Insurance News Digest 8-27-2026

The No Surprises Act is adding billions in dispute-related costs, while employer health expenses keep rising. New federal changes aim to streamline the process and curb administrative strain.

August 27, 2026

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Insurance News Trivia: What was the first federal public health law in the US?

Top 10 Articles Of The Week

Commercial P&C pricing softened further in Q2 2026, with average account premiums down 2.0%. Property led declines, while umbrella and commercial auto still faced upward pressure tied to casualty severity.

Cigna is pairing medical and supplemental coverage in a new employer plan for groups with 500 to 2,999 employees. Automated claims matching can unlock up to $7,000 in cash benefits for qualifying health events.

Generative AI exclusions are spreading across standard commercial policies, with 2,369 filings already in force. Contractors may face coverage gaps even when AI plays a small role, and no admitted replacement product exists yet.

Sapiens filed a U.S. trademark application for SapiensAI, covering AI-powered insurance software and services. The move reflects its growing focus on agentic AI across claims, underwriting, policy and analytics.

Highmark Health Plans posted $672 million in H1 operating income, improving by $612 million year over year. Management credits cost actions and moderating claims trends, although medical costs remain elevated.

California lawmakers are pushing back on proposed wildfire liability changes that would shield major utilities. A Senate plan would preserve insurers’ ability to pursue utilities to recover fire claim payouts.

AI-enabled fraud and data authenticity now rank as the top emerging drivers of claim severity, according to a CorVel survey. Governance concerns remain the biggest barrier to using AI effectively in claims.

NCCI is recommending a 7.4% average workers’ compensation rate decrease in Florida for 2027. If approved, it would mark the state’s 10th straight annual cut as injury, claim and loss-cost trends continue to improve.

Marsh is launching Stratus, a property insurance exchange offering up to $10 billion in capacity for data center risks. The platform brings together 30 traditional and alternative capital providers to support large digital infrastructure projects.

10. Court Finds Insurers Not Liable in AME Pension Dispute

A federal judge ruled three insurers do not owe coverage for Newport Group’s liabilities tied to the AME Church pension lawsuit. The court found a prior acts exclusion barred coverage for interrelated alleged misconduct.

Topic of the Week: No Surprises Act Costs

The No Surprises Act’s dispute process has generated $22.4 billion in costs since 2022, Georgetown researchers estimate. Rising case volume and larger awards are adding pressure to employer health plans and premiums.

Federal agencies finalized changes to the No Surprises Act dispute process, including lower administrative fees and expanded claim batching. A new centralized IDR Gateway is also intended to streamline case tracking and resolution.

Georgetown researchers estimate the No Surprises Act’s dispute process has added $22.4 billion in costs over four years. Higher dispute volumes and awards are fueling concerns that the system may be pushing premiums higher.

Employer Health Costs Projected to Rise 9.5% in 2027

Aon projects employer health care costs will rise 9.5% in 2027, topping $19,000 per worker. Higher utilization, chronic conditions, costly claims and expanding GLP-1 use are driving another year of near double-digit growth.

Trivia Answer: "An act for the relief of sick and disabled Seamen," signed by President John Adams in 1798.

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