Insurance News Digest 2-12-2026

The P&C industry is recalibrating - stronger underwriting results, signs of market softening, and accelerating digital adoption. Capital strength, competition, and technology are reshaping growth and risk management in 2026. PS, don't miss the new trivia section below.

February 12, 2026

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Insurance News Trivia: Which Founding Father is also the founding father of fire insurance? (answer is at the bottom)

Top 10 Articles Of The Week

Insurers are shifting from “more data” to connected, trustworthy data that supports real-time decisions across the policy lifecycle. Unified operational data improves speed and efficiency while strengthening auditability and transparency as regulatory expectations rise.

The 2026 outlook centers on consolidation and operational efficiency, with health insurance positioned as the fastest-growing segment amid strained public systems and rising expectations. Modernization of core systems, cloud adoption, automation, and tighter cost control are emerging as key differentiators.

Insurify launched a ChatGPT app that allows consumers to compare quotes conversationally using personal driver data to generate tailored estimates. The move highlights how embedded AI assistants may reshape customer acquisition and raise expectations for speed and transparency.

4. CMS Proposes More Flexibility in ACA Exchange Plan Design

CMS is proposing to remove limits on nonstandard plan designs and roll back certain standardized exchange requirements. The changes would expand plan design flexibility while strengthening eligibility and enforcement efforts to address improper enrollments.

A warm, dry winter is increasing wildfire risk in parts of the West, prompting utilities to use public safety power shutoffs to reduce ignition risk. Utilities are relying on weather and fuels data to guide decisions, with significant implications for liability and insured losses.

Nearly two weeks after an ice storm, many northern Mississippi residents remained without electricity, facing spoiled food, limited heat, and water disruptions. The situation highlights how prolonged outages strain communities and test resilience and restoration planning.

Liberty Mutual’s asset-management arm is partnering with Ara Partners, including an anchor commitment to a new energy fund and additional capital for future investments. The move reflects how insurers are aligning long-term capital with decarbonization and infrastructure strategies.

8. Legal System Abuse Keeps Pushing Liability Losses and Premiums Up

A recent analysis links litigation trends and third-party litigation funding to rising liability losses, with Triple-I and CAS estimating more than $230 billion in added losses over the past decade. Legal system dynamics are increasingly viewed as a primary cost driver for the industry.

AIG reported higher underwriting income in Q4 2025, helped by lower catastrophe charges and a much-improved combined ratio in North America commercial. Leadership also pointed to recent partnerships and investments aimed at supporting capital-efficient growth.

Marsh’s index shows global commercial rates declined 4% in Q4 2025, marking a sixth straight quarterly decrease as competition and capacity increased. In the US, the overall composite was essentially flat, with property easing while casualty continued to firm.

Focus Of The Week: The P&C industry is recalibrating - stronger underwriting results, signs of market softening, and accelerating digital adoption. Capital strength, competition, and technology are reshaping growth and risk management in 2026.

Through the first nine months of 2025, U.S. P&C insurers posted a strong underwriting profit, driven by an improved combined ratio and steady premium growth. Policyholder surplus rose to about $1.2 trillion, reflecting continued balance sheet strength.

Analysts See 2026 Market Softening and Embedded Distribution Scaling

Fitch expects further market softening in 2026 as competition and capital increase, though macro uncertainty remains. Analysts also see casualty lines holding opportunity despite litigation pressures, and embedded distribution gaining momentum as a growth driver.

Usage based insurance is expanding, with millions of drivers sharing telematics data and growing interest in safety focused apps. Adoption depends on trust and clear value, while insurers use real time data to refine underwriting and accelerate claims handling.

Trivia Answer: Benjamin Franklin

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