Insurance News Digest 10-10-2025

We continue to focus on the federal shutdown and its developing impact on the insurance industry. Don't miss the Focus section at the bottom of the newsletter.

October 10, 2025

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We deliver the latest insights and developments shaping insurance, focused on insights and opportunities for those who serve the insurance industry. Stay informed on how emerging trends like current events, regulatory changes, AI, and innovative products can help you better serve your clients and partners and drive business growth.

Top 10 Articles Of The Week

Acrisure will cut 400 accounting‑role positions beginning in early 2026, attributing the reduction to automation and AI adoption. The move reflects the broker’s effort to stay competitive while balancing tech investment with financial discipline.

AIG is accelerating AI deployment in underwriting and claims operations, leveraging reduced reinsurance costs to protect margins. CEO Peter Zaffino emphasized volatility control and disciplined risk transfer strategy.

Aon’s 2025 Global Risk Survey elevated geopolitical volatility into the top 10 business risks, while revealing that few organizations actively quantify or insure against those exposures.

The article argues that making a brief phone call before issuing a written denial of coverage builds goodwill, avoids surprises, and can reduce the risk of bad faith litigation.

AI is transforming underwriting by automating data intake, risk triage, and document generation. Underwriters must shift to value‑add roles such as advisory, specialization, and growth enablement.

Jury sentiment has shifted so that small and mid-sized businesses now face jury awards comparable to those once reserved for Fortune 500s. This trend underlines how deeply social inflation and litigation culture changes are affecting the liability landscape.

Automakers are embarking on risky design, liability, and regulatory gambits, especially in EVs and autonomy, raising fresh exposure and litigation challenges for insurers. Their evolving product strategies may outpace insurer readiness.

8. Arkansas Insurer, Multiple Others Face Liquidation Moves

The Arkansas Insurance Department has moved to liquidate an insurer and several captive affiliates amid financial stress, signaling ongoing vulnerability in regional carriers.

Reinsurance pricing is moderating after years of escalation, and reinsurers are betting on improved margin potential amid easing loss pressures and disciplined underwriting.

The California Department of Insurance has launched enforcement action against Tesla Insurance, citing repeated failures in claims handling and threatening sanctions or business suspension.

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Focus Of The Week: We continue to focus on the federal shutdown and its developing impact on the insurance industry.

The IRS has furloughed nearly half its workforce in response to the government shutdown, suspending most operations and delaying services that insurers and financial firms depend on.

Proposed cuts to ACA premium subsidies could drive 3.2 million additional lives into employer‑sponsored coverage, raising cost and capacity challenges for employer plans.

During the 2025 shutdown, the NFIP cannot issue new flood policies or process renewals, leaving homeowners to consider private flood solutions.

*See a list of our preferred publications here.