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Forget quiet quitting - quiet cracking is the new hidden crisis at work

By Sarah Davis

54% of workers say that they frequently experience some level of quiet cracking

Workers Comp

By Emily Douglas

Nov 26, 2025Share

This article was created in partnership with AmTrust Financial.

Move aside quiet quitting, there’s a new workplace trend that’s stirring disengagement and encouraging poor morale in global organizations - quiet cracking.

Quiet cracking reflects a persistent feeling of workplace unhappiness that can lead to disengagement, declining performance and an increased desire to quit. And, according to a recent report from TalentLMS, one in five employees say they frequently or constantly feel this way at work. Worryingly, 54% of workers say that they frequently experience some level of quiet cracking at work.

In a recent interview with Insurance Business, Melissa Burke (pictured), vice president, head of client services at AmTrust Financial, revealed that in addition to concerns around job security, which aligns with the growing quiet cracking trend, employees are also experiencing a range of stressors that contribute to a challenging work environment.

“Common triggers include overwhelming workloads, pressure to meet tight deadlines and ambitious performance goals, dissatisfaction with compensation, conflicts with colleagues and managers, and struggles to maintain a healthy work/life balance,” she told IB.

“It’s important for employers to recognize that stress and mental health challenges affect employees holistically. For example, elevated or persistent stress is linked to physical comorbidities such as high blood pressure, heart disease and even a weakened immune system. Chronic stress can also cause musculoskeletal disorders, as muscle tension is a common reaction to psychological stress. In addition, stress can negatively impact the respiratory, gastrointestinal and nervous systems - compounding both mental and physical health burdens.”

‘This makes the role of the managers even more critical’

These interconnected health effects can increase the likelihood of workers’ compensation claims, as stress-related conditions can contribute to injuries, exacerbate pre-existing conditions, or prolong recovery times. And, with employee mental wellbeing now known to be directly linked to productivity, safety and risk exposure, having those one-on-one check ins can be a way for leaders to identify and help people who are struggling before they end up leaving the company for good.

As Burke told IB, the concept of quiet cracking is particularly concerning because its ‘quiet’ nature signals an employee’s reluctance to disclose stress, burnout, or mental health issues for fear it could impact their employment status.

“This makes the role of the managers even more critical,” she added. “Business owners and leadership should be trained to recognize early behavioral cues and to create safe channels for employees to share their concerns before they escalate. Routine, empathetic manager check-ins are practical and proactive tools for providing support and reducing organizational risk.

“When employees feel empowered to discuss stressors openly, the workplace becomes a healthier and more transparent environment overall. Regular one-on-one conversations signal care, build trust and offer a forum to discuss workload pressures, challenges, and overall well-being.

“These check-ins also help managers observe early indicators of work-induced stress, such as frequent absenteeism, disengagement or withdrawal, irritability, or sudden declines in performance. Identifying these warning signs can allow managers to connect employees with supportive resources and company-sponsored wellness programs and services.”

Early intervention here can help reduce the likelihood that unresolved mental-health challenges will escalate into safety incidents, physical strain, or stress-induced injuries - all of which can contribute to costly workers’ comp claims.

16% of US employees believe mental health related stigma has increased

But it’s not enough to pay lip service to these check ins – organizations and leaders have to go the extra mile to show true, authentic commitment to really helping their people. For many people, however, there’s a toxic cultural stigma around openly discussing one’s own mental health. Research from MentalHealth Journal found that 16% of US employees believe mental health related stigma has increased over the past year, with a report from the American Psychiatric Association adding that one in three workers are worried about work-related consequences if they seek mental health care. The data paints a worrying picture - making it even more important that employers create a psychologically safe environment where employees feel supported and comfortable raising concerns before issues escalate.

“Creating a supportive environment and culture for employees’ mental well-being starts at the top,” added Burke. “Employers and business leaders should recognize that promoting mental health in the workplace is an ongoing responsibility – not something only activated when problems surface. Ensuring appropriate mental health support services and resources are in place and that employees know how to access them, builds resilience across the organization when challenges arise.

“Key best practices for reducing stigma include providing ongoing education about mental health issues and normalizing conversations around stress, anxiety, and burnout. When leaders and managers model openness and express genuine support, employees are more likely to feel safe sharing their own struggles. Employers can offer training tools such as online courses, workshops, or periodic in-person seminars on mental health to build awareness and equip staff with practical guidance.”

EAPs, referral services, mental health initiatives

For organizations looking to make a real difference to their people in the new year, leadership teams should be looking at boosting the resources they have on offer. As Burke told IB, businesses can leverage EAP Employee Assistance Programs (EAPs), which typically provide voluntary, work-based benefits such as confidential mental-health counseling and referral services, and other behavioral-health offerings to employees and their families.

“Employers can also leverage external resources such as the Center for Workplace Mental Health, which provides evidence-based tools, frameworks, and best practices for planning and strengthening workplace mental health initiatives,” she added. “These programs and resources help organizations to build supportive, preventative wellness strategies that address employee needs before issues escalate.”

As we head into the new year, one thing is clear - employers need to start investing in the mental health and well-being of their teams in a preventative rather than a curative manner. For Burke, she believes this begins with ensuring risk management and HR leaders are fully trained to address the root causes of workplace stress and help sustain a healthy, resilient workforce.

“Ensure employees are fully aware of the resources available to them,” she added. “Such as their employee assistance program (EAPs), telehealth behavioral services, and other employer-provided mental-health resources. Second, tailor offerings to the unique needs of specific workforce segments including aging employees, remote staff, and workers who are in known high-stress environments, such as the restaurant and hospitality industry.”

Make orientation, ongoing job training and role development a priority

Furthermore, as Burke told IB, it’s also been found that when employees lack proper training or clarity around their role, it often leads to quiet cracking. To address this, leaders should make orientation, ongoing job training and role development a priority. These efforts not only reinforce confidence and job security but also reduce risks associated with workplace injuries. In short, investing in continuous learning benefits both employee well-being and organizational safety.

“Lastly, leaders should also leverage resources embedded within Workers’ Compensation benefits and coverage, including nurse triage programs that provide early engagement with employees who may be struggling with mental health challenges,” concluded Burke. “These programs can help assess needs quickly and direct employees to appropriate behavioral-health care, reducing the likelihood of escalation and supporting faster recovery.”

Lloyd's of London under scrutiny as governance issues highlight market risks

Controversy surrounding former CEO John Neal continues to have a ripple effect on the marketInsurance NewsBy Josh RecamaraNov 30, 2025ShareLloyd's of London is facing renewed scrutiny after allegations of executive misconduct have emerged, raising questions about governance, culture and operational oversight in a market responsible for insuring risks in over 200 countries.The spotlight has fallen amid the controversy surrounding John Neal, former CEO, and the promotion of Rebekah Clement to director of corporate affairs.While an earlier internal review cleared the appointments, Lloyd’s leadership commissioned a fresh investigation after concerns persisted that the previous inquiry did not fully address the issues, according toThe Wall Street Journal. The investigation has already affected Neal’s career -- American International Group withdrew a planned executive appointment, paying him $2.7 million under a mutual agreement in lieu of the role.Former Lloyd’s CEO Inga Beale once described the market as historically protective and male-dominated, with a culture that tolerated misconduct and made it difficult for women to advance. Efforts to introduce reform, such as banning daytime drinking and updating dress codes, faced resistance. These cultural issues have implications for underwriting and market performance, as inclusivity and strong governance are increasingly linked to reputational and operational risk in insurance.The Lloyd’s market connects thousands of buyers and sellers of risk protection daily, from syndicates underwriting large-scale property and casualty exposures to bespoke policies for specialized assets such as aircraft, satellites, or celebrity body parts. Enduring cultural and governance weaknesses can undermine trust among clients and brokers, disrupt market operations, and complicate regulatory compliance.Under Neal, reforms included updated codes of conduct, fines for managers who overlooked misconduct, and diversity initiatives.Workforce composition has shifted, with over 40% women and 14% ethnically diverse staff, according to the report. Yet the current investigation highlights that operational and reputational risks linked to culture remain relevant, particularly as Lloyd’s engages with institutional and multinational clients globally.Sheila Cameron, CEO of the Lloyd’s Market Association, called for transparency and public disclosure of the probe’s findings to ensure accountability and maintain confidence among insurers, brokers, and policyholders.Lloyd’s long-standing reputation for product innovation and market leadership relies on its ability to uphold governance standards, manage reputational risk, and maintain trust in its underwriting operations.The ongoing probe serves as a reminder that even historic market leaders must align cultural and governance practices with the operational expectations of modern insurance markets.Related StoriesAIG's incoming president John Neal withdrawsLloyd's leader John Neal on putting culture at the heart of insurance

Insurance News

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

Insurance News

Texas appeals court upholds TWIA rule on assessment-year market share

Insurers face TWIA bills based on the year they're issued, not Hurricane Harvey (2017) market shareLegal InsightsBy Matthew SellersNov 25, 2025ShareOn November 21, 2025, the Fifteenth Court of Appeals issued a memorandum opinion confirming that the Texas Department of Insurance may require the Texas Windstorm Insurance Association to calculate each member’s assessment share using market‑share data for the year the assessment is issued, not the year a storm occurred. The court rejected ASI Lloyds Insurance Company’s challenge to 28 Tex. Admin. Code § 5.4162(b) and left intact the method TWIA used for a contested third Class 1 assessment tied to Hurricane Harvey (2017).Here’s what happened. Harvey’s insured losses resulted in excess losses for TWIA, and the association made three Class 1 member assessments between 2018 and 2020. ASI contested only the third assessment. For that bill, TWIA used ASI’s 2019 percentage of participation for the initial calculation and stated in the notice that the amount would be adjusted once ASI’s 2020 percentage was finalized. ASI argued TWIA should have used its 2017 participation share – the catastrophe year – and said using 2017 would have reduced its obligation by roughly $438,300. The court found the department’s rule valid and concluded there is no statute that requires TWIA to use catastrophe‑year market shares.Are you an insurance innovator? Tell us — we want to hear your storyThe court’s reasoning focused on the statutory structure. It emphasized that the Insurance Code authorizes the commissioner to adopt a plan of operation for TWIA and to set how member participation is determined annually. The opinion cites Section 2210.052, which directs that participation be determined annually in the manner provided by the plan of operation, and Section 2210.0725(b), which ties Class 1 assessment proportions to that method. The judges explained that defining a “catastrophe year” – the year losses occur, regardless of when they are paid – does not prescribe which year’s market‑share data the plan must use to allocate assessments.For insurance finance and risk teams, the ruling confirms an important timing reality. Market share can change in the years after a catastrophe. When TWIA bills based on assessment‑year data, a carrier that has expanded its Texas property book can face a higher assessment; one that has contracted may pay less. That timing gap means the ultimate cost of a catastrophe can remain uncertain until participation percentages are finalized, sometimes years after the loss.Practical actions are straightforward. Treat TWIA exposure as a multi‑year liability for accrual and capital planning. Improve controls around net direct premium reporting for Texas filings, because participation percentages derive from those figures. Stress‑test liquidity for scenarios where market share shifts unfavorably between loss year and assessment year, and review contingent‑funding options to address potential assessment volatility driven by statutory timing. Note: TWIA may use catastrophe‑year figures only if the assessment is made during that year.The decision leaves TWIA’s funding framework unchanged and confirms the department’s discretion to rely on assessment‑year data in the plan of operation. For carriers writing Texas property business, that is a planning reality to incorporate into pricing, capital and reporting.Related StoriesAmericans are moving out of flood-prone neighborhoodsStorms, wildfires and withdrawals: How E&S is filling the Texas insurance gap

Insurance News

Surge in distressed companies pushing more risks into the wholesale FL market

Insurers are ramping up wholesale underwriting capabilities to meet brokers’ demandWholesaleBy Gia SnapeDec 04, 2025ShareThe financial lines market is undergoing a pronounced shift as a growing wave of distressed US companies drive more complex risks into the wholesale channel, prompting carriers to stand up dedicated wholesale underwriting units.According to Vincent Cisternino (pictured), VP of wholesale financial lines at Westfield Specialty, this evolution is reshaping competition, service expectations, and the underwriting playbook heading into the new year. As distress increases, more insureds require the speed, flexibility, and specialty underwriting expertise that wholesale markets are designed to deliver.“On the wholesale side, you often get more complex deals that require a solution quickly,” Cisternino explained. “Brokers recognize this need for different skill sets from underwriters in wholesale versus retail, driving the demand for dedicated wholesale financial lines underwriting."Macro trends reshape corporate balance sheetsThis shift is rooted in a macroeconomic backdrop marked by rising bankruptcies, tightening liquidity, and elevated borrowing costs.US bankruptcy petitions reached 504,112 in 2024, an increase of more than 70,000 year over year, according to the Administrative Office of the US Courts.The acceleration has been particularly acute among corporates: S&P Global Market Intelligence recorded 694 US corporate bankruptcies in 2024, followed by 655 filings through October 2025, putting this year on track for the highest total since 2010.At the same time, persistently high interest rates have stifled cash flow for firms. After more than a decade of near-zero interest rates, the Federal Reserve’s rapid tightening cycle lifted the federal funds rate to 5.25%-5.5% by mid-2023, the highest in over 20 years, and kept rates elevated into 2024.For financial lines carriers, those macro trends don’t necessarily change the nature of claims, but they do change who is showing up at their door.“Most of the distress we’re seeing comes down to debt,” Cisternino noted. “Either companies took on too much when money was cheap, or their variable-rate debt has become too expensive.”As distress intensifies, the need for specialized underwriting, bespoke coverage structures, and rapid turnaround has pushed more risks into the wholesale segment, he said.“Wholesale brokers, many of whom specialize in distressed risks, know the playbook,” Cisternino said. “They understand restructuring scenarios and how to ensure the directors and officers have the protection they need.”Wholesale FL underwriting rises to meet the momentThe influx of distressed risks has simultaneously increased competition and reshaped how insurers operate in the wholesale space. Many carriers, including Westfield Specialty, have responded by building standalone wholesale financial lines units equipped to handle complex, fast-moving submissions.“There’s a greater sense of urgency,” Cisternino said. “We want to help the broker win the deal, assuming the terms make sense for everyone. That means responding quickly and eliminating bottlenecks wherever possible.”At Westfield Specialty, that has meant redesigning clearance processes, enhancing internal coordination, and staffing the wholesale unit with underwriters explicitly skilled in handling intricate and distressed financial profiles.“We were intentional about bringing on people who could dig into the details of challenging risks,” he noted. “Instead of saying, ‘this class isn’t for us,’ we ask how we can write it and whether the broker would support that approach.”The shift is also driving a more flexible underwriting mindset. Wholesale units are increasingly adopting E&S-inspired practices, pushing beyond rigid class-based underwriting toward more customized solutions, according to Cisternino.Product innovation to match broader wholesale expectationsAs wholesale brokers absorb a wider range of financial and professional lines placements, the Westfield Specialty VP sees growing demand for multi-line product solutions.“Wholesale brokers are often placing everything from EPLI to property manager E&O to publicly traded D&O,” Cisternino said. “We’re working on products designed to span multiple lines so brokers don’t have to get six different quotes. That’s where innovation is headed.”Amid this transition, he emphasized that durable broker-underwriter relationships have become even more important.“Once we write a deal, we view it as a long-term relationship, not a one-and-done,” he said. “Claims come in, issues arise, but when both sides work through them collaboratively, it builds trust.”Related StoriesD&O claims rebound as boards face converging geopolitical, cyber and AI risks – Allianz"Collectively we are moving past the height of the hard market" – Westfield Specialty president

Insurance News

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

Insurance News

GEICO alleges $4 million no-fault pharmacy fraud scheme in Queens

It outlines alleged high-priced scheme exploiting New York no-fault systemClaimsBy Tez RomeroDec 01, 2025ShareGEICO is accusing a Queens pharmacy of a multimillion-dollar no-fault drug billing scheme built on high-priced pain medications and collusive referrals.In a filing dated November 26, 2025, in the United States District Court for the Eastern District of New York, Government Employees Insurance Company, GEICO Indemnity Company, GEICO General Insurance Company and GEICO Casualty Company set out detailed allegations against United Pharmacy NYC Inc., its owner, Irina Alishayeva, two nurse practitioners, and a series of unnamed “John Doe” defendants.At the heart of the case is New York’s no-fault auto insurance system. GEICO alleges the defendants exploited individuals involved in motor vehicle accidents who were eligible for Personal Injury Protection benefits by systematically dispensing certain prescription drugs without regard to genuine patient care.According to the filing, the defendants submitted more than $4 million in pharmaceutical claims through United Pharmacy under GEICO policies. The insurer alleges that the pharmacy, working with prescribing providers and clinic controllers, overwhelmingly focused on a limited group of products: Lidocaine 5% Ointment, Diclofenac Sodium 2% Solution, Diclofenac Sodium Gel 3%, and Naproxen-Esomeprazole tablets.Those drugs, GEICO says, accounted for approximately 84 percent of the billing submitted through United Pharmacy to the company. The filing describes charges typically ranging from $1,887.13 to $2,358.92 per prescription of Diclofenac Sodium Gel 3%; $2,686.36 or $2,636.38 for Diclofenac Sodium 2% Solution; $1,218.97 to $1,904.65 for Lidocaine 5% Ointment; and $2,680.78 for Naproxen-Esomeprazole.The insurer alleges these pharmaceuticals were prescribed and dispensed pursuant to predetermined fraudulent protocols and unlawful, collusive referral arrangements, rather than individualized medical judgment. It also alleges the defendants intentionally targeted these high-priced products, acquired at low cost, in place of other effective but much less costly prescription and non-prescription drug products, including over-the-counter items that are not covered expenses under the no-fault laws.GEICO further describes what it characterizes as unlawful, collusive referral arrangements. The filing alleges that Alishayeva and United Pharmacy, together with unknown associates, entered into financial arrangements with nurse practitioners Gaetan Jean-Marie and Shai Bikel and with clinic controllers at multidisciplinary no-fault clinics. According to the filing, those arrangements led to large volumes of prescriptions for the same set of drugs being directed to United Pharmacy, including, in some instances, prescriptions that were illegal, invalid or unauthorized and issued using another provider’s credentials.For insurance professionals, the case also draws attention to New York’s pharmacy fee schedule. Under 12 N.Y.C.R.R. §§ 440.5(a) and (d), reimbursement is based on the Average Wholesale Price associated with a drug’s National Drug Code on the day of dispensing, minus a specified percentage, plus a single dispensing fee. GEICO alleges the defendants intentionally selected a specific set of pharmaceutical products with extremely expensive average wholesale prices that could be obtained at a fraction of that cost, enabling what the filing describes as “exorbitant charges” to insurers.GEICO states it has already paid approximately $2.3 million on United Pharmacy’s bills and that approximately $1.4 million in additional claims for the same types of products remain pending. The insurer is asking the court to declare that United Pharmacy has no right to payment for any pending bills for these pharmaceuticals, to order repayment of the amounts already paid under claims including common law fraud and unjust enrichment, and to award treble damages, costs and attorneys’ fees under the federal Racketeer Influenced and Corrupt Organizations Act.These remain allegations drawn from GEICO’s filing. The court has not made findings on the facts, and no final determination has been issued on GEICO’s claims or on the defendants’ liability.Related StoriesFarmers Insurance accuses DME firms of $274k no-fault fraud schemeGEICO sues Brooklyn pharmacy over $3.5 million No-Fault fraud claims

Insurance News

Manulife Canada CEO warns culture, not tech, is holding insurers back

Insurers fear tech disruption, but Naveed Irshad says the real threat is staff 'resistant' to AITransformationBy Branislav UrosevicDec 03, 2025ShareThe insurance industry’s biggest AI problem isn’t algorithms – it’s the people who refuse to use them, according to Manulife Canada’s top executive.At a recent industry event, Naveed Irshad (pictured), president and CEO of Manulife Canada, said that while “some… 75% of [the company’s] employees are using some of these tools regularly,” a significant minority is still not following suit. He described roughly a quarter of staff as “resistant” and “complacent.”“I do worry about those individuals,” he said.For Irshad, that reluctance is more dangerous than any external disruptor. “The biggest risk, from my perspective, is not external. It’s internal. It’s our own resistance to change,” he said.Culture vs. technologyThe insurance industry likes to talk about disruption and emerging technology, but Manulife Canada’s top executive argues the real danger is closer to home. In his view, insurers risk being left behind not because of Silicon Valley, but because they are too slow to change.Irshad described a sector that has spent years discussing transformation while clinging to aging systems, legacy processes and distribution models designed for a different era. Customer expectations, he warned, are not standing still.He noted that across demographics and markets, people now expect personalized, seamless, proactive experiences from every service provider – and insurance is no exception. Technologies like AI may help deliver those expectations, but, he argued, the real test isn’t the tech at all – it’s whether leaders are willing to change how they run their organizations.Read more: Manulife and Sun Life expand health and wellness offerings through new prevention programs“The question isn’t whether our industry will be disrupted,” he said. “It’s how we will lead through that disruption with clarity, speed and purpose.”Irshad insists that, at Manulife, technology is secondary to what he calls a “change ready culture.” The company’s focus, he said, has been on building a workforce that is prepared to adopt new tools and “lead through change,” rather than simply have AI imposed from above.Wrestling with legacy systemsThat rhetoric is ambitious, but Irshad also acknowledged how far the industry has to go. Behind the scenes, Manulife still grapples with the same legacy baggage as its peers – including systems old enough that the company is “still servicing policies [it] sold pre World War Two.”Extracting, cleaning and organizing that data before AI can be deployed has required heavy upfront investment in data lakes and quality controls, he said.Read more: Manulife, Mahindra strike US$400M joint venture to push into India's booming insurance marketNone of this is easy, but Irshad argues the alternative is worse. In his telling, culture is the only way to keep pace with a technology cycle that has already left parts of financial services “stuck in the mud.”“In a world where technology evolves rapidly, that mindset is our competitive edge,” he said.‘AI for all’ – but a quarter lag behindTo that end, Manulife has pushed AI access far more widely than many incumbents. Irshad said the company’s internal approach is “AI for all,” with every employee able to use certain tools and most already doing so. He credits leadership buy-in and a change‑ready mindset for enabling Manulife to become the first insurer in Canada to use AI in underwriting and to scale other use cases globally.According to Irshad, “100% of [the company’s] workforce has access to AI tools, and 75% of them use these tools regularly.” Tools range from an internal chat assistant to tools for developers and intelligent document processing systems that extract and validate data from receipts and claims.He even uses AI personally to cope with the sheer volume of information. Rather than wading through a clogged inbox after a vacation, he lets an AI copilot summarize messages and flag the ones that need urgent responses. Another internal system summarizes customer calls from the contact centre by issue and theme so senior leaders can see what is actually driving complaints and queries, he told the audience.Read more: Manulife Q3 profit holds steady as core earnings climb on record Asia and Canada results“These are just small examples, but meaningful ones, of how AI is quietly boosting productivity day to day,” he said.For employees, he argued, the story is similar: when people actually embrace the tools, “productivity [goes] way up.” But for the 25% he describes as resistant and complacent, the risk is being left behind as the organization moves ahead. Manulife can provide access and training, he said, but “we’re putting [it] in employees’ hands. They have the choice… [to] get on the bus or not.”“AI is an enabler. It’s not a silver bullet,” he said. “The real transformation comes from how we lead with clarity, with purpose and with a deep investment in our people.”

Insurance News

AIG risk chief and insurance industry veteran Tom Bolt dies

He spent more than four decades at some of the industry's most prominent carriersInsurance NewsBy Kenneth AraulloNov 25, 2025ShareTom Bolt, a veteran insurance executive who held senior leadership roles at AIG, Berkshire Hathaway Specialty Insurance and Lloyd's of London, has died, as confirmed by AIG in a LinkedIn post.Bolt spent more than four decades in the insurance industry. He joined AIG in January 2018 as global chief underwriting officer of general insurance before later serving as executive vice president and chief risk officer, a position he held until his retirement in 2024.During his tenure at AIG's General Insurance division, Bolt worked to establish underwriting standards across the company. His role focused on developing underwriting practices during a period of operational restructuring for AIG.Are you an insurance innovator? Tell us — we want to hear your storyPrior to joining AIG, Bolt held the position of president and chief executive officer of Berkshire Hathaway Specialty Insurance's operations in the United Kingdom and Southern Europe. He also served as a board member of Berkshire Hathaway International Insurance Ltd.Earlier in his career, Bolt worked at Lloyd's of London, where he served as director of performance management. He also held the position of managing director of Marlborough Managing Agency at Lloyd's.Read more:AIG Q3 2025 net income surges as latest deals boost outlookBolt's departure from AIG occurred during a period of significant leadership transitions at the company. Earlier in the year, AIG announced a broader reshaping of its North America commercial insurance leadership, which included the retirement of long-serving executive Don Bailey.AIG's board and executive leadership issued a statement regarding Bolt's career at the company. According to the statement, Bolt's work contributed to establishing what the company described as general insurance's position as an industry leader for underwriting excellence.Survivors include his wife, Patti, and his children and grandchildren.Related StoriesAIG's incoming president John Neal withdrawsAIG Q3 2025 net income surges as latest deals boost outlook

Insurance News

LPGA, FM ink multi-year deal to revamp golf tour broadcasts

Partnership will bring cutting-edge coverage and bigger purses to North American eventsInsurance NewsBy Kenneth AraulloNov 20, 2025ShareThe LPGA and commercial property insurer FM have announced a multi-year partnership to transform the broadcast coverage of the LPGA Tour’s North American events.The agreement will introduce new technology, equipment, and content enhancements, with support from Golf Channel and Trackman, beginning in the 2026 season.FM will become an Official Partner of the LPGA under this arrangement. The insurer has served as the title sponsor of the FM Championship since 2024, with the event’s $4.1 million purse standing as the largest on the LPGA Tour outside of the majors and the tour championship.Are you an insurance innovator? Tell us — we want to hear your story“We are proud to take our partnership with the LPGA to an even higher level by supporting the transformation of the LPGA Tour’s broadcast, athlete and fan experience for the 2026 season and beyond,” said Malcolm Roberts, chairman and CEO of FM.Read more:2025 Travelers Championship sets record nonprofit donationsFM’s presence in professional golf has grown significantly in recent years. Earlier this year, FM entered a multi-year partnership with Rory McIlroy, one of the sport’s most recognized figures. As part of this agreement, McIlroy will host and participate in client engagement events for FM, and the insurer’s logo will appear on his golf bag during select tournaments.The partnership also extends FM’s relationship with Boston Common Golf, a TGL league team co-founded by McIlroy, and is part of FM’s broader strategy to leverage golf’s global reach for brand expansion and client engagement.Insurers and golfingFM’s commitment to the women’s game is also extends to its sponsorship of LPGA golfer Megan Khang. Khang, who wears FM’s logo and participates in company events, has become a key figure in FM’s efforts to support women’s professional golf and community engagement.Meanwhile, the insurance industry’s involvement in golf extends beyond FM. Burns & Wilcox, for example, has previously sponsored PGA Tour golfers Webb Simpson and Jimmy Walker, gaining significant exposure through logo placements during major tournaments.Read more:Apollo Global Management partners with PGA Tour golfer Patrick CantlayInsurers are also active in tournament sponsorship and philanthropy. The 2025 Travelers Championship, sponsored by Travelers, set a record for nonprofit donations, distributing $3 million to more than 180 charities. This underscores the sector’s role in supporting both golf and community initiatives.Additionally, Apollo Global Management, a global asset manager and insurer, last year partnered with PGA Tour golfer Patrick Cantlay. The partnership includes branding opportunities and client engagement events, reflecting a growing trend of insurers aligning with high-profile athletes to expand their presence in sports.Related StoriesFM partners with LPGA star Lottie Woad as brand ambassadorFM doubles resilience credit, expands focus to operational risk

Insurance News

Wisconsin bill proposes long-term care guaranty fund

Assessments on life and disability insurers would back the proposed solvency protection measureLife & HealthBy Insurance BusinessDec 02, 2025ShareA new bill introduced in the Wisconsin Assembly seeks to bolster protections for long-term care (LTC) policyholders through the creation of a dedicated guaranty mechanism.Assembly Bill 699 proposes adding a specific LTC insurance guaranty account to the state's existing insurance security fund.The fund is designed to protect policyholders in the event of insurer liquidations.The proposed account would be financially backed by assessments levied on life and disability insurers operating within the state.Under current Wisconsin law, the security fund is already segmented into separate accounts for life and annuities, health maintenance organizations, and disability insurance.The new legislation mandates that the funding for the specific LTC account be split evenly between life and disability insurance carriers.Assessments would be based on premiums written in the preceding year, with rates calculated according to each carrier's market share.The bill defines a life insurer as an organization deriving more than 50% of its premiums from life and annuity products.Conversely, carriers receiving more than 50% of premiums from disability policies would be categorized under the disability line.To offset the financial burden, the bill extends tax credit provisions to carriers paying into the new LTC account.These credits would equal 20% of the total LTC-related assessment and could be applied to state income taxes, franchise taxes, or license fees.The credits are valid for application for up to five years after the assessment is paid.Notably, the bill specifies that these tax credits would be refundable specifically for disability insurers, though not for other carrier types.State Senator and bill co-sponsor Jamie Wall emphasized the growing necessity of such protections given current demographic shifts. "Solvency of long-term care is important, as more people continue to use these services,” he said.Wall argued that the legislation is a necessary safety net for consumers. "This bill will shore up the system and not leave policyholders in the lurch."The bill was officially introduced and referred to the Assembly Committee on Insurance on November 26.This legislative move comes as Wisconsin lawmakers also consider changes to workers' compensation regulations, including updates to permanent partial disability compensation.The LTC market in the state is currently concentrated among a few major providers.According to Best Wire data for 2024, CNA Insurance Cos. held the majority market share at 56.72%. Other top writers included State Farm Group with 29.95% and American Family Insurance Group with 12.46%.Related StoriesWisconsin lawmakers weigh workers' comp overhaulRising long-term care costs pose global financial challenge – Gallagher Re