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- Insurance News Digest 2-27-2025
Insurance News Digest 2-27-2025
This week, Florida insurance rates decrease while insurers push for higher rates in California after the wildfires
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
The U.S. property/casualty insurance sector saw a significant reduction in underwriting losses in 2024, decreasing from $24.6 billion in 2023 to $2.6 billion. This improvement is attributed to rate hikes and refined risk selection. AM Best anticipates continued positive trends in 2025, especially within personal lines.
A recent ValuePenguin poll indicates that claims handling issues accounted for 62.5% of all insurance complaints in 2024. Predominant concerns include delays (22.2%) and unsatisfactory settlements (12.2%). The data underscores the necessity for insurers to enhance their claims processes to boost customer satisfaction.
Verisk's decade-long analysis reveals a 63.7% increase in national residential reconstruction costs from October 2014 to October 2024. Factors such as the pandemic, inflation, labor shortages, and supply chain disruptions have significantly contributed to this rise, impacting both insurers and policyholders.
Analysts at Berenberg suggest that the global reinsurance market is poised for growth as it adjusts to increased catastrophe loss expectations. This recalibration is anticipated to sustain the heightened demand for reinsurance products.
LexisNexis has unveiled its Health Intelligence platform, designed to assist U.S. life insurers in refining their underwriting processes. By integrating comprehensive health data analytics, the platform aims to improve risk assessment accuracy and operational efficiency.
Several states, including North Carolina and South Carolina, are considering raising health insurance premiums for state employees due to significant budget shortfalls. Delaware has already implemented a 27% increase, highlighting the financial pressures on state-funded health plans.
The 4th Circuit Court of Appeals has affirmed that losses from cryptocurrency theft are not covered under standard homeowners insurance policies. This decision emphasizes the need for policyholders to seek specialized coverage for digital assets.
Sentry Insurance has integrated artificial intelligence into its claims operations, notably using AI for claim summarization. This advancement has resulted in significant time savings, streamlining the claims process and improving operational efficiency.
Industry expert Paul Carroll advocates for insurance companies to move beyond seeking efficiencies and experiment with deeper changes through generative AI. He emphasizes that such bold experimentation is essential for insurers to remain competitive and adapt to evolving market dynamics.
EverQuote, an online insurance marketplace, announced its fourth quarter and full-year 2024 financial results, highlighting significant revenue growth and an optimistic outlook for 2025. The company's performance reflects its expanding market presence and effective business strategies.
Focus Of The Week: Florida insurance rates decrease while insurers push for higher rates in California after the wildfires
Florida Governor Ron DeSantis announced significant progress in stabilizing the state's insurance market, leading to premium reductions. Citizens Property Insurance will decrease homeowners' premiums by an average of 5.6% statewide, while auto insurers like GEICO, State Farm, and Progressive are also implementing rate cuts.
California Insurance Commissioner Ricardo Lara has rejected State Farm's request for a 22% emergency rate hike on homeowners' insurance policies. Lara seeks more information from the insurer, emphasizing the need to protect consumers from unjustified premium increases, especially in the wake of recent wildfires.
Texas legislators have introduced Senate Bill 1246 to establish a state-run auto insurance program. This initiative aims to provide more affordable coverage options for drivers statewide, addressing rising insurance costs and accessibility concerns.
The Georgia Senate approved Senate Bill 68, a key component of Governor Brian Kemp's legislative agenda aimed at limiting lawsuits. The bill introduces stricter standards for property owner liability and seeks to reduce litigation costs, with proponents arguing it will stabilize expenses for businesses and consumers.
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