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- Insurance News Digest 2-19-2026
Insurance News Digest 2-19-2026
Across the industry, insurers are moving from AI experimentation to execution, embedding tools in underwriting, claims and distribution. Investment is accelerating, but pragmatic leaders remain focused on governance, coverage clarity and proving measurable ROI.
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Top 10 Articles Of The Week
Nearly 3 million Medicare Advantage members, about 10% of enrollees, had to find new coverage in 2026 as insurers exited markets and reduced plan offerings, according to a JAMA study. Disruptions were twice as common in rural areas, with over 40% affected in seven states and 92% in Vermont, raising access concerns.
A UnitedHealthcare and Health Action Council report shows claims among Gen Z and millennials rising faster than for baby boomers, with growth nearly double from 2023 to 2025. Earlier chronic conditions and lower primary-care use are driving higher long-term employer costs.
P&C carriers face growing risk complexity and rapid AI-driven change across operations. With significant workforce exits expected by 2026, insurers are encouraged to align responsible AI adoption with upskilling and flexible talent strategies.
An analysis estimates Florida property-casualty costs are about 14.5% lower due to 2022 to 2023 reforms. The changes are linked to $4.2B in economic activity and more than 29,000 jobs, largely from litigation reforms.
CMS’ proposed 2027 rule would lift limits on non-standard ACA plans and end the standardized option requirement. The proposal expands issuer flexibility while tightening eligibility checks and broker oversight.
More insurers are exploring subscription-style and membership models to deepen customer relationships and generate steadier revenue. The shift focuses on ongoing engagement, bundled services, and value-added benefits beyond traditional risk transfer.
Carriers continue to face elevated claims severity driven by social inflation and pro-plaintiff jury trends. Leaders are reassessing underwriting discipline, pricing, and claims practices to protect profitability in a volatile legal environment.
New data shows moderating frequency but persistently high severity in personal auto claims. Repair costs, medical inflation, and advanced vehicle technology remain key drivers shaping underwriting results and rate strategy.
Aquiline has agreed to sell Relation Insurance Services to BayPine, marking another deal in the ongoing broker consolidation wave. The transaction highlights continued investor interest in distribution platforms and the growth outlook for specialty and middle-market brokerage.
After years of pricing volatility, parts of the property market are beginning to stabilize. Stronger underwriting discipline, capital inflows, and moderating catastrophe losses are helping carriers recalibrate capacity and risk appetite.
AI in Insurance: Across the industry, insurers are moving from AI experimentation to execution, embedding tools in underwriting, claims and distribution. Investment is accelerating, but pragmatic leaders remain focused on governance, coverage clarity and proving measurable ROI.
AIG CEO Peter Zaffino said generative AI is delivering measurable gains, helping process more submissions without increasing headcount. The company is embedding its AIG Assist tool across underwriting and claims, including in Lexington’s E&S operations, to improve speed and consistency.
Lockton Re argues AI exposures warrant a distinct commercial risk class as adoption reshapes cyber, E&O, D&O, EPL and CGL lines. The report highlights silent AI exposure, fragmented coverage, and growing gaps between intended and actual protection.
Gallagher Re data shows global insurtech funding rebounded to $5.08B in 2025, with roughly two-thirds directed to AI-driven ventures. While enthusiasm is strong, industry leaders caution that efficiency gains must translate into underwriting margin or revenue growth to justify spend.
Insurify introduced a ChatGPT app that allows consumers to compare auto insurance quotes directly within OpenAI’s platform. The move signals growing interest in conversational distribution models and digital acquisition strategies that meet buyers where they already engage.
Industry executives say insurers must modernize legacy systems and rethink talent strategies to unlock AI’s full potential. Beyond automation, AI is positioned to extend underwriting expertise and support decision-making, provided firms build on strong data governance and institutional knowledge.
Trivia Answer: $250,000,000 by HSBC in 2024.
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