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AM Best maintains stable outlook for US personal lines
Pricing gains and persistent loss pressures continue to challenge the marketInsurance NewsBy Josh RecamaraDec 01, 2025ShareAM Best has held its market segment outlook on the US personal lines sector at stable, noting that aggressive rate increases and portfolio management actions have significantly improved overall underwriting performance. According to the Best's Market Segment Report,"Market Segment Outlook: US Personal Lines Insurance,"carriers continue to focus on maintaining strong risk-adjusted capitalization, achieving consistent profitability and ensuring sufficient liquidity.These strengths are being tempered by persistently high loss cost severity driven by inflation and rising medical costs. Other challenges include ongoing severe weather events, economic uncertainty, including potential tariff impacts, as well as heightened market competition.AM Best’s director, Chris Draghi, explained that inflation had created a new norm to which rates needed to be aligned, with the elevated loss severity negatively impacting performance as rates caught up. He added that economic inflation, social inflation, and rising medical and casualty costs have significantly affected insurers’ loss reserve positions.Rate increasesThe outlook also highlighted regulators’ recognition of the need for rate increases amid macroeconomic trends. While regulators have been more accommodating than in previous cycles, implementation takes time, and insurers must allow higher rates to fully earn through to see financial benefits.Pricing has been central to carrier strategies, particularly as the operating environment shifts post-pandemic. Insurers moved from gradual rate adjustments to more aggressive pricing, resulting in the largest annual increases in direct premiums written, on a percentage basis, in 2023 and 2024 over the last decade.Draghi noted that premiums began to increase meaningfully in 2022 and have continued to climb since, but the pace appears to have slowed in 2025, particularly on the personal auto side, with negative rate filings appearing in some regions.AM Best emphasized that the stable segment outlook reflects expectations for market trends over the next 12 months. While the overall environment is considered neutral, this does not imply that all companies within the personal lines segment will maintain stable financial performance, the report said.Related StoriesUS life and annuity insurers hold firm as capital strengthens – AM BestAM Best revises US E&S lines outlook
2025-12-09 17:58:10
Data-driven seas: Behind the strategic pivot towards data-driven underwriting in marine insurance
Insurers turning to real-time visibility and aggregation modeling to navigate unprecedented volatilityMarineBy Gia SnapeDec 01, 2025ShareGlobal marine insurance premiums hit a record $39.92 billion in 2024, representing a 1.5% rate of growth compared to 5.9% recorded in 2023, and 8.3% the year prior, according to the International Union of Marine Insurance (IUMI).Amid slowing growth, competition is intensifying. Insurers are sharpening their focus on one advantage that is proving decisive: data.From real-time cargo tracking to sustainability-linked vessel retrofits, the industry is undergoing a structural shift toward analytics-driven risk management, according to Sam Hellebush (pictured), president, US Marine at Intact Insurance Specialty Solutions.“Everybody is moving toward more data-driven models,” Hellebush told Insurance Business America. “It’s not parametrics, but it aligns with that trend. The industry is trying to use data to get away from reactive remedies and be proactive to avoid the claim in the first place.”Real-time visibility reshapes marine riskIn marine insurance, few challenges loom as large as understanding cargo aggregation: the concentration of insured values across ships, ports, and key waterways. Real-time tracking technologies, once cost-prohibitive, are quickly maturing to respond to mounting losses at sea, according to Hellebush.“The technology exists to track individual shipments; it’s quite expensive,” Hellebush said. “As the cost decreases, you’ll see more take-up on the insurance or insured side. That’s important for many reasons, one of which is sustainability and the environment.”Climate change intensifies the need for such visibility. With the vast majority of global commerce moving through coastal, climate-exposed locations, insurers face heightened vulnerability to storms, sea-level rise, wildfire smoke disruptions, and extreme weather–induced port congestion.“Marine insurers specifically have an outsized interest in managing aggregations and addressing climate change,” he emphasized.Intact Insurance has reportedly invested roughly $500 million into elevating data quality. That investment, Hellebush said, is already reshaping underwriting confidence.“As we collect more and more of that data, the level of uncertainty surrounding a risk decreases,” he said. “When we can make a quality decision more frequently, we can pass cost savings on to the consumer.”Geopolitical tension accelerates the data raceApart from climate risk, supply chain disrurption stemming from geopolitical tensions have underscored the limitations of traditional, retrospective underwriting.The wave of attacks by Houthis on commercial shipping in the Red Sea since late 2023, for example, has radically altered how insurers view maritime risk. According to market sources, war-risk premiums for transits through the Red Sea have surged from around 0.3% of a vessel’s insured value to as high as 0.7%.In early July 2025, two vessels were struck by Houthi drones, missiles and explosive boats. One vessel was sunk; several crew members were killed or went missing, prompting fresh waves of underwriters to pause cover for certain transits. In response, many global carriers have rerouted around Africa’s Cape of Good Hope, but this detour adds thousands of miles to voyages, increases fuel consumption and voyage time, and further complicates logistics.Sustainability mandates are reshaping insurer-client relationshipsCompounding the security-driven volatility is the growing pressure of climate change and decarbonization. More shipping firms are exploring hybrid-electric propulsion, alternative fuels like hydrogen or ammonia, and other sustainability retrofits, especially as regulatory pressure mounts globally, driven by the International Maritime Organization (IMO)’s 2050 net-zero goals.Hellebush said insurers like Intact are already incentivizing such proactive adaptation: when retrofits are done properly, insurers can “digest the risk” and offer more competitive pricing. This aligns insurer and insured interests over fewer toxic emissions, reduced long-term risk, and a lower probability of costly claims.“Part of supporting retrofits requires us to educate ourselves,” Hellebush said. “When retrofits are done properly, and in a best-in-class manner, we can digest the risk and offer more competitive pricing.”A softening market meets an analytics revolutionIUMI has warned that, despite record premium volume, growth in the marine insurance sector is slowing amid overcapacity, especially in the cargo and hull & machinery markets. In this environment, differentiation increasingly comes from risk prevention rather than price.“We’re going to continue incentivizing proactive behavior,” Hellebush said. “Ultimately, if we’re paying fewer claims, we can pass those savings on to the customer.”Heading into the 2026 renewal season, Hellebush stressed that disruption means opportunity. For brokers, he said, the winners will be those who understand how data, sustainability, and emerging technology are reshaping both risk profiles and pricing models.“The industry has always been dynamic,” Hellebush reflected, going back to the Lloyd’s coffee house days.“The pace of change is accelerating, but it’s not something we should shy away from. Brokers should view this ongoing change as an opportunity.”Related StoriesGlobal marine insurance premiums hit record levels, but momentum ebbsConflict is reshaping global shipping routes and increasing marine insurance risks
2025-12-09 17:58:08
Asurion to acquire Domestic & General
The move signals major shift in appliance and device protection marketInsurance NewsBy Josh RecamaraDec 02, 2025ShareAsurion has agreed to acquire Domestic & General (D&G), a move that will create one of the largest global providers of appliance and device protection. The deal brings together two major subscription-based service businesses and marks a significant consolidation play in the extended warranty and protection market, particularly across the UK and Europe where D&G has long been a dominant player.Talks of the deal were initially reported last month. Terms of the deal were not disclosed but sources earlier told Bloomberg News that the deal being discussed will value the UK warranty business at £2.1 billion (US$2.74 billion).The purported combined business will offer protection for virtually every device and appliance in the home. This includes enhanced scale for repairs, claims handling, diagnostics, logistics and broader digital support. Asurion sees the acquisition as a step toward delivering integrated care across home technology and appliances, positioning itself as a single service provider for customers who increasingly rely on blended tech ecosystems.D&G brings a long-established presence in appliance care, with more than 110 years in the market and a service network of over 25,000 independent engineers. The company maintains partnerships with major manufacturers and retailers, a portfolio that includes brands such as Whirlpool, Sky, Hoover-Candy and John Lewis. Its long record of organic revenue growth and subscription-based model aligns closely with Asurion’s.Asurion CEO Guru Gowrappan (pictured, left) said the partnership strengthens the company’s ability to support every connected device and appliance. He noted that D&G’s market relationships and repair expertise complement Asurion’s technical capability and global service infrastructure.D&G CEO Matthew Crummack (pictured, right) said the two firms share a customer-led approach and a commitment to innovation, adding that joining Asurion creates new growth options while maintaining the trust the business has built with households and partners.The insurer-backed appliance care market has been evolving quickly as connected devices create higher service expectations and more complex protection needs. Asurion’s acquisition of D&G signals further integration between traditional appliance warranty operations and tech-driven device ecosystems.The deal could reshape competitive dynamics in the UK’s appliance protection sector, where D&G has long been the leading provider, and it may accelerate the shift toward data-driven diagnostics, predictive maintenance and multi-product protection bundles.The acquisition is expected to close in mid-2026, subject to regulatory approvals.Related StoriesAsurion announces layoffs amid restructuring effortsProtection business Asurion slashes headcount
2025-12-09 17:58:06
Nevada rewrites lung disease rules for cops, firefighters – insurers face penalties
The retroactive clause is where it gets interestingLegal InsightsBy Matthew SellersDec 03, 2025ShareNevada is expanding workers' compensation protections for first responders with a new law broadening lung disease presumptions for police officers, firefighters and arson investigators. On December 1, 2025, during Nevada's 36th Special Session, the Legislature enacted Senate Bill No. 7, sponsored by Senator Nicole Cannizzaro. The act amends NRS 617.455, which governs when diseases of the lungs are treated as occupational diseases resulting in compensation for temporary or permanent disability or death for certain firefighters, arson investigators, police officers and volunteer firefighters. The act becomes effective upon passage and approval. Under existing law, diseases of the lungs are occupational and compensable if caused by exposure to heat, smoke, fumes, tear gas or any other noxious gases arising out of and in the course of employment, for persons employed in specified roles for two years or more. These roles include full-time salaried firefighting or arson investigation for the benefit or safety of the public, acting as a volunteer firefighter entitled to benefits under Nevada's workers' compensation chapters, and full-time salaried employment as a police officer in the state. The key change is to the conclusive presumption in subsection 5. The amended language provides that a disease of the lungs is not required to be caused by exposure to heat, smoke, fumes, tear gas or any other noxious gases and is conclusively presumed to have arisen out of and in the course of employment for a person employed in a full-time continuous, uninterrupted and salaried occupation as a police officer, firefighter or arson investigator for two years or more before the date of disablement, if certain timing conditions are met. Those conditions are: the disease is diagnosed and causes disablement during employment; or, if the person ceases employment before completing 20 years of service, during a period after separation equal to the number of years worked; or, if the person completes 20 years or more of service, at any time during the person's life. Service credit purchased in a retirement system must not be calculated toward years of service. The law sets exclusions from this presumption. Frequent or regular use of a tobacco product within one year immediately preceding the filing of a claim, or a material departure from a physician's prescribed plan of care within three months immediately preceding the claim, excludes a separated person from the benefit of the presumption. Failure to correct predisposing conditions when ordered in writing by the examining physician also excludes the employee from benefits if the correction is within the employee's ability. The statute requires covered employees to undergo medical examinations paid for by the employer, with schedules varying based on role and age. A person determined to be partially disabled and incapable of performing work as a firefighter, police officer or arson investigator may elect to receive permanent total disability benefits under NRS 616C.440. A person who files a claim after retiring is not entitled to receive any compensation other than medical benefits. Senate Bill 7 also adds oversight and penalty provisions. If an employer, insurer or third-party administrator denies a claim and the claimant ultimately prevails, the Administrator may order payment of a benefit penalty of not more than $200 for each day from the date an appeal is filed until final adjudication, in addition to any benefits and fines under NRS 616D.120. The amendments apply retroactively to claims filed on or before the effective date. This legislative change marks a shift in how Nevada handles occupational lung disease claims for first responders, with direct implications for workers' compensation insurers, third-party administrators and public employers managing these exposures. Related StoriesNevada's payroll cap overhaul could spark confusion and cost hikes for small businessesNevada bill expands definition of casualty insurance to include legal expense coverage
2025-12-09 17:58:01
AI in insurance: Customers open but cautious
Data show consumers are most comfortable with AI handling routine insurance tasksTransformationBy Josh RecamaraNov 20, 2025ShareArtificial intelligence (AI) is increasingly shaping insurance interactions in the US, from virtual assistants to automated claim updates and customer service chatbots. While insurers see potential to improve efficiency, reduce costs and enhance service, policyholders remain cautious about how AI is applied and who ultimately benefits. J.D. Power data shows that consumers are most comfortable with AI handling routine insurance tasks. Sending automated claim status updates (24%), managing billing (23%), and answering basic service questions (21%) are widely accepted applications. These tasks provide tangible convenience for policyholders while allowing insurers to streamline operations and allocate human resources to more complex cases.Skepticism in claims and policy pricingMore critical insurance functions reveal a trust gap. Nearly half of respondents (47%) are somewhat or very uncomfortable with AI processing claims, signaling a preference for human oversight in decisions with financial or coverage implications.When it comes to pricing policies, one-third of customers believe AI use should be limited until ethical standards and bias safeguards are established, while 30% support partial AI use with strict oversight. Only 15% of consumers favor fully automated policy pricing. This highlights that underwriting, claims adjudication, and risk assessment remain areas where human judgment is highly valued.For insurance companies, these attitudes underline the importance of transparency and communication. AI can offer speed, consistency, and operational efficiency, but consumers expect fairness, accountability, and ethical safeguards. Insurers that clearly demonstrate the benefits of AI - such as faster claims resolution, reduced errors, and personalized service - are more likely to gain customer trust and adoption.Strategic opportunity in AI integrationBalancing AI-driven efficiency with strong oversight provides a competitive advantage. Insurers can leverage technology to enhance the customer experience while maintaining confidence in critical processes like claims management and policy underwriting.Companies that provide clear explanations of AI’s role, alongside human oversight, are best positioned to integrate advanced technologies without eroding trust.As AI adoption continues to grow in the insurance sector, the companies that succeed will be those that align innovation with customer priorities, ensuring that technology serves policyholders as well as operational objectives.Related StoriesHow AI-powered customer engagement and personalization at scale are reshaping global insuranceAnalyzing GEICO insurance rating: Is the insurer a strong fit for your clients?
2025-12-09 17:57:59
Alaska workers' comp rates drop nearly 5%
Favorable loss trends and lower accident frequency drive rates downWorkers CompBy Insurance BusinessDec 02, 2025Share.main_content .h1,.main_content h1{font-size:32px}.main_content .h2,.main_content h2{font-size:24px}.main_content .h3,.main_content h3{font-size:18px}.main_content .h4,.main_content h4{font-size:16px}The Alaska Division of Insurance has approved a substantial reduction in workers’ compensation rates, driven by continued favorable national trends in claim frequency and loss severity.The decision authorizes a 3.7% decrease in voluntary loss-cost rates and a 4.8% decrease in assigned risk rates, effective for the coming year.The rate adjustments reflect projections from the National Council on Compensation Insurance (NCCI) that forecast continued moderation in key cost drivers: a 6% decline in annual historical indemnity trends and a 5% decrease for medical loss trends.These figures align with recent history and take into account the offsetting factor of upward pressure on indemnity costs caused by growing wages.Underlying these forecasts are NCCI projections of a 3% decline in both frequency and indemnity severity, and a 2% decline in medical severity.Expense shifts and industry warningsWhile voluntary rates fell, the filing did detail some shifts in expense provisions for the assigned risk pool: the loss adjustment expense increased from 21.5% to 22.5%, and the administrative expense increased slightly from 4.1% to 4.3%.Despite the positive rate environment, some industry players voiced caution.During rate hearings, Alaska National Insurance Co. testified that a return of large-loss activity to long-term averages would exert pressure on the overall loss-cost level.Alaska National also warned that defense cost and containment expenses (DCCE) ratios have been elevated in recent years due to higher litigation costs.Should these trends continue, NCCI may increase DCCE provisions in the future, which would further put pressure on loss-cost levels.The rate decrease in Alaska mirrors a broader national trend.Favorable loss patterns - driven primarily by a three-decade-long decline in workplace accident frequency - have made workers' compensation a key profit driver for property/casualty insurers nationwide.According to AM Best analysis, the biggest factor has been the 70% decline in workplace accidents over the last 30 years. As long as this trend in continued improvements in workplace safety holds, the line is expected to see favorable financial results.Based on direct premiums written during 2024, the five largest writers of workers' compensation insurance in Alaska, according to Best Wire, were:CopperPoint Insurance Group: 30.35%Western National Insurance Group: 11.61%Liberty Mutual Insurance Cos.: 9.18%Berkshire Hathaway Insurance Group: 7.47%Amerisafe Insurance Group: 4.77%
2025-12-09 17:57:57
D&O claims rebound as boards face converging geopolitical, cyber and AI risks – Allianz
Report warns that director risk is widening as regulators sharpen their focus on key issuesProfessional RisksBy Kenneth AraulloDec 04, 2025ShareDirectors and officers are facing a wider set of exposures as political, economic and social uncertainties rise globally, Allianz Commercial said in its latest report.The carrier said shifts in financial, regulatory and legal environments can quickly feed through to corporate operations and to the personal liability of senior leaders.According to the report, D&Os can be held liable if they misjudge the impact of geopolitical developments on their company or fail to adjust to changing legal or regulatory requirements across jurisdictions. Such cases can trigger shareholder lawsuits or regulatory penalties against both the entity and individual decision-makers.Cyber risk has become a core focus for boards, with expectations for oversight rising alongside litigation and regulatory activity. Claims against directors have followed data breaches, ransomware incidents and technical glitches, with ransomware accounting for about 60% of the value of large cyber insurance claims above €1 million in the first half of 2025.If a cyber event leads to financial losses, directors may face claims from shareholders, customers or suppliers alleging that the board failed to implement adequate controls or business continuity planning. Exposures typically stem from the duty to oversee cyber security posture and governance at the enterprise level.Read more:D&O in the AI era – Insurers zero in on corporate disclosures“Directors and officers (D&O) liability continues to develop at pace, with an evolving regulatory and litigation environment, an increasingly complex risk landscape, and an uncertain geopolitical and economic outlook,” said Jarrod Schlesinger (pictured above), global head of financial lines and cyber at Allianz Commercial.He said the frequency of new claims is now approaching or exceeding pre-pandemic levels in most regions, and that claims severity remains an issue in North America.Allianz’s findings on cyber governance sit alongside a broader shift in how underwriters view emerging technologies, particularly artificial intelligence.Market commentary indicates that while D&O pricing for many buyers remains generally flat to down 5% at 2025 renewals, insurers are tightening scrutiny on AI-related disclosures, as well as on cryptocurrency, IPO and SPAC exposures, and are handling claims with greater diligence after several years of softer premium conditions.Insolvency and other rising threats to D&OAllianz identified insolvency as a major source of D&O claims, alongside regulatory enforcement actions and allegations of breach of fiduciary duty, misleading disclosure or negligence.Citing Allianz Trade figures, the report said global business insolvencies are forecast to rise by 6% in 2025 and 5% in 2026, marking five consecutive years of increases and pushing insolvencies to 24% above the pre-pandemic average, with concentrations in automotive, construction, retail and consumer goods.In a companion analysis focused on regional trends, Allianz noted that higher borrowing costs and inflation are pressuring balance sheets, particularly in real estate, construction and consumer-facing industries, and that rising bankruptcies often translate into D&O claims as stakeholders seek accountability for alleged mismanagement or fiduciary breaches.The report also flagged ongoing geopolitical tensions and AI disclosure issues as additional potential triggers for future board-level litigation.Read more:Key risks challenging D&O insurance“Managing a multinational corporation has never been more challenging, as leaders find themselves caught between conflicting governmental priorities and policies across the globe, and trade tensions and fiscal challenges weigh on the economy,” said Dan Holloway, head of management liability commercial and professional indemnity at Allianz Commercial.He said directors should understand “expanded fiduciary duties in the event of an insolvency,” seek expert advice, and keep detailed records of key decisions.Looking ahead to 2026, Schlesinger said corporate management will operate against a backdrop of “converging economic uncertainty, rapid technological change, and evolving regulatory expectations.”He said robust governance and risk management, supported by tools and expertise to “identify, manage and communicate these future risks to stakeholders,” will be central to how boards respond.Related StoriesD&O in the AI era: Insurers zero in on corporate disclosuresAllianz identifies key risks challenging D&O insurance in 2025
2025-12-09 17:57:52
Florida lawmakers propose mandatory human review for claim denials
The robots aren’t taking over – the humans areClaimsBy Matthew SellersNov 28, 2025ShareFlorida lawmakers aim to restrict automated claims decisions, with a bill requiring human professionals to make all claim denials.House Bill 527, sponsored by Rep. Hillary Cassel and filed on November 24, 2025, would require that every claim denial in the state be made by a qualified human professional, not a computer system acting alone. The legislation is proposed to take effect on July 1, 2026.The bill imposes a clear requirement: automated tools can assist in the claims process, but they cannot be the sole basis for denying a claim.For insurance professionals operating in Florida, one of the nation's largest insurance markets, the implications are significant. The bill would require carriers to maintain human involvement in their claims operations whenever a denial decision is made.The legislation establishes specific definitions for the tools it restricts. An algorithm is a mathematical process designed to produce specific results. An artificial intelligence system is a machine-based tool that can generate outputs like predictions or recommendations that influence decisions. A machine learning system is an AI tool that learns from data without being explicitly programmed. Under the bill, none of these could serve as the sole reason for denying a claim.Before making any decision to deny a claim or part of a claim, a qualified human professional must first analyze the facts and policy terms independently of any automated system. They must then review whatever the algorithm or AI tool produced to check for accuracy. If another person already reviewed the claim, that human professional must conduct their own review as well.This requirement means companies cannot rely on an algorithm to filter claims and then have a human approve the decision without independent analysis. The human reviewer must conduct substantive work.Insurers will also face new documentation obligations. Companies must maintain detailed records showing who made each denial decision and who reviewed it, along with the date and time. They must document the basis for every denial, including any information provided by automated systems, creating an audit trail that regulators can examine.When notifying a claimant about a denial, the company must clearly identify the qualified human professional who made the decision. The insurer must also explicitly state that an algorithm or AI system did not serve as the sole basis for the denial.For insurers that use automated systems in their claims process, the bill requires them to explain in their claims-handling manuals how those tools work and how the company ensures compliance with the new requirements.The Office of Insurance Regulation will have authority to examine carriers and investigate compliance with the rules. The Financial Services Commission can adopt additional rules to implement the statute.From a practical standpoint, carriers that have automated significant portions of their claims operations will need to adjust their workflows to ensure that human professionals conduct independent analysis before any claim denial is finalized.The bill has not yet been enacted, but its introduction indicates that the conversation about automation in insurance claims is shifting from operational efficiency to accountability and human oversight.Related StoriesFlorida ruling allows Citizens arbitration system to move aheadState Farm cuts Florida auto rates
2025-12-09 17:57:50
GEICO alleges $4 million no-fault pharmacy fraud scheme in Queens
2025-12-09 17:57:48
Wisconsin bill proposes long-term care guaranty fund
2025-12-09 17:57:46
Manulife Canada CEO warns culture, not tech, is holding insurers back
2025-12-09 17:57:44
Crossfire in insurtech: Comulate strikes back at Applied System’s trade secrets suit
2025-12-09 17:57:41
LPGA, FM ink multi-year deal to revamp golf tour broadcasts
2025-12-09 17:57:39
Major insurers seek approval to limit liability for AI-related claims - report
2025-12-09 17:57:37
Cowbell rolls out self-service cyber resiliency tools for SME policyholders
2025-12-09 17:57:35
Travelers Lloyds challenges insured's improper appraisal tactics in $354k dispute
2025-12-09 17:57:33
Lloyd's of London under scrutiny as governance issues highlight market risks
2025-12-09 17:57:31
"Now is the time": How brokers can capture soft-market savings for CRE clients
2025-12-09 17:57:28