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- Insurance News Digest 12-5-2025
Insurance News Digest 12-5-2025
Climate volatility is reshaping the global risk landscape, with insurers facing mounting exposures from natural catastrophes. This week, we explore how recent storms and shifting weather patterns are pressuring underwriting strategies and future loss projections.
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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
Washington’s Insurance Commissioner approved nine insurers to sell group health plans to small employers in 2026, with premiums rising 12.8% on average. The hike reflects projected health care costs, 2024 medical spending, and growing care needs.
Vladimir Putin warned Russia may target ships from Ukraine’s allies amid rising tanker attacks. The threat could drive up marine and war-risk insurance costs, with insurers increasing rates or pulling back coverage in risk zones.
Despite challenges like social inflation and weak liability results, AM Best maintains a stable outlook on U.S. commercial lines. Strong underwriting, investments, and profits in Q3 2025 support the view, with workers’ comp and property lines performing well.
In a recent hearing, Senate HELP Committee members discussed extending ACA subsidies due to expire. A broader health care deal remains unlikely, but the extension could stabilize markets.
The December ITL issue highlights how AI and digital tools are helping manage workers’ comp risk, cut costs, and accelerate claims. It also underscores the need for human oversight.
Insurers report sharply rising war risk premiums for vessels entering the Black Sea, with daily policy reviews as the Ukraine conflict spreads to maritime zones. Rates have reached up to 1% of a ship’s value, adding tens of thousands in daily insurance costs.
State Farm is being sued for fraud and unjust enrichment after selling life and annuity policies from PHL Variable Insurance Co., which allegedly has a $2.2 billion capital shortfall. Policyholders claim their payouts are much lower than expected.
A recent commentary argues it's premature to call current insurance trends "inflection points," noting that only generative AI may significantly reshape business models. For most areas, talk of sweeping change is likely more marketing than substance.
The December Insurance Journal issue reviews program business growth, soft pricing, and rising market pressures for 2026, especially in volatile or litigation-prone lines. It calls for proactive strategic planning over reactive moves.
In a widely covered criminal case, surveillance footage shows Luigi Mangione being arrested for the fatal shooting of a health insurance executive. The case raises concerns about social unrest and its broader impact on the health insurance sector.
Focus Of The Week: Climate volatility is reshaping the global risk landscape, with insurers facing mounting exposures from natural catastrophes. This week, we explore how recent storms and shifting weather patterns are pressuring underwriting strategies and future loss projections.
Hail and wind storms across Queensland and New South Wales triggered a broad Insurance Catastrophe declaration, as claims surged to 44,600 and continue rising. Insurers warn this could become the region’s most costly natural hazard event this financial year.
Although there were no major landfalls, the 2025 Atlantic hurricane season saw several storms rapidly intensify offshore. Experts warn warming oceans could significantly raise insured losses in future seasons, posing a growing risk to East Coast carriers.
The 2025 Atlantic season featured spikes in storm intensity followed by quiet periods, with three storms reaching Category 5 after rapid intensification. This pattern highlights the challenges insurers face in modeling risk and pricing coverage year-round.
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