Insurance News Digest 11-27-2024

Happy Thanksgiving, everyone!

November 27, 2024

This week, the insurance industry saw Swiss Re Institute report increased resilience in a challenging environment, AM Best maintained a positive outlook for global reinsurance, and the NAIC elected new officers for 2025.

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.

A new survey reveals that the majority of P&C insurance decision-makers anticipate that AI will drive the industry's future operations and enhance efficiency.

Advances in digital insurance platforms aim to streamline collaboration between agents and carriers, boosting efficiency and customer satisfaction.

Guidewire CEO highlights the expansion of cloud customers from 4 to 86 in five years, reflecting the industry's increasing shift towards cloud-based insurance platforms.

AI is transforming cyber insurance by enhancing risk assessment and breach response while also creating more sophisticated malware threats insurers must address.

5. VC Interest in InsurTechs Shift to Profitability

Investors in InsurTech are emphasizing sustainable growth and profitability as the industry matures beyond early-stage enthusiasm.

AAA reports that overall driving patterns in the US have returned to pre-pandemic levels, signaling stability in travel behavior following the disruptions caused by Covid-19.

Majesco’s latest report highlights shifting consumer expectations and strategic insights for insurers aiming to stay competitive in a dynamic market.

A new comprehensive auto insurance program, including bobtail and non-trucking liability, is now accessible in select states, targeting underserved commercial sectors.

Glencar, in partnership with BriteCo, introduces a special event liability program in Florida, targeting niche insurance needs for events and gatherings.

While home insurance is expected to stabilize by 2025, unpredictable weather events and regulatory hurdles remain critical factors that could influence market conditions.

Sam Melamed, CEO of NCD, notes a marked slowdown in this year’s ACA sales season, with feedback from carriers, brokers, and technology firms corroborated by recent CMS data highlighting the scope of the decline.

Small and medium-sized enterprises are advised to strengthen product defect insurance to mitigate risks from manufacturing errors and consumer claims.

The increasing adoption of EVs presents challenges to traditional risk models, leading auto insurers to rethink strategies to remain competitive in a changing market.

AM Best forecasts stability in property reinsurance renewals for 2025, with no significant hardening or softening anticipated despite recent catastrophic hurricane events.

Nuclear verdicts have significantly contributed to rising liability claims over the past decade, affecting commercial general liability, auto, and product liability insurance lines, according to Allianz Commercial.

Insurers and contractors face allegations of fraudulent injury claims under New York’s Scaffold Law, raising questions about legal and operational safeguards.

Blue Yonder, a leading supply chain software provider, faced a ransomware attack impacting logistics and manufacturing sectors, highlighting critical cybersecurity challenges.

Insurers like Allstate are adopting flexible work environments to improve employee satisfaction and productivity, a growing trend post-pandemic.

Insurers are adopting Integrated Risk Management systems to unify risk insights, break organizational silos, and improve decision-making for business continuity.

Insurers are adopting Integrated Risk Management systems to unify risk insights, break organizational silos, and improve decision-making for business continuity.