Insurance News Digest 1-2-2026

Happy New Year! We're kicking off 2026 by highlighting the Top 10 Articles of 2025 and a bonus section on the expiration of enhanced ACA subsidies.

January 02, 2026

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Top 10 Articles Of The Year

The U.S. property/casualty insurance industry achieved a combined ratio of 96.5 in 2024, marking its best underwriting performance in over a decade. Personal lines improved by 10 points, driven by gains in homeowners insurance, while commercial lines remained stable.

Ongoing uncertainty surrounding potential U.S. tariffs is causing concerns within the insurance industry. Analysts warn that such tariffs could disrupt supply chains, leading to increased costs for auto repairs and homebuilding materials, thereby affecting insurers' loss ratios.

A Texas Tribune analysis reveals 13 summer camps along the Guadalupe River are partially or fully located in flood-prone areas, some within the 100-year floodplain. Mapping gaps and grandfathering rules allow continued exposure, posing escalating insurance and safety concerns.

A recent survey shows over half of independent insurance agency staff are experiencing burnout due to mounting workloads and rising sales targets. Agencies that adopt tech tools and flexible work policies are seeing reduced employee stress.

Analysis suggests ACA marketplace premiums may surge by 114% next year if Congress fails to renew enhanced subsidies.

U.S. wildfires have nearly doubled compared to the same time in 2024, with over 36,000 fires burning 2 million acres. Alaska leads in active fires while annual wildfire costs average $3.3 billion.

CVS Health announced that its subsidiary, Aetna, will withdraw from all Affordable Care Act (ACA) exchanges in 2026, affecting approximately one million members across 17 states. The decision stems from ongoing underperformance in the ACA market, prompting CVS to refocus on more sustainable health benefit solutions.

The insurtech firm Sapiens is poised for a $2.5 billion acquisition, with the transaction expected to close by late 2025 or early 2026. The deal signals ongoing consolidation in the sector as investors chase scalable tech-driven solutions.

Property insurance premiums rose to record levels in the first half of 2025, driven by climate disasters. Los Angeles saw a ~9% spike, while disaster‑hit states like the Carolinas also experienced steep increases.

With projected health cost increases hitting a 20-year high, more employers (59%) plan transformative benefit changes over the next three years. Strategies include use of AI, tighter vendor oversight, and health plan redesigns.

Focus Of The Week: We highlight the expiration of enhanced ACA subsidies, examining the legislative breakdown, economic impacts, and strategic implications for the insurance ecosystem heading into 2026.

Affordable Care Act (ACA) premium tax credits expired on January 1, 2026, leading to increased premiums and out-of-pocket costs for millions of non-employer-insured Americans. Late 2025 policy talks failed to renew them, raising concerns about coverage losses and election-year impacts.

The U.S. Senate rejected healthcare proposals to continue ACA subsidies through 2026, setting up higher premiums as enhanced aid ends. Without year-end agreement, about 24 million enrollees face rising costs and renewed legislative pressure in 2026.

ACA premium tax credits that expanded affordability and eligibility are expected to end after December 31, 2025, unless Congress intervenes. This change may boost employer-sponsored coverage demand and affect benefits strategies as individual premiums rise sharply.

*See a list of our preferred publications here.