Insurance News Digest 11-6-2024

The election is over. Now back to the big new in insurance...

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.

GEICO reported strong third-quarter results, yet overall underwriting income for its parent company declined, signaling a mixed environment in personal lines insurance.

Allstate is moving to grow its homeowners insurance line by leveraging three distribution channels, aiming to capitalize on current market opportunities.

Agencies are advised to take specific actions to retain customer loyalty and prepare for the anticipated softening in the insurance market.

Berkshire Hathaway saw mixed Q3 results, with reserving and catastrophe losses impacting reinsurance, though Geico provided a positive offset with its performance.

American International Group reported a 28% decrease in general insurance underwriting profit for Q3, primarily due to a challenging claims environment.

Insurers are working to address challenges in developing auto insurance products for the on-demand economy, a segment with growing but unmet needs.

According to TransUnion, large organizations carry significant cyber risks, and expanding cyber insurance to more sectors could address a critical need in corporate risk management.

USAA has estimated combined losses of $1.37 billion from Hurricanes Helene and Milton. These recent storms represent significant impacts on insurers, especially in catastrophe-prone areas.

Hurricane Milton could cost Chubb approximately $300 million in losses across its property and casualty segments, reflecting ongoing weather-related pressures on insurers.

Florida's Hurricane Catastrophe Fund projects it can cover an anticipated $4.6 billion in claims related to Hurricanes Helene and Milton, providing stability to the impacted market.

FEMA's National Flood Insurance Program (NFIP) will soon accept monthly payments, a change aimed at improving affordability and policyholder retention amid rising flood risks.

Preparing for Post-Storm Remediation: Risks and Strategies

Professionals and insurers are advised to be vigilant about mold and asbestos risks in the wake of storms, emphasizing early intervention for mitigation in affected properties.

New reports indicate that Hurricane Milton’s flooding was more extensive than initially expected, affecting about 185,000 buildings and raising concerns for insurers and property owners.

The increasing frequency of extreme weather highlights the need for new risk assessment approaches that help organizations mitigate impacts and sustain business continuity.

Swiss Re will divest its white-label property and casualty division, iptiQ, to Allianz, citing a strategic move to refocus resources on core business priorities.

A new analysis from KBRA supports that Florida's insurance market and Cat Fund will withstand the financial impacts of Hurricanes Helene and Milton, emphasizing overall resilience.

Only a quarter of companies implementing AI are seeing value beyond pilot stages, with insurers facing specific challenges in fully leveraging AI potential.

Despite a 22% ROE in 2023, global reinsurers may not see market softening soon, as factors driving profitability remain in play.

Swiss Re has agreed to sell its white-label iptiQ P&C business to Allianz as part of its strategy to refocus resources on core operations.

Louisiana’s House Bill 672 is reshaping the regulatory landscape for managing general agencies, with new compliance requirements impacting operations.