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AM Best Downgrades State Farm General Ratings
Roughly a week after State Farm announced that it would nonrenew tens of thousands of homeowners and commercial apartment policies in California, AM Best has downgraded the company that offered those ...
That Insurance Talent Crisis? It’s a Global Knowledge Opportunity
Over the next 15 years, 50 percent of the current insurance workforce will retire. It's a jarring number. This leaves more than 400,000 open positions unfilled, according to the U.S. Chamber of ...
State Farm Underwriting Loss Climbs to $14B
When State Farm reported a $13 billion underwriting loss for 2022, it was the largest in the auto insurance giant's history. A year later, and another record. The underwriting loss figure climbed to ...
Progressive Gains as Drivers Shop Around for Auto Insurance—Again
Although it may have seemed like drivers had thrown in the towel on trying to find cheaper auto insurance prices late last year, a new study of consumer behavior finds they're back to shopping ...
GEICO’s ‘Eye-Popping’ 2023 Insurance Profits, Falling Employee Counts
Even though Berkshire Hathaway's latest annual report featured Warren Buffett's forecast that the days of "eye-popping performance" for the giant conglomerate are over, readers focused on ...
Going, Going, Gone: ‘Disruption’ to Shrink Traditional Premiums for Auto
Before the end of the current decade, the personal auto industry is likely to see a peak—and then a subsequent lasting decline—in premiums for conventional auto coverage, consultants from ...
USAA to Lay Off 220 Employees
USAA is laying off 220 employees in an effort to reprioritize positions amid changing business needs, the San Antonio-based insurer announced this week. This is the latest round of layoffs at USAA, ...
What Industry Executives Are Saying About Loss Reserves, Social Inflation
At carriers and reinsurers that announced reserve loss charges taken during fourth-quarter 2023, and even at some that did not, executives discussed the "problematic accident years" and lines of ...
U.S. P/C Industry Underwriting Loss Reaches 10-Year High: AM Best
AM Best published its annual estimate of the U.S. property/casualty insurance industry's financial results yesterday, reporting that $38 billion of underwriting losses for 2023 was a 10-year high for ...
CEO Viewpoint: Predict and Prevent Just Makes Economic Sense
Last year, U.S. P/C insurers incurred a $21.2 billion net underwriting loss, only slightly improved from a $24.9 billion underwriting loss recorded in 2022. Roughly $65 ...
Worst Is Over: Most of Casualty Reserve Hole May Be Filled, Analyst Says
Predictions that the property/casualty insurance industry is in the midst of repeating the type of loss reserving cycle that accompanied the hard market of the beginning year of this century may be ...
Are Talent Leaders, Workforces Prepared to Wade Into AI Tidal Wave?
In an August interview with Bloomberg, Microsoft CEO Satya Nadella referenced a 1995 internal memo from the company's then-CEO Bill Gates titled "The Internet Tidal ...
P/C Insurance Execs, Underwriters Out of Sync on Advanced Tech
The traditional ways in which insurers underwrite risks are inadequate to accurately assess and price evolving risks associated with natural catastrophes and technological innovation, according to ...
Twice as Many Personal Lines Insurers Downgraded by AM Best in 2023
AM Best delivered 39 downward credit rating actions to U.S. personal lines insurers in 2023, more than twice the number registered for 2022, the rating agency reported in it official tally for the ...
How Do Insurers Define Systemic Cyber Risk?
Systemic cyber risk is being discussed as a growing concern for insurers as technology advances and interconnectivity increases, but how is this risk defined? That may be ...
Florida Gets 8 New P/C Carriers After Insurance Market Reforms
Following legislative reforms designed to promote market stability, eight property and casualty insurers were approved to enter Florida's insurance market, according to Florida's Office of Insurance ...
Uncertainty Keeps Prices Up; No Prior-Year Loss Development: Travelers
With its personal lines business benefiting from the impact of rate increases earning into the book, and the commercial lines insurance premium changes staying in double-digits, Travelers reported ...
Ready or Not, 80% of P/C Insurers Aim to Use AI for Biz Decisions This Year
Two-thirds of property/casualty insurers plan to start using AI in operational decisions this year, according to a survey, which also reveals that nearly all insurers already using AI have been ...
E&S Property In Focus: Competition Up, Price Momentum Waning
During separate earnings conference calls this week, executives of two property/casualty specialty writers—W.R. Berkley Corp. and RLI Corp.—signaled a changing E&S property insurance market. ...
Viewpoint: You’re at a Competitive Disadvantage If You’re Not Innovating
"Innovative" is not the word I'd use to describe the personal lines insurance space. Industry veterans even affectionately refer to insurance carriers as "slow first ...
Underwriters’ Dilemma: Is AI a Cyber or Tech E&O Risk?
When it comes to artificial intelligence, more questions than answers keep underwriters from venturing into the space and lead to a lack of clarity, according to ...
Travelers: Distracted Driving Incidents Continue to Rise
Common distractions that had declined have rebounded in recent years, according to the 2024 Travelers Risk Index, with some even surpassing pre-pandemic figures. Crashes and near misses related to ...
Millennials, Gen X Push Ahead of Gen Z in Homeownership in 2023
Home insurers take note: homeownership by millennials and Gen X grew in 2023, while Gen Z lagged, according to a new report by Redfin, an online real estate brokerage firm. Even so, most Gen Zers are ...
AI-Powered Insurance Product Development Is Going to Take Some Powering Through
No doubt, AI is a hot topic in the insurance world these days. It brings so many possibilities to make us more effective and efficient.
Time-Tested Loss Reserving Methods Challenged: AM Best
Reflecting on one of the trends that surfaced as property/casualty insurers announced 2023 financial results recently, AM Best expects reserve strengthening for accident years 2015-2019 to continue, ...
Other Major U.S. Bridge Collapses Caused by Ships and Barges
A container ship struck a major bridge in Baltimore early Tuesday [March 26], causing it to plunge into the river below. From 1960 to 2015, there were 35 major bridge collapses worldwide due to ship ...
Allstate’s Safe Driving App Helps Reduce Chance of Collision by 25%
Newly released analysis indicates Allstate customers who chose to opt into their telematics driver safety app, Drivewise, were found to be 25 percent less likely to be involved in a serious ...
FTC Issues Worker Non-Compete Ban as Chamber Lawsuit Looms
The U.S. Federal Trade Commission voted Tuesday to adopt a near-total ban on non-compete provisions that prohibit workers from switching jobs within an industry, a rule ...
Chief Risk Officers Take on Gen AI
When Generative AI burst onto the scene at the end of 2022, users gushed about the automatic content creation, greater productivity, and some funny or disturbing ...
U.S. E&S Sector Is Booming…But Is it Too Much Business to Handle?
The excess and surplus lines and specialty insurance market is booming and looks set to continue its upward trajectory. The question is whether the sector currently has the resources to take ...
Do Your ERM Practices Need Updating?
Immediacy or necessity has a way of sneaking up on us and getting our attention.
This principle is true across the board.
During a recent webinar, an insurance company representative imagined the thought process of potential plaintiffs who might consider calling a lawyer. The studies frequently touted as proof of concept for a shortened workCould U.S. Workers and Companies Benefit From a 32-Hour Workweek?week are riddled with statistical ... In this edition of Risk Alerts, Carrier Management highlights cryoseisms, also known as frost quakes; AI-assisted phishing attacks using large language models and voice ... You probably know them well: the GEICO Gecko, Flo from Progressive, the Liberty Mutual Emu, Allstate's Mayhem, Jake from State Farm. In a nearly $800 billion dollar ... A century-old insurer is evolving to help people manage the risks of everyday life, recover from the unexpected and realize their dreams in an increasingly hyperconnected ... An industry consortium or other form of coopetition may be the best way for carriers to jump into the fast-moving world of AI, a tech entrepreneur who has held executive ... In an industry where the pace of regulation is often described with references to snails and turtles, the NAIC's adoption of a model bulletin on carriers' use of ... At most insurance companies, especially the largest and oldest, data is extremely disorganized. Many carriers have five or more policy admin systems due to acquisitions. ... ***
Re Buyers’ Market Prevails So Far; Reinsurers Seeking Growth
In separate reports this week, brokers Aon and Gallagher Re described a buyers' reinsurance market for April 1, 2024 property and specialty renewals as reinsurer profit margins benefited from last ...
Why Do I Need a Lawyer? I Was Just Out for a Walk
Don’t Believe the Hype About Shorter Workweek Benefits: Expert
Possibility of a Billion-Dollar Systemic Cyber Event ‘Is Real’
A systemic event and the threat it could pose to insurers' portfolios is not the million-dollar question but perhaps the billion-dollar question, according to Norman Niami, immediate past chairperson ...
How Apprenticeship Programs May Be the Best Solution to Today’s Talent Crisis
Four-year degree required. It's been a standard part of job descriptions in the insurance industry for the better part of the past two decades. Now, it's time for an overhaul. The college degree ...
6 Emerging Risks to Watch: Frost Quakes, AI-Assisted Hackers, Flood Magnets
Weathering the Reinsurance Reset in the Midwest
In his more than quarter-century career as a reinsurance broker representing the mutual insurance market, the January 1, 2023, property reinsurance renewals stand out in Josh Knapp's memory as a day ...
Insurers’ Advertising Spending in Reverse, But for How Long?
State Farm Update: More ‘Difficult but Necessary’ Decisions in California
State Farm wasn't quite done making tough decisions about writing business in California when it announced that it wouldn't accept applications for new homeowners policies in the state in May of last ...
Why Insurers Should Develop Strategies for Estimating PFAS Loss Reserves
Perfluoroalkyl and polyfluoroalkyl substances (PFAS) are everywhere in the news lately. PFAS refers to a class of chemicals renowned for resisting heat, water and stains—substances that are found ...
The State Farm Vision: Ecosystem Capabilities for the Insurer of the Future
Stick to Purpose: Why Carriers Need to Cooperate on AI
Brazen $30M Los Angeles Cash Heist Explained
A brazen Los Angeles cash heist on Easter weekend in which thieves cracked a safe and got away with as much as $30 million is believed to be one of the largest such heists in U.S. history. The heist ...
Regulators Run Alongside Speeding AI Train: What the NAIC Model Bulletin Means for Insurers
Quicker Pitch Clock Blamed After Series of MLB Pitcher Elbow Injuries
The head of the baseball players' association thinks a shorter pitch clock has contributed to a series of pitcher injuries. "Despite unanimous player opposition and significant concerns regarding ...
Viewpoint: Risks for D&O Insurers Exploring the New Frontier of Gen AI
Is the world being overtaken by robots? While the answer to that question is clearly "no" — or at least, "not yet" — it seems that the focus of nearly every industry and business media outlet is ...
The Insurance Data Paradox: Structure Creates Flexibility
Executives on the Move at AIG, White Mountains, Vermont Mutual
During the month of April, several insurance groups announced moves of some of their highest-ranking leaders.
Mitchell: EV Collision Claims Up 40% in 2023
The frequency of claims submitted for repairable electric vehicles (EVs) rose to its highest level in 2023, ending the year at 1.97 percent in the U.S. and 2.86 percent in Canada, according to the ...