Insurance News Digest 5-22-2025 (corrected)

Sorry, we re-sent a previous newsletter earlier today. Here's the new one. The Focus of the Week has life insurance industry updates for you.

May 22, 2025

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

1. Central US Storms Cause Up to $11B in Damage

Severe storms, including over 70 tornadoes, swept across the central U.S., causing between $9 billion and $11 billion in damages. The devastation underscores growing concerns over the increasing intensity of weather events and their impact on insured assets.

The property insurance market is cautiously entering the 2025 hurricane season amid recent gains in pricing and capacity. Despite these improvements, the sector remains alert after $83 billion in catastrophe losses in Q1.

Over 2.1 million Texas properties could be exposed to significant flood risk in the next 30 years. The article highlights low flood insurance uptake and calls for enhanced mapping and public awareness.

4. Homeowners Insurers Post Profit Despite Disasters

U.S. homeowners insurers reported stronger financials in 2024, with a 13.4% boost in premiums and a sub-100 combined ratio. These gains came despite frequent severe weather, pointing to better risk and rate management.

A week after receiving a 17% emergency rate hike approval, State Farm seeks another 11% increase in California. The move follows persistent wildfire losses and reflects ongoing insurer strain in high-risk areas.

Battery electric vehicles (BEVs) saw a 31% increase in collision claims frequency in Q1 2025, with average repair costs of $5,927 in the U.S. New tariffs threaten BEV adoption by potentially increasing manufacturing costs and consumer prices.

Stephen Hemsley resumes his role as CEO of UnitedHealth Group amid challenges like Medicare fraud investigations and a significant stock decline. His leadership is expected to steer the company through operational and strategic hurdles.

Insurance Business America named At-Bay, Arch Insurance, Coalition, Sompo, and Tokio Marine HCC as top cyber insurers for 2025. The selection was based on broker evaluations of coverage breadth, pricing, claims handling, and policy flexibility.

Glenn Renwick, former CEO of Progressive, passed away at 69. Renwick led the company for 16 years, significantly increasing revenues and embedding core values that continue to influence the company's culture.

10. Mexican Navy Ship Hits Brooklyn Bridge

A Mexican navy tall ship collided with the Brooklyn Bridge due to turbulent waters and possible engine failure, resulting in two fatalities and 19 injuries. The incident raises questions about maritime safety protocols in busy waterways.

Focus Of The Week: Several life Insurance updates for you this week.

Nationwide partners with Kadance to provide eligible life insurance customers access to a Precision Health Management Program. This initiative includes DNA-based testing, medication optimization, and personalized cancer support services, aiming to enhance policyholder well-being beyond traditional coverage.

UK-based insurtech YuLife reports £100 million in written premiums for the year ending June 30, 2024, marking a 31% increase from the previous period. The company attributes growth to upselling additional products and expanding its customer base, now covering 647,000 lives.

John Hancock marks a decade of its Vitality Program, which integrates wellness incentives into life insurance policies. The program has led to improved health outcomes and financial benefits for customers, reinforcing the value of proactive health engagement in insurance offerings.

Neutrinos announces a major partnership with a Fortune 500 life insurer to transform underwriting processes across eight countries. Utilizing AI-driven risk assessment, the collaboration aims to streamline intake journeys and deliver personalized customer experiences.

*See a list of our preferred publications here.