C industry's best decade performance hides a casualty problem
The turnaround began in 2024 with a $45 billion net underwriting gain and extended through 2025. That result held despite the Los Angeles wildfires, which produced material losses in the first part of the year. AM Best detailed the findings in its Best's Special Report, 2025 P/C Snapshot: Strongest Performance in a Decade Showcases Resilience.
Personal lines led the recovery. The segment's underwriting profit nearly quadrupled to more than $45 billion in 2025, while commercial lines profit more than doubled to over $19 billion.
Private passenger auto posted one of the most-watched recoveries in the sector. The line's combined ratio fell well below 100 in both 2024 and 2025, after exceeding that threshold in each of the prior three years.
State News
Triple-I: Louisiana Insurance Reforms Begin to Deliver Rate Relief, but Challenges Remain Due to Impacts of Legal System Abuse, Fraud
Louisiana's property/casualty (P/C) insurance market posted its first broad rate relief this decade in 2025, but headwinds caused by legal system abuse persist, according to a new members-only Issues Brief published today by the Insurance Information Institute (Triple-I).
“The work is far from finished in Louisiana. Legal system abuse remains deeply embedded in the state’s claims environment and more legislative action is needed to make insurance more affordable for Louisianans."
P/C premium rates fell statewide across all lines combined by an average of 0.4% last year, reversing a pattern of consistent increases from 2021 through 2024. The most dramatic improvement came in private passenger auto, where premiums dropped an average of 5.8%, generating a statewide reduction of more than $340 million.
Triple-I’s analysis of S&P Global Market Intelligence data showed approved personal auto insurance premiums in effect in the Pelican State have fallen 3.9% year-to-date as of May 2026, building on a 2.5% average decrease last year. The gains reflect declining accident frequency and early benefits from legislative reforms targeting legal system abuse.
Suit accuses Allstate of underpaying claims; similar case against State Farm advances -
Allstate Insurance Co. was accused Tuesday of engaging in a scheme to pump up corporate profits by underpaying on claims filed by Oklahomans to cover storm damages on homes.
Attorney General Gentner Drummond filed a lawsuit in Cleveland County alleging that Allstate employed a "disaster payment minimization scheme" designed to reduce claim payments and increase profits.
Similar lawsuits, including one filed by a Broken Arrow couple, have been filed against State Farm Fire and Casualty.
In the Allstate suit, Drummond accused the company of selling homeowner policies that were supposed to provide replacement cost coverage on storm damages, but using "undisclosed" internal standards and claims-handling practices to limit coverage and reduce payments on claims.
Telematics, Driving & Insurance
Driving risk is evolving, and driving behavior data reveals what’s changing - Arity
Auto insurers: Driving risk is changing fast. Mobility data shows shifting exposure and what’s at stake if you lack driving intelligence.
For decades, auto insurance risk assessment relied on relatively static assumptions: how often people drive, when they commute, and which behaviors signal higher risk. But those assumptions are no longer holding. Driving risk is changing faster than traditional models can absorb — and the consequences of lagging are showing up in losses and missed opportunities.
Our ongoing driving intelligence reporting makes this clear: Driving behavior is not only changing, it is changing unevenly, sporadically, and in ways that traditional proxies may not detect. For insurers, keeping one’s finger on the pulse of real-world risk now requires continuous visibility into mobility patterns — not ad hoc recalibration.
The question is no longer whether driving risk data is changing. The question is whether your organization has the visibility to recognize those changes before they show up as vulnerable portfolios, losses, or emergency rate filings.
Arity
AI in Insurance
AI 'botsitting' is costing employee hours
A Glean report found that workers are wasting almost an entire workday on botsitting each week.
As HR has recently taken the helm of AI transformation at many organizations, driving adoption among employees has increasingly become a top priority. But as many workforces have now deployed AI across their practices, the challenge is shifting — it's no longer just about getting workers to use AI, but doing so in an efficient and effective way that captures its potential.
A new report from Glean highlights the predicament facing HR and focuses on a phenomenon Glean calls "botsitting." The good news is that employees are incorporating AI to drive efficiencies in their work. About 87% of the 6,000 digital workers surveyed are using AI at work, and about three-quarters say it can make them more productive, saving them about 11 hours a week. Yet, just 13% say the use of AI has improved their organization's performance, as the productivity gains are often offset by losses, as workers supervise, and sometimes correct, the work of their AI tools.
What is botsitting?
Researchers define botsitting as: "the work required to make AI usable, including feeding it missing context, checking its outputs, debugging its mistakes, rerunning prompts and cleaning up the confident-but-wrong answers AI leaves behind."
Eva Spatz, vice president, head of people experience at Staffbase, tells HR Executive that botsitting is "fundamentally an HR issue." It stems from a lack of trust and psychological safety, not a "software glitch."
Are insurers cutting jobs before AI proves its value?
Insurance companies are increasingly linking workforce reductions to AI, even as emerging research suggests cutting jobs may do little to improve the returns generated by the technology.
Approximately 80% of organizations that have piloted or deployed autonomous business capabilities have carried out workforce reductions, according to Gartner research. However, firms generating stronger returns from autonomous technology recorded almost the same rate of job cuts as those achieving modest or negative results.
Tens of thousands of positions have been lost across insurers, brokers and health plans since the end of 2024. Several companies have explicitly identified AI or automation as a factor behind restructuring.
Acrisure announced in May 2026 that it would eliminate 2,250 jobs, representing about 11% of its global workforce. The reductions, which are expected to continue through 2027 and concentrate heavily on US operations, followed an earlier cut of 400 accounting and back-office roles in October 2025.
AI's dual reality: Efficiency for insurers, disruption for agents
AI is actively reshaping how life and health insurance is sold, underwritten, serviced and regulated.
Artificial intelligence is no longer a buzzword reserved for technology conferences and corporate strategy decks. It is actively reshaping how life and health insurance is sold, underwritten, serviced and regulated. Those who understand the technology and how to implement it wisely will be better positioned for the future of insurance distribution.
AI is already inside the industry's core operations
Machine learning and AI are embedded in the daily operations of insurers, administrators and distributors across the industry. Underwriting has seen the most dramatic transformation. AI-driven platforms now pull information from electronic health records, prescription histories and wearable device data to render near-instant decisions -- often without a medical exam -- cutting underwriting and claims processing times by up to 40%.
The competitive gap between early adopters and laggards is widening rapidly. Claims management is similarly evolving. AI models triage incoming claims, flag fraud and billing anomalies, and in some cases adjudicate straightforward claims end-to-end with limited human involvement. For health insurers, this has significant cost management implications at a time when medical claim inflation continues to accelerate.
Cyber Risk
PRIVACY ALERT: Cambridge Mobile Telematics Under Investigation for Data Breach — Schubert Jonckheer & Kolbe
We are investigating a data breach that led to unauthorized access to the sensitive information of individuals affiliated with Cambridge Mobile Telematics (“CMT”), a Cambridge, Massachusetts-based telematics and insurtech company.
On June 2, 2026, the ransomware group CoinbaseCartel claimed responsibility for a cyberattack against CMT and threatened to leak sensitive data unless the company entered into negotiations. The claim has been tracked by cyber threat intelligence sources such as Ransomware.live.
As of this writing, CMT has not confirmed the incident or notified affected individuals, which may violate federal or state data breach notification laws. The following data may have been compromised in the breach: driving behavior information, including trip logs, acceleration and braking patterns, and mobile phone distraction events; location information, including GPS coordinates, travel routes, and location history; and personally identifiable information, including user profiles, insurance-related information, and account details.
Cyber Insurance Loss Ratios Rise as Pricing Cuts Erode Premium Growth
The U.S. cyber insurance market is facing mounting losses and structural shifts as price declines outpace premium growth, according to AM Best.
The U.S. cyber insurance market's loss ratio hit its highest level since the pandemic-era ransomware surge, as sustained price declines outpaced premium growth, according to an AM Best market segment report, as reported by Risk & Insurance.
The big picture: Cyber insurers are grappling with a market that’s splitting in two: one built on standalone cyber policies sold largely through surplus lines, another on endorsements bundled into broader commercial coverage.
Persistent rate softening, combined with claims shifting toward more complex, slower-developing third-party incidents, is straining profitability just as emerging threats like deepfake-enabled fraud and AI-assisted data theft threaten to extend loss timelines further.
Recommended Events
ITC Vegas | Horizon of Possibilities
ITC Vegas September 29, 2026 - October 1, 2026
The largest insurance innovation event in the world - Predict, Prepare, Progress
From the shore, the ocean can appear calm. Yet, under the surface, tectonic plates shift, pressure builds, and currents redirect—long before we detect movement. That’s insurance right now. Climate, technology, regulation, and human behavior are reshaping risk in real time. Change isn’t coming; it’s already here. The real question is how we move forward.
We set our sights on the horizon and turn insight into action.
‘Connected’ proudly sponsors ITC Vegas 2026. Rate Discounts available for ‘Connected’ followers, please contact Alan Demers