Insurance News Digest 10-9-2024

Florida braces for Hurricane Milton.

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Tampa Bay is preparing for a direct hit from Hurricane Milton, which could be the most significant storm to strike the region in over a century. Insurance claims are expected to soar in the wake of the hurricane.

Hurricane Milton, expected to make landfall in Florida, could result in significant insurance losses. The storm has the potential to impact the insurance-linked securities (ILS) market, particularly catastrophe bonds.

Severe weather events like Hurricane Helene are driving a surge in auto insurance claims. Carriers need to adopt new strategies for handling claims in the wake of more frequent and intense storms.

AccuWeather raised its estimate of Hurricane Helene’s total economic loss in the U.S. to between $225 billion and $250 billion, making it one of the costliest hurricanes in history.

Millions of U.S. homes affected by Hurricane Helene's heavy rains lacked flood insurance. The storm's rising toll is bringing increased scrutiny on flood coverage gaps and the reliance on government aid for recovery.

Insurance leaders see generative AI as a potential solution for managing property catastrophe risks. The technology is expected to improve risk modeling and claims handling efficiency.

State Farm has posted its worst homeowners' insurance loss ratio since 2011, as the company faces increasing challenges from natural disasters and rising repair costs.

Polly has partnered with TruStage to provide auto and home insurance to over 3,500 credit unions. By leveraging Polly’s platform, TruStage can offer a more personalized and cost-effective experience for its members.

Rising repair costs and the complexity of electric vehicles (EVs) are increasing claims costs for auto insurers. As insurers adapt to this new environment, they face challenges in managing inflation and supply chain delays.

Beazley projects an 18% year-over-year growth in cyber insurance, driven by increased demand following several major cyberattacks. The market is expected to see sustained growth through 2030 as companies seek better protection.

As market conditions change, insurers may face a softening market where underwriters act conservatively, exhibiting what some experts call "herd behavior." This could impact pricing and risk selection in the near term.

Marsh has completed a $7.75 billion acquisition to grow its presence in the U.S. specialty insurance market, onboarding 3,500 employees to strengthen its offerings in commercial P&C, management liability, and personal lines.

The "fear of missing out" (FOMO) is driving innovation across the insurance industry, with companies rapidly adopting new technologies to remain competitive and avoid losing market share to more innovative peers.

Amwins is offering a comprehensive insurance program for water well contractors, manufacturers, and suppliers, aiming to address risks in the groundwater industry.

Beazley has introduced Beazley Quantum, a new cyber consortium offering $100 million in coverage for companies with over $1 billion in revenue. This product is available through Lloyd's Global Wholesale platform.

Ryan Specialty acquired Everest Group's sports and entertainment insurance assets, adding a wide range of services for customers in leisure, sports, and entertainment. The acquisition includes Alive Risk, Everest's existing facility for these segments.

InsurTech startup Ledgebrook has secured $17 million in Series B funding. The company plans to use the funds to accelerate growth in the U.S. market, with backing from major industry investors like American Family Ventures.

The insurance industry must adapt to growing geopolitical risks, including the fallout from conflicts, economic instability, and cyber threats. Industry leaders need to focus on building resilience in response to these challenges.

Insurity has launched an AI-powered tool that helps insurers extract data from documents with 99% accuracy, offering cost savings and efficiency improvements for insurance carriers.

Aon has named a new reinsurance vice-chair and appointed a CEO for Aon Securities to enhance leadership in reinsurance and capital innovation. These changes aim to accelerate progress in insurance-linked securities and other capital solutions.

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