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- Insurance News Digest 8-7-2025
Insurance News Digest 8-7-2025
Insuring hole-in-one contests and AI algorithms shows the range and scope of the insurance industry. These less conventional lines reveal where innovation is happening quietly but meaningfully, often well ahead of mainstream coverage.
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Top 10 Articles Of The Week
Swiss Re’s preliminary estimates show that global insured losses from natural catastrophes are nearing US $80 billion in just the first half of 2025, almost double the 10-year average. With about 60% of losses typically in the second half, full-year claims could surpass $150 billion, driven by California wildfires and convective storms.
Financial advisors should prepare: clients aged 55 to 64 without employer coverage could face steep premium hikes (7 to 11.5%) during the 2026 ACA open enrollment, as subsidies expire and policy changes take effect. Enrollment could drop by nearly half, threatening market stability and increasing risk-pool imbalance.
Mercury Insurance will onboard thousands of Safeco renters, condo, and auto customers in California, after Liberty Mutual shifts its personal lines strategy. The arrangement aims to ensure uninterrupted coverage and continuity for affected customers and independent agents.
Aon’s Global 2025 Cyber Risk Report reveals that cyber incident frequency rose sharply in 2024, and while ransom payments dropped, reputational damage caused an average 27% hit to shareholder value. The report emphasizes investing in controls and cyber maturity to mitigate rising non-insurable risks.
Though only about 13% of U.S. consumers currently trust autonomous vehicles, claims data shows significantly fewer accidents involving driverless technology. The shift toward ADAS and automation is driving down claims volume, enabling insurers to focus on streamlined, tech-enabled claims processes.
In a “Future of Risk” interview, Oliver Wyman’s Mick Moloney explains how private equity firms like Apollo, Blackstone, and KKR are transforming life insurers into private credit platforms. Traditional insurers are being forced to shift toward asset management models or risk falling behind.
The Gifford Fire, now California’s biggest wildfire of the year, spans over 130 square miles in San Luis Obispo and Santa Barbara counties and threatens more than 870 structures. Containment remains low amid a heatwave and rugged terrain, raising insurance exposure concerns.
Lemonade posted continued gains in its car insurance product, reporting $150 million in gross written premium with strong telematics performance, but remains unprofitable overall. The company plans to build on car and Europe momentum while managing underwriting metrics.
First-half 2025 saw consolidation intensify, with fewer buyers (99 vs. 140 in 2020), but top acquirers now control over half the deal share. The M&A landscape appears to stabilize at 750 to 800 annual transactions as PE-backed firms dominate.
Marsh McLennan Agency acquired Olympic Insurance Agency in Simi Valley, which continues under its current leadership. The move strengthens MMA’s regional presence while maintaining operational continuity.
Focus Of The Week: Insuring hole-in-one contests and AI algorithms shows the range and scope of the insurance industry. These less conventional lines reveal where innovation is happening quietly but meaningfully, often well ahead of mainstream coverage.
This feature traces how Mark Gilmartin turned hole-in-one contest insurance into a broader “prize indemnification” business that spans skill contests, sweepstakes, and even sausage throwing competitions. It shows how insurers quantify unique risks and modernize claims handling amid social media scrutiny.
A report from the Deloitte Center forecasts global AI specific insurance premiums could reach $4.8 billion by 2032, growing at about 80 percent annually. Insurers are responding to AI driven liabilities from autonomous vehicles to algorithmic bias by launching specialized coverage products.
Recent insights highlight that umbrella policies often fill gaps left by primary liability coverage and underwriting now focuses more on loss history, carrier strength, and risk presentation. Market dynamics reflect rising social inflation and nuclear verdicts, alongside stable capacity and mindful rate increases.
Legal advisers warn that standard property and casualty policies lack data center specific coverage, especially around data loss, fire suppression damage, and downtime. New integrated programs like Aon’s lifecycle solution and Lockton’s SLA insurance are emerging to fill these growing protection gaps.
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