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Opening Note
Critical Thinking
The recent news that Acrisure would be laying off about 400 employees in early 2026 in its accounting workforce due to advances in technology and artificial intelligence rattled a few nerves. It’s not surprising that advances in AI tools might reduce the need of some employees in the industry. AI has been cited as the reason for other significant layoffs this year, so why not insurance.
In September, Accenture announced a “restructuring plan” that includes exits for workers that aren’t able to reskill on AI.
Salesforce eliminated 4,000 customer support roles citing AI can do 50% of the work now.
But while AI is “killing jobs,” there is some evidence that when AI is focused on specific tasks within a job role, employment in that role can actually grow. That’s because with those specific tasks automated by AI, employees can then focus on activities where AI is less capable, such as critical thinking or idea generation.
That’s according to a recently released study by the National Bureau of Economic Research, “Artificial Intelligence and the Labor Market.” According to a recent article by Seb Murray, for MIT Management Sloan School’s Ideas Made to Matter, the study found that when AI can perform most of the tasks that make up a particular job, the share of people in that role within a company falls by about 14%. However, if AI is only concentrated in just a few tasks within a role—leaving other job responsibilities up to the worker—employment in that role can grow due to significant productivity boosts.
“Firms that adopt AI don’t necessarily need to shed workers; they can grow and make more stuff and use workers more efficiently than other firms,” said Lawrence Schmidt, MIT Sloan associate professor, co-author of the study, in the article.
‘Firms that adopt AI don’t necessarily need to shed workers; they can grow and make more stuff and use workers more efficiently than other
firms.’
The study, was co-authored by Schmidt, Menaka Hampole of the Yale School of Management, and Dimitris Papanikolaou and Bryan Seegmiller of Northwestern University’s Kellogg School of Management.
“Employees may feel anxious about their roles as organizations adopt AI technologies,” wrote the authors of a recent study, “The future of AI in the insurance industry,” by McKinsey & Company. “However, history has shown that technology typically creates new needs and opportunities, leading to the emergence of different roles and responsibilities.” The authors advised employees that going forward it’s important to seek out the right skills and develop a clear understanding of AI’s enabling role in helping with their jobs.
How do you feel about the future of work in insurance with AI rushing through the door?
Chairman of the Board Mark Wells | mwells@wellsmedia.com
Chief Financial Officer Terry Freeburg | tfreeburg@wellsmedia.com
Circulation Manager Elizabeth Duffy | eduffy@wellsmedia.com
Staff Accountant Sarah Kersbergen | skersbergen@wellsmedia.com
EDITORIAL
V.P. of Content Andrea Wells | awells@insurancejournal.com
Executive Editor Emeritus Andrew Simpson | asimpson@wellsmedia.com
National Editor Chad Hemenway | chemenway@insurancejournal.com
Southeast Editor William Rabb | wrabb@insurancejournal.com
South Central Editor/Midwest Editor Ezra Amacher | eamacher@insurancejournal.com
West Editor Don Jergler | djergler@insurancejournal.com
International Editor L.S. Howard | lhoward@insurancejournal.com
Content Editor Allen Laman | alaman@wellsmedia.com
Assistant Editors
Jahna Jacobson | jjacobson@insurancejournal.com
Kimberly Tallon | ktallon@carriermanagement.com
Columnists & Contributors
Contributors: Grahame Cohen, Todd Henderson, Zach Lerner, Aviad Pinkovezky, Carmen Sharp Columnists: Chris Burand
SALES / MARKETING
Chief Marketing Officer
Julie Tinney | jtinney@insurancejournal.com
West Sales Dena Kaplan | dkaplan@insurancejournal.com
Romeo Valdez | rvaldez@insurancejournal.com
Kelly DeLaMora | kdelamora@wellsmedia.com
South Central Sales
Mindy Trammell | mtrammell@insurancejournal.com
Southeast and East Sales (except for NY, PA, CT)
Howard Simkin | hsimkin@insurancejournal.com
Midwest Sales
Lisa Whalen | (800) 897-9965 x180
East Sales (NY, PA and CT only)
Dave Molchan | (800) 897-9965 x145
Advertising Coordinator
Erin Burns | eburns@insurancejournal.com
Insurance Markets Manager
Kristine Honey | khoney@insurancejournal.com
Sr. Sales & Marketing Coordinator
Laura Roy | lroy@insurancejournal.com
Marketing Administrator
Alberto Vazquez | avazquez@insurancejournal.com
Marketing Director Derence Walk | dwalk@insurancejournal.com
DESIGN / WEB / VIDEO
V.P. of Design
Guy Boccia | gboccia@insurancejournal.com
Web Team Lead
Josh Whitlow | jwhitlow@insurancejournal.com
Ad Ops Specialist
Jeff Cardrant | jcardrant@insurancejournal.com
Web Developer Terrance Woest | twoest@wellsmedia.com
Web Developer Jason Chipp | jchipp@wellsmedia.com
Digital Content Manager
Ashley Cochrane | acochrane@insurancejournal.com
Videographer/Editor
Ashley Waldrop | awaldrop@insurancejournal.com
ACADEMY OF INSURANCE
Director Patrick Wraight | pwraight@ijacademy.com
Online Training Coordinator
George Jack | gjack@ijacademy.com
Andrea Wells V.P. of Content
Making a predict-and-prevent mindset shift in personal lines
“At
its core, insurance is a human business. It’s built on reassurance, not transactions.”
By Casey Kempton, President, Nationwide® Personal Lines
Economic pressures, rising repair costs and volatile weather are testing the limits of the traditional “repair-and-replace” model in personal lines insurance. Claims are rising faster than premiums can keep pace, driving higher rates, frustrating customers and eroding trust.
At the same time, consumers are delaying maintenance and assume that insurance will cover whatever they have lost, widening the gap between customer expectations and what insurance can realistically — and sustainably — deliver.
That’s why Nationwide is leading the shift to a predict-andprevent mindset. Consumers, agents and insurers gain more control by anticipating and remediating risks before they become costly claims. This approach is not abstract. It’s the path to long-term sustainability for our industry and a new way of thinking for our personal lines customers, especially those who prioritize protection.
How we got here
In many ways, our industry shaped how consumers think about insurance. We haven’t always explained the connection between economic and weather changes and rising property insurance costs, leaving many customers uncertain and confused.
Price-driven advertising and online shopping trained consumers to “switch and save” or bundle for discounts. This reinforced the idea that price, not value or level of protection, should be the deciding factor in coverage. Over time, this mindset eroded the perceived value of insurance and weakened relationships among insurers, agents and consumers.
The path forward
To shift the consumer to a predict-and-prevent frame of mind, we will give customers more control and confidence in protecting what matters most to them. Insurance must deliver day-to-day assurance through better experiences, clear communication, stronger agent and community engagement, and smarter technology. This approach accelerates the mindset shift and helps customers feel more in control.
What it takes:
• Demonstrate and communicate value: Show customers how personal lines insurance and industry professionals help protect what matters most before loss occurs.
• Build resilient customers and communities: Unite across the insurance industry to advocate for smarter community planning, stronger building standards, distracted driving laws and prevention-focused engagement.
• Embrace innovation: Adopt smart technology and usagebased insurance programs that give consumers more control, personalization and peace of mind.
This shift does more than ease anxiety; it also rebuilds trust. Customers demand safety, confidence and control, and they reward insurers and agents who deliver it.
Tools to help customers predict and prevent
Nationwide puts this mindset into practice with our smart protection suite — innovative programs and smart technology that help customers reduce risks at home and on the road:
• Ting, a plug-in smart sensor that helps protect families and homes from electrical fire hazards. Ting has already prevented thousands of potential fires.
• LeakBot, a device that attaches to a home’s main water pipe to detect hidden leaks before they cause major water damage.
• SmartRide®, which uses real-time driving feedback to encourage safer driving and reward good habits.
• Focused Driving Rewards®, a newer initiative open to all drivers, not just Nationwide customers. It’s designed to reduce phone-related distractions and reward safe driving with e-gift cards from popular retailers.
A call to action: Let’s shift mindsets together
A predict-and-prevent mindset will define the new standard of personal lines insurance. Our industry is at a turning point. Rising costs, unpredictable weather and shaken consumer confidence expose the limits of today’s unsustainable, reactive model. The cycle ends now.
Let’s chart a path grounded in foresight and resilience. A predict-and-prevent approach shifts customer focus from payouts to protection, from a passive financial burden to an active tool for prevention, security and a sense of control.
Like every pivotal moment in history, progress depends on all of us. We’re not only protecting what matters today; we’re pioneering what protection means for tomorrow. By embracing a predict-and-prevent mindset, we can lead boldly, protect our customers and communities, and set a new standard for our industry’s future.
“The time to act is now.”
News & Markets
An Unsustainable Trend – Declining P/C Rates and Rising Cost of Risk: Marsh’s John Doyle
By L.S. Howard
Property/casualty prices are declining, while the cost of risk continues to rise—a trend that is unsustainable over time, according to John Doyle, president and chief executive officer of Marsh McLennan (MMC).
Nevertheless, without significant changes in large loss activity as well as in the broader macro-economic environment, “we anticipate insurance and reinsurance market conditions seen so far this year will likely continue in 2026,” Doyle said during an analysts’ call to discuss MMC’s third-quarter earnings.
“We continue to see a competitive market characterized by slower growth from an uneven economy, stronger carrier ROEs, and continued decreases in overall rates, particularly in property reinsurance and property [catastrophe] reinsurance,” he said.
Indeed, Doyle noted that global property rates decreased by 8% during the third quarter, compared with a 7% decline in Q2 2025.
Further detailing the “unsustainable” mismatch between softening prices and the rising cost of risk, Doyle pointed to the “big pressure points” of a global economy that may be slowing, declining interest rates, growing exposure to extreme weather, the rapidly rising cost of liability
Rates in Review
Gin some markets—including in the U.S.—and increasing health care costs.
Cost-Saving Program
Launched
It is perhaps with an eye on these pressure points that Doyle announced a new program called “Thrive,” which will include “automation efforts and workforce actions” to optimize the company’s scale and specialization.
Over the next three years, he said, Thrive is expected to “generate approximately $400 million in savings with a portion being reinvested to drive additional growth. We will incur around $500 million in charges to achieve these savings.”
MMC announced last month that it was rebranding as Marsh while forming a new unit called Business and Client Services (BCS), which Doyle explained are core parts of the Thrive program. Thrive aims “to deliver greater value to clients, accelerate growth and improve efficiency,” Doyle said.
lobal commercial insurance rates during the third quarter decreased 4%— driven by property—which follows a 4% decline in Q2 2025, said John Doyle, president and CEO of Marsh McLennan, quoting Marsh’s Global Insurance Market Index, which skews toward large account business.
Overall, rates were down in the U.S. by 1%; Canada by 3%; the UK, EMEA, Latin America, and Asia were all down mid-single digits; and Pacific decreased by double digits, he said during MMC’s Q3 earnings call with equity analysts.
Bucking the trend toward softening rates was global casualty, which increased 3%, while U.S. excess casualty rose 16%, “reflecting continued pressure in the liability environment,” Doyle said.
Workers’ compensation decreased by 5%, global financial and professional liability rates were down 5%, while cyber decreased 6%, he added.
“The efficiencies we gain through the program will support investments in talent and technology. As we increasingly deploy AI, we can deliver even greater value for clients and colleagues. Thrive will also help us continue to expand margins,” he added.
Competitors’ Hiring Practices
Doyle went on to discuss talent in the re/insurance marketplace with a pointed complaint about competitors that poach MMC colleagues.
“A few competitors have engaged in unlawful and unethical hiring practices and encourage talent to violate their covenants as a deliberate strategy to build their businesses. In these cases, I believe it’s important to call out this behavior and to protect our rates,” he said.
The company has responded with lawsuits, including one against rival Willis Towers Watson in May for allegedly stealing clients and another in October against Granite Insurance Agency for poaching former staff.
“This is a people business, and we have an unmatched depth of talent with over 90,000 colleagues, and we love to compete because it makes us better,” he said, adding that colleague mobility is good for the industry “and has served us well because we are an employer of choice with a strong colleague value proposition.”
News & Markets
Workers’ Comp Continues to Lead P/C industry With Strong Profits
Although economic uncertainty could affect insurers in the near to midterm, workers’ compensation continues to be a key driver of the profitability of the entire property/casualty insurance industry even as prices for the line are falling, according to a new AM Best report.
Workers’ comp remained profitable in 2024 with a combined ratio of 88.8—the lowest among the major P/C lines of business—even as net premium written for the industry fell nearly 7% due to rate decreases and pricing cuts, says Best’s aptly titled market report, “Workers’ Compensation Continues With Strong Profits, Despite Pricing Cuts.”
The picture isn’t expected to change. Midyear results indicate 2025 will be another profitable year and another year with a decrease in premium in line with more rate decreases.
Christopher Graham, senior industry analyst, Industry Research and Analytics, AM Best, noted that workers’ comp underwriting profits over the past decade have been largely attributable to favorable prior-year loss development. “While the reserve cushion appears to be shrinking, it is expected to provide benefits to calendar-year profitability in the medium term,” Graham added.
California remains the state with the largest share of national workers’ comp premium, with more than 20% of direct premium written in the country—twice as much as any other state. The top 10 states represent more than 60% of the national premium. According to AM Best, as good as the overall results were in 2024, in six of these top 10 states, results were even better: The statewide combined ratio was better than the national combined ratio.
The report touches on what forces could alter the positive outlook. For one, the segment’s payroll exposure base is susceptible to macroeconomic shocks, the report points out. AM Best sees the possibility of a recession, tariff and immigration policies, and legislative changes as potential headwinds for this line of business.
“A key question for the workers’ compensation line is how much longer will rate and pricing declines continue and cause dissipating profit margins before insurers begin to hold the line on pricing, since, for many companies, workers’ compensation profits help offset more uncertain underwriting results for other lines of coverage,” said David Blades, associate director, Industry Research & Analytics.
‘A key question for the workers’ compensation line is how much longer will rate and pricing declines continue and cause dissipating profit margins before insurers begin to hold the line on pricing ...’
In one executive’s view, the workers’ comp market in California may already be headed in a different direction. John Bennett, chief underwriting officer at BindDesk Insurance Services, recently wrote that while California employers have enjoyed a soft market for the last decade, there are indications of the market hardening. Bennett says workers’ comp rates in California are increasing due to a combination of higher medical costs, more expensive claims, and changes in legal or regulatory requirements. He noted that the California projected accident year
combined ratio for 2024 is 127. Rising costs prompted the Workers’ Compensation Insurance Rating Bureau of California to propose an 11.2% advisory pure premium rate increase for September 1, 2025. California Insurance Commissioner Ricardo Lara approved an average 8.7% increase in advisory pure premium rates.
Opportunity Market
Overall, the commercial insurance industry is entering a period of stability and opportunity made possible by an abundance of capital and the power of artificial intelligence (AI), according to another report from global broker Willis. According to Willis, nearly every commercial line of insurance—except for excess casualty—is in soft market territory. Workers’ comp remains favorable, supported by a $16 billion reserve surplus.
This report finds that insurers, with backing from industry surplus capital exceeding $1 trillion and reinsurance capacity over $725 billion, are pursuing growth across multiple product lines. Capital abundance is only part of the story. Artificial intelligence is “actively reshaping” the industry. “From the boardroom to the underwriting desk, AI-enabled tools are unlocking deeper insights, driving more informed decision making and expanding the very definition of insurability,” the authors contend.
Understanding Hidden Gaps in Commercial Property Coverage Advertisement
The defining feature of today’s commercial property market isn’t simply hardening or softening—it’s volatility. After years of record rate hikes and restricted capacity, the pendulum is rapidly swinging toward lower premiums and broader availability. This instability makes long-term planning difficult for brokers and carriers alike, as today’s push to regain market share can be just as unpredictable as the hard market that came before it. The result is often thinner coverage, and more exclusions.
“I have seen it firsthand,” says Aaron Lowenthal Senior Sales Director at Amalgamated Insurance Underwriters. “Well-managed properties with strong valuations can appear fully protected on paper, only to face limitations that leave them millions short when a loss strikes.”
In today’s environment, the biggest shock isn’t the premium, it’s discovering the coverage doesn’t reach as far as expected when a loss occurs.
These Gaps Are Real
Valuation Gaps:
An apartment operator in Southern California insured a 120,000-square-foot complex at $225 per square foot—$27 million in total insured value. A 125% margin clause limited recovery to $33.75 million, yet rebuilding costs had climbed to $400 per square foot, or $48 million. When a wildfire destroyed the property, the owner faced a $14 million shortfall. What looked like full replacement cost on paper turned into a devastating coverage gap and months of costly litigation against the brokerage.
Nonrenewal Despite Renovations:
A hotel owner in the Midwest invested heavily in renovations for a $12 million property—new plumbing, roofs, and full interior upgrades. Yet when renewal came up, multiple carriers declined due to older exterior entrances, remediated aluminum wiring, and a lack of central fire alarms. Those details outweighed the owner’s improvements in the eyes of many underwriters, leaving the property without coverage despite strong operations and occupancy. It’s the kind of situation that highlights the need for an E&S carrier capable of nuanced underwriting—one that recognizes remediation efforts and responds with robust coverage instead of blanket declinations.
Hidden Exclusions:
The board of a California HOA believed their $48 million policy provided protection against core perils like fire and wind. When a $2 million blaze struck, their claim was denied due to a fine-print exclusion for fire losses tied to outdated breaker panels. Months of back-and-forth ended with no payout, leaving the community uninsured and the broker facing litigation from frustrated board members. Exclusions like these, often buried deep in policy language, can erase coverage for the very risks owners assume are included—turning a standard loss into a financial shock.
Why These Gaps Are Increasing
Margin clauses, rigid eligibility criteria, and hidden exclusions are appearing with greater frequency across property markets. As carriers expand appetite to regain premium, coverage forms often tighten quietly. Policies that appear competitive may hide constraints that erode protection when losses occur. This is why brokers need to look beyond pricing and capacity—and focus on the fine print and intent behind each form.
and sub-limits that reduce coverage on forms appearing to offer full replacement cost. Focusing on how each market handles blanket limits versus capped values is essential to evaluating true exposure and identifying potential shortfalls.
•Exclusions with teeth. Routine exclusions— breaker panels, wiring types, roof age, or year of construction—can wipe out protection for entire risk categories. Anticipating these terms allows brokers to redirect clients toward markets that assess properties holistically instead of through restrictive checklists.
Turning Challenges into Opportunities
In a volatile market, the challenge isn’t understanding insurance fundamentals—it’s execution.
•Remediation as leverage. Many hard-toplace properties are well-run, with responsible ownership and solid fundamentals. When paired with good documentation this can help underwriters see beyond surface risk indicators and unlock coverage options when the standards decline.
•Margin clause awareness. Brokers are increasingly encountering margin clauses
Working with specialty markets like AIU gives brokers and agents more options when standard carriers say no. AIU evaluates each property on its full merits—recognizing remediation efforts, valuing sound management, and avoiding one-size-fits-all criteria. By focusing on underwriting nuance rather than rigid rules, AIU helps brokers turn difficult or previously declined accounts into viable,
$87,000
The amount a North Carolina woman defrauded insurance companies by illegally obtaining and administering weight-loss medication, the state department of insurance alleges. Heather Ann Robinson, 37, of Kenly, was charged with 170 felonies, including insurance fraud, identity theft, and credit card fraud. She also used stolen identity information to siphon some $46,614 from victims’ 401(k) retirement accounts, DOI officials said.
2.88 Million
400
The number of Acrisure employees expected to be impacted by layoffs in early 2026. The company cites advancements in technology and artificial intelligence as the reason behind the move.
The number of Tesla vehicles equipped with a Full Self-Driving system involved in an investigation by the U.S. National Highway Traffic Safety Administration. The investigation was prompted by more than 50 reports of traffic-safety violations and a series of crashes. The auto safety agency said FSD—an assistance system that requires drivers to pay attention and intervene if needed—has “induced vehicle behavior that violated traffic safety laws.”
2.5 Million
The number of cubic yards (1.9 million cubic meters) of sand that’s being dredged and pumped from offshore to replenish Florida’s beaches. Beaches are being widened by as much as 100 feet along a 35-mile stretch of hurricane-depleted shoreline in Pinellas County that includes cities such as Clearwater Beach, Indian Rocks Beach, Belleair Beach, and Redington Beach. Pinellas County is spending more than $125 million in tourism tax revenue to cover the costs.
Declarations
Shock to the System
“Climate-related shocks are likely to be wide-reaching and secular, rather than narrow and cyclical. There’s a long-term trend, certainly on the physical risk side, that could impact bank business models.”
— Kevin Stiroh, who left the Fed earlier this year after it wound down large parts of its work on monitoring how global warming is impacting financial stability, speaking on how banks should expect to see the fallout “materialize” in balance sheets and income statements. Despite those risks, banks and investors have yet to properly map out how climate-related losses will be distributed, Stiroh said. Those at risk include homeowners, banks, insurers, and the holders of securitized financial instruments.
Data Out to Dry
“These new data centers are enormous. I don’t know where you get the water to do that in a state that’s already waterstressed, not only from drought but also rapid population growth in both the population and industry.”
— Robert Mace, executive director of the Meadows Center, speaking on water supply concerns and the plans for more Texas data centers. There are four data centers planned for the state’s Panhandle region, including in Amarillo, Turkey, Pampa, and Claude, and across the state as AI campuses expand in the Permian Basin, and 30 data centers are planned for Sulphur Springs, a small town in East Texas.
Fraud Squad
“The cost of insurance is something all families must be concerned with. Insurance fraud only adds to that cost. In this case, the defendant is someone who worked in the industry. We need to be able to trust the people who are working for insurers to do their jobs fairly and honestly.”
— New Jersey Attorney General Matthew J. Platkin speaking on the case of a former New Jersey insurance adjuster charged with creating and submitting phony claims, approving them himself, and directing nearly $200,000 in payments to bank accounts he controlled. John Philbin, of Clementon, has been charged with insurance fraud and theft by deception.
Human Rules Apply
“If a practice is prohibited for a human to do on behalf of an insurance company, it is prohibited for AI to do. Artificial intelligence is not an end run for insurance companies around a state’s statutes or its regulations.”
— Paul Martin, vice president of state affairs for the National Association of Mutual Insurance Companies, testifying before the Florida House Subcommittee on Insurance and Banking ahead of the 2026 legislative session. Despite the rapid rise of AI in the insurance sector and claims of widespread errors and even discrimination by algorithms, insureds will be protected by existing statutes, insurance advocates told Florida lawmakers.
Small Hail, Bigger Claims?
“This data challenges long-standing opinions by insurance company experts that have denied or minimized damage from small hail. If the science says these storms age shingles years ahead of schedule and set the stage for catastrophic failure in later storms, then dismissing that damage at the claims desk is at odds with the evidence.”
— Attorney Chip Merlin, commenting on a new study by the Insurance Institute for Business and Home Safety that found roof damage from smaller hailstones may be more significant than previously believed. Insurance policies generally consider minor hail damage as normal wear and tear, requiring a singular event causing actual physical damage for a claim.
No Driver, No Ticket
“That’s right … no driver, no hands, no clue.”
— A post written by the San Bruno Police Department in Northern California, when they pulled over a Waymo taxi after it made an illegal U-turn, only to find no driver behind the wheel and, therefore, no one to ticket. Officers were conducting a DUI operation early Saturday morning when a self-driving Waymo made an illegal turn in front of them. Officers contacted Waymo to report what they called a “glitch,” and, in the post, they said they hope reprogramming will deter more illegal moves.
People
National
Joe Gates
Boxx Insurance, headquartered in Miami, Florida, appointed Joe Gates head of distribution, central. Gates has over 20 years of experience in insurance distribution, marketing and underwriting experience from At-Bay, Beazley and AIG. Claims Manager Ray Moylan joined the global claims and hackbusters team. Moylan has almost a decade of cyber, commercial and property claims experience at Marsh and Travelers.
lines insurance, previously serving as a personal lines underwriter/broker at Risk Placement Services Inc. and a commercial lines underwriter at Nationwide.
Luceno joins the team as a personal lines insurance broker, bringing more than six years of experience in personal lines insurance. He most recently served as an assistant vice president at AmWins.
GEICO, headquartered in Chevy Chase, Maryland, named Arianna Orpello as its new chief marketing officer.
Thomas Beale joins Boxx’s technology team as head of engineering and architecture. Beale has experience in security and cyber insurance from Converge Insurance, Guidewire Software and Corax.
XPT Specialty, headquartered in New Haven, Connecticut, added Phil Staver and Zach Luceno to its personal lines division.
Staver joins XPT Specialty as a senior personal lines underwriter/ broker. He has over 18 years in personal
Orpello will join the company on Jan. 5, 2026, from Goldman Sachs, where she most recently served as global chief brand officer. She has over 20 years of experience, including leadership roles at TD Bank, Capital One and ING Direct.
Howden appointed Tom O’Donnell as practice head of logistics, Howden US, which is headquartered in Depew, New York. O’Donnell is based in New York. He has over 25 years of experience, joining Howden from Aon, where he has held leadership roles since 2016, most recently as logistics practice leader – global. Previously, he was a senior director, head of contract risk – Americas at DHL and senior manager, insurance & claims risk manager at Schenker.
CFC, with U.S. headquarters in New York City, created a new U.S.-based cyber development team.
John Keebler joins the busi-
ness as its new national cyber development leader, U.S., based in Chicago, Illinois.
With a career in cyber insurance spanning over 15 years, Keebler joins CFC from Coalition, where he most recently served as national director for business development.
Morgan Justice was hired as cyber development manager for the Western region, U.S. She previously served as West Coast underwriting and business development leader at Coalition. She is based in the San Francisco Bay Area, California.
Brokerage Brown & Brown, based in Daytona Beach, Florida, revamped its retail segment leadership team as part of its ongoing integration efforts following the acquisition of Risk Strategies.
Leaders from Risk Strategies will join the existing retail segment leadership team, taking on expanded responsibilities.
Retail senior leaders include John Mina, John Greenbaum, John Scroope and John Vaglica.
Retail vice presidents include Ed Flanagan, Steve Giannone, Neil Krauter Sr., Robert Rosenzweig and Patrick Roth
CFC’s cyber development manager, based in New York, Annie Lyons, will also report to Keebler.
American International Group (AIG) promoted three AIG employees to lead commercial insurance in North America starting Jan. 1, 2026.
Allison Cooper and Barbara Luck will be co-presidents of AIG’s retail commercial business in North America.
Lou Levinson is now president of wholesale for North America Commercial.
Don Bailey is retiring from his role as CEO of North America commercial insurance at year’s end. He joined AIG from Bristlecone Partners at the start of 2023 as global head of distribution and field operations.
The ACORD board of directors appointed Chris Newman to lead ACORD Solutions Group (ASG) as CEO. Newman most recently served as president international of ACORD. Newman previously led (re) insurance company operations, including setting up operations in North America, Latin America, Asia and the Middle East.
East
World Insurance Associates LLC named John Cicchelli as head of its employee benefits practice.
Cicchelli, who will work out of the Iselin, New Jersey headquarters, has been in the insurance industry for over 30 years.
He most recently worked at Gallagher as their New York/ New Jersey metro growth leader. Before Gallagher, he served at Marsh & McLennan Agency.
continued on page 20
Ray Moylan
Thomas Beale
Arianna Orpello
Phil Staver
Zach Luceno
John Keebler
Morgan Justice
John Cicchelli
Every
day,
we create unique risk solutions for unique businesses.
When it comes to insurance for midsize and large businesses, we get it. We do it for all kinds of industries, tailoring our policy solutions from traditional to specialized coverage. With our experience in underwriting, innovative service, and claims, we are your one-stop shop.
Connect with your underwriter at The Hartford.
continued from page 18
James River Group Holdings Ltd. appointed Georgia Collier and Matt Sinosky to its excess and surplus (E&S) leadership team.
With more than two decades of experience in the E&S market, Collier rejoins James River from the Markel Group, where she served as a managing director and product line leader. She previously spent nearly 20 years at James River and will work from the company’s Richmond, Virginia, office.
Sinosky, based in Pennsylvania, joins from Arch Capital Group Ltd., where he served as vice president of wholesale distribution and led wholesale efforts across six business units. He has spent over 15 years in insurance distribution.
NFP, an Aon company, added two new benefits leaders, Mark Carroll and Bill Schmidt, and their respective books of business. Carroll and Schmidt join as vice president, Benefits, in NFP’s Atlantic region. Based in northern Virginia, Carroll and Schmidt each have three decades of experience and co-founded Small Business Insurance Solutions Inc. (SBIS). In hiring Schmidt, NFP has acquired the business operations of SBIS.
Carroll most recently served as a managing partner of Capital Group Benefits (CGB). As he joins NFP, he is selling his ownership stake in CGB.
Highstreet Insurance Partners, headquartered in Traverse City, Michigan, named Kristen Stokes as its chief broking officer. Stokes is based out of Highstreet’s New York
City office. She has over 20 years of industry experience, most recently serving as a qualified solutions group leader at Marsh McLennan.
Moines, Iowa, appointed Greg Bailey as CEO and Charlie Turri as chief technology officer (CTO).
Protecdiv, headquartered in Philadelphia, Pennsylvania, promoted Cate DelaCruz to executive vice president and head of analytics. DelaCruz joined Protecdiv as senior director of analytics in May 2020. She previously served as a quality assurance engineer/property insurance risk analysis domain expert at Insurity SpatialKey Solutions and as a U.S. property insurance portfolio manager at Argo Group.
Bailey previously founded and served as CEO of Rivet Co. Previously, Bailey founded and served as the CEO of Denim. He co-founded Insure.vc and held senior leadership roles with Athene, Pacific Life and TruStage.
Turri most recently served as CTO of Lenders Cooperative. Previously, he was CTO for Denim and ITPeopleNetwork. He has also held senior IT leadership roles at Athene and AIG. At Recoop, Turri leads efforts into data and AI integration, platform scalability, and automation.
South Central USG Insurance Services Inc. named Jeremy Hernandez as an underwriter in its Houston, Texas, office. Hernandez has over three years of underwriting experience at Bass Underwriters. Before entering the insurance industry, Hernandez worked at COSCO Shipping Lines and HapagLloyd AG.
West
The MEMIC Group, headquartered in Portland, Maine, hired Eric Stager as a safety management consultant on its loss control team, working with policyholders throughout the Northeast. Stager served as chief master sergeant and senior enlisted leader of the 439th Civil Engineer Squadron in the U.S. Air Force, and later as a compliance safety and health officer with the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA). He also held the role of high voltage electrical supervisor at Hanscom Air Force Base.
Midwest
Recoop Disaster Insurance, headquartered in West Des
Holmes Murphy, headquartered in Waukee, Iowa, hired Jordan Anderson as vice president and employee benefits sales leader in its Sioux Falls, South Dakota, office. He most recently served as vice president of sales and account management at Avera Health Plans, and previously worked at United Healthcare and Aetna.
DOXA, headquartered in Fort Wayne, Indiana, appointed Kevin Wall as president. Wall has over 15 years of experience. Before joining DOXA in 2017, Wall served as director and senior financial analyst at Aon Affinity.
Pinnacol Assurance, headquartered in Denver, Colorado, named Dr. Gabriel Lockhart its senior medical director. Dr. Lockhart previously served as medical director of the ICU and quality improvement chairman at Saint Joseph Hospital. Lockhart is a board-certified pulmonary and critical care physician. He was recently elected president of medical staff at National Jewish Health and is a member of the faculty at the University of Colorado School of Medicine.
The MJ Companies named Melinda Eckard vice president of employee benefits operations and client experience.
Eckard, based in Phoenix, Arizona, has nearly two decades of expertise in insurance, risk management, and employee benefits, having held various roles with Willis Towers Watson. The MJ Companies is headquartered in Indianapolis, Indiana.
Cate DelaCruz
Eric Stager
Kevin Wall
Melinda Eckard
Dr. Gabriel Lockhart
Jordan Anderson
Business Moves
National
Marsh McLennan to Become Marsh
Marsh McLennan will change its brand to “Marsh,” effective January 2026, and has created a new unit, Business and Client Services (BCS).
The company’s four businesses will adopt the Marsh brand beginning in 2027, following a transition period. After that transition period, Marsh and Mercer will each go to market under the new Marsh brand. Guy Carpenter will become “Marsh Re.” Oliver Wyman will go to market as “Oliver Wyman, a Marsh business,” while the operating unit Oliver Wyman Group will become “Marsh Management Consulting.” The company’s stock ticker symbol becomes “MRSH” in January 2026.
BCS brings together the firm’s technology, data, and operations teams under the leadership of Paul Beswick, chief information and operations officer.
Bold Penguin, SquareRisk
Dublin, Ohio-based Bold Penguin, founded in 2016, acquired SquareRisk, a digital, artificial intelligence-enabled wholesale insurance marketplace.
The acquisition positions Bold Penguin, a subsidiary of American Family Insurance, to accelerate its integration speed and expansion into specialty and excess and surplus (E&S) markets while building immediate scale into digital wholesale operations.
SquareRisk, founded in 2022, connects retail brokers to over 45 specialty carriers and MGAs for industries such as
contractors, transportation, hospitality, manufacturing, and more.
Terms of the deal were not disclosed.
East
Lawley, ROC Insurance Services
Buffalo, New York-based independent insurance brokerage Lawley merged with ROC Insurance Services in Rochester.
Founded in 2012, ROC Insurance Services is a Medicare and individual health insurance agency. ROC Insurance Services founders Rick and Lynda Grossmann and 13 employees will join Lawley, which has more than 600 associates nationwide.
This partnership adds Lawley’s 19th location. Lawley has branch offices across New York, New Jersey, Connecticut, and Florida.
Midwest
Arthur J. Gallagher & Co., Strategic Services Group Inc.
Arthur J. Gallagher & Co. acquired Rochester Hills, Michigan-based Strategic Services Group Inc. Terms of the transaction were not disclosed.
Strategic Services Group provides employee benefits consulting services across a range of industries in Michigan and the Midwest. Doug Roehm, Greg Sudderth, and their team will remain in their current location under the direction of Brian Lomas, head of Gallagher’s Great Lakes region employee benefits consulting and brokerage operations.
South Central
Higginbotham,
Stephens Insurance Services
Higginbotham acquired Lubbock, Texas-based Stephens Insurance Services, a benefits specialist. The acquisition pairs on-the-ground relationships with added resources to enhance combined service offerings across West Texas and into eastern New Mexico.
Stephens Insurance Services specializes in group benefits, individual health and life benefits, and Medicare advisory assistance.
Southeast
Engle Martin & Associates, Technical Services
Engle Martin & Associates, based in Atlanta, acquired Integra Technical Services, an international adjusting firm headquartered in London.
Integra manages claims in construction, engineering, energy, manufacturing, and mining, and has adjusters in the U.S. and on four continents.
Integra will continue operating as a standalone business, retaining its brand, leadership team, and service model. The current leadership will maintain oversight of the company’s portfolio. Terms of the deal were not disclosed.
Engle Martin, in business since the late 1990s, has some 800 claims professionals in 75 U.S. locales.
West
The Liberty Company Insurance Brokers, High Ground Insurance Services
The Liberty Company Insurance Brokers acquired High Ground Insurance Services in Torrance, California.
High Ground is a locally owned regional insurance broker and risk management consultant with a national reach. The firm offers specialized services in workers’ compensation claims management, employee benefits plan administration, loss-sensitive insurance program design, and coverage analysis.
The Liberty Company Insurance Brokers is a privately held insurance brokerage.
News & Markets
Natural Disaster Claims in 2025 to Again Top $100B Despite ‘Abnormally Low’ Q3 Events
By L.S. Howard
Global insured losses from natural catastrophes during the first nine months of 2025 are estimated to hit $105 billion, bringing the sixth consecutive calendar year with losses topping $100 billion and the eighth year since 2017, according to Gallagher Re.
Ironically, there was an uncharacteristic lack of major natural disasters between July and September, which led to one of the least expensive third quarters for insurers since 2000, said Gallagher Re in a report titled “Natural Catastrophe and Climate Report: Q3 2025.”
“The abnormally low frequency of highcost events has, thus far, left the year well within annual catastrophe budgets for governments and the insurance industry,” the report said, explaining that the below-average claims are largely the result of quieter-than-expected tropical cyclone activity in the Atlantic and Pacific oceans and generally manageable flood and storm events worldwide.
Looking at Q3 on its own, Gallagher Re said it tentatively has produced less than $15 billion in insured claims—the lowest total since 2016 ($18 billion).
The estimated $214 billion in overall economic losses (which include insured losses) from all natural perils during Q1-Q3
was well below the 10-year Q1-Q3 average of $338 billion.
Gallagher Re described 2025 as “topheavy,” with the top five costliest events in January accounting for 53% of all global insured losses. These events were the two major January wildfires in the Los Angeles area and three outbreaks of severe convective storms (SCS) in the U.S.
Entering the fourth quarter, preliminary data indicates this year’s natural cat losses will remain well below recent averages, said the report, explaining that Q4 is typically one of the least expensive on an economic and insured loss basis.
“Late-season tropical cyclone landfalls remain an ongoing risk, as is the constant possibility of a consequential earthquake,” the report said.
Source: Gallagher Re
If the final quarter of 2025 produces manageable losses, “this will likely be a further boost to the re/insurance industry’s financial buffers,” the report added.
Gallagher Re estimates it would now take an event, or series of large events, resulting in an insured loss of at least $115 billion to meaningfully impact the re/insurance industry. “This suggests that even a singular $100 billion event may not strongly change the recent softening shift in property reinsurance renewal pricing.”
Despite the lower insured losses for the first three quarters, Gallagher Re emphasized that with the increasing influence of climate change, the trend of greater losses over time is likely to persist as weather events becomes more extreme “or shift their geographical occurrence patterns.”
Other findings from the report include:
• There have been 16 billion-dollar insured loss events thus far this year—15 in the U.S. and one in Asia Pacific—marking the lowest Q1-Q3 total since 2017 when 16 events occurred.
• The costliest individual non-U.S. event is the March 28 Myanmar earthquake, which also caused major damage in Thailand.
• Other notable events included Cyclone Alfred (March 8-10 in Australia); Windstorm Éowyn (which hit Ireland, the Isle of Man, and the UK on January 24 and Norway on January 24-25); the Taiwan earthquake (January 21); and a series of severe summer hailstorms and flooding in Europe.
• U.S. severe convective storms cost insurers an estimated $46 billion, the third consecutive year in which U.S. SCS claims through September exceeded $40 billion. Insured SCS losses in the U.S. this year already amount to the fourth-costliest year on record, behind 2023 ($62 billion), 2024 ($57 billion), and 2020 ($47 billion).
Rescuers work at the site a high-rise building under construction that collapsed after an earthquake, in Bangkok, Thailand, on March 28, 2025. (AP Photo/Wason Wanichakorn, File)
News & Markets
Can a More Unified Front Be Formed Against Legal System Abuse?
By Chad Hemenway
To tell the public what it spends on insurance—an amount largely affected by what it calls legal system abuse—Uber has started to provide information on customers’ receipts.
“To give you a sense of how bad the problem has gotten in certain places, our worst market—LA County—48% of the average rider fare goes toward insurance,” said Adam Blinick, senior director of public policy and communications for Uber.
“That doesn’t make any sense in the reasonable universe we operate in,” he said during a panel discussion at the American Property Casualty Insurance Association’s annual meeting in Orlando.
The company has started to go on the offensive. Uber has filed Racketeer Influenced and Corrupt Organizations (RICO) lawsuits in New York, Florida, California, and Pennsylvania against lawyers and medical providers it thinks are committing fraud and driving up costs.
“Our desire is not to settle these things out. We want to see them through,” Blinick
said, adding that other corporations have reached out to ask advice on methodologies and building cases. This seems to indicate a willingness or desire to share information. “Let’s build the case to show the kinds of information we could be sharing amongst ourselves to get to the root of fraud and billing malpractice and the like, and make a case for reform.”
Plaintiffs’ lawyers are already highly coordinated, sharing theories, recruiting firms into new mass torts, and investing heavily in political campaigns. In the meantime, third-party litigation funding (TPLF) has become big business.
Gareth Kennedy, principal of insurance and actuarial advisory service for EY, said the firm has found the average cost for a commercial claim has gone up 10% to 11% per year since 2017. In looking at the root cause, TPLF came to the surface.
Though transparency was an issue since TPLF disclosure is only just starting to grab hold in some jurisdictions, EY concluded that over the next five years TPLF will cost the insurance industry up to $50 billion in direct and indirect costs, Kennedy said. “If
you look at that in terms of loss-ratio point drag, you’re talking a 4%-5.2% drag on loss ratios in [2024] premium dollars.”
Panelists urged businesses to respond with smarter political giving, coalition building, and consumer-focused messaging to combat legal system abuse.
Nathan Morris, senior counsel, litigation policy and risk mitigation at Johnson & Johnson, said trial lawyers are singularly focused and mission-driven, while outside interests of businesses are much more than just litigation, so “they don’t always have that kind of freedom of movement politically.”
“Businesses have the ability to do more politically and to be more engaged and more thoughtful,” Morris said. “I don’t think you need to match [trial lawyers] dollar-for-dollar.”
The focus should be on the consumer’s benefit of TPLF. “Is the consumer actually benefitting from that financing? Can we have an honest conversation about that?” he asked. Claims are being filed to “benefit people who are building up an asset class and not people that are seeking justice.”
News & Markets
State Officials Say New Rules, Delays for FEMA Grants Put Disaster Response at Risk
By Gabriela Aoun Angueira
State officials on the front lines of preparing for natural disasters and responding to emergencies say severe cuts to federal security grants, restrictions on money intended for readiness, and funding delays tied to litigation are posing a growing risk to their ability to respond to crises.
It’s all causing confusion, frustration, and concern. The federal government shutdown isn’t helping.
“Every day we remain in this grant purgatory reduces the time available to responsibly and effectively spend these critical funds,” said Kiele Amundson, communications director at the Hawaii Emergency Management Agency.
The uncertainty has led some emergency management agencies to hold off on filling vacant positions and make rushed decisions on training and purchases.
Experts say the developments complicate state-led emergency efforts, undermining the Republican administration’s stated goals of shifting more responsibility to states and local governments for disaster response.
In an emailed statement, the Department of Homeland Security said the new requirements were necessary because of “recent population shifts” and that changes to security grants were made “to be responsive to new and urgent threats facing our nation.”
Updates on Population
Several DHS and FEMA grants help states, tribes, and territories prepare for climate disasters and deter a variety of threats. The money pays for salaries and training, and such things as vehicles, communications equipment, and software.
State emergency managers say that money has become increasingly important because the range of threats they must prepare for is expanding, including pandemics and cyberattacks.
FEMA, a part of DHS, divided a $320 mil-
lion Emergency Management Performance Grant among states on September 29. The next day, it told states the money was on hold until they submitted new population counts. The directive demanded they omit people “removed from the State pursuant to the immigration laws of the United States” and to explain their methodology.
The amount of money distributed to states is based on U.S. census population data. The new requirement forcing states to submit revised counts “is something we have never seen before,” said Trina Sheets, executive director of the National Emergency Management Association, a group representing emergency managers. “It’s certainly not the responsibility of emergency management to certify population.”
With no guidance on how to calculate the numbers, Amundson said staff scrambled to gather data from the 2020 census and other sources, then subtracted the number of “noncitizens” based on estimates from an advocacy group.
They are not sure the methodology will be accepted. But with their FEMA contacts furloughed and the grant portal down during the federal shutdown, they cannot find out. Other states said they were assessing the request or awaiting further guidance.
In its statement, DHS said FEMA needs to be certain of its funding levels before awarding grant money, and that includes updates to a state’s population due to deportations.
Experts said delays caused by the request could most affect local governments and agencies that receive grant money passed down by states because their budgets and staffs are smaller. At the same time, FEMA also reduced the time frame that recipients have to spend the money, from three years to one. That could prevent agencies from taking on longer-term projects.
Bryan Koon, president and CEO of the consulting firm IEM and a former Florida emergency management chief, said state governments and local agencies need time to adjust their budgets.
“An interruption in those services could place American lives in jeopardy,” he said.
Grant Programs Tied Up
In another move that has caused uncertainty, FEMA in September drastically cut some states’ allocations from another source of funding. The $1 billion Homeland Security Grant Program is supposed to be based on assessed risks, and states pass most of the money to police and fire departments.
New York received $100 million less than it expected, a 79% reduction, while Illinois saw a 69% reduction. Both states are politically controlled by Democrats. Meanwhile, some territories received unexpected windfalls, including the U.S. Virgin Islands, which got more than twice its expected allocation.
The National Emergency Management Association said the grants are meant to be distributed based on risk and that it “remains unclear what risk methodology was used” to determine the new funding allocation.
After a group of Democratic states challenged the cuts in court, a federal judge in Rhode Island issued a temporary restraining order on September 30. That forced FEMA to rescind award notifications and refrain from making payments until a further court order.
The freeze “underscores the uncertainty and political volatility surrounding these awards,” said Frank Pace, administrator of
the Hawaii Office of Homeland Security. The state received more money than expected but anticipates the bonus being taken away with the lawsuit.
In Hawaii, where a 2023 wildfire devastated the Maui town of Lahaina and killed more than 100 people, the state, counties, and nonprofits “face the real possibility” of delays in paying contractors, completing projects, and “even staff furloughs or layoffs” if the grant freeze and government shutdown continue, Pace said.
The setbacks prompted Washington state’s Emergency Management Division to pause filling some positions “out of an abundance of caution,” communications director Karina Shagren said.
Disruption
Emergency management experts said the moves have created uncertainty for those in charge of preparedness.
The Trump administration has suspend-
ed a $3.6 billion FEMA disaster resilience program, cut the FEMA workforce, and disrupted routine training.
Other lawsuits also are complicating decision-making.
A Manhattan federal judge in September ordered DHS and FEMA to restore $34 million in transit security grants it had withheld from New York City because of its immigration policies. Another judge in Rhode Island ordered DHS to permanently stop imposing grant conditions tied to immigration enforcement, after ruling in September that the conditions were unlawful—only to have DHS again try to impose them.
Taken together, the turbulence surrounding what was once a reliable partner is prompting some states to prepare for a different relationship with FEMA.
Copyright 2025 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Closer Look: Commercial Lines Leaders
Commercial Lines Leaders
Top 50 Commercial Lines Agencies
About the Commercial Lines Leaders: The 2025 Commercial Lines Leaders in this special feature are taken from Insurance Journal’s Top 100 Property/Casualty Independent Agencies as reported in August. This list utilizes only the 2024 commercial lines property/casualty revenue numbers of the independent agencies and brokerages that submitted data to the Top 100 agencies report. For more information on Insurance Journal’s Top 100 Property/Casualty Independent Agencies list, contact awells@insurancejournal.com.
Ranked by Total 2024 Commercial Lines P/C Revenue
1 Alliant Insurance Services/Confie
2 HUB International Ltd.
$2 ,469,998,814 $17,636,809,076 $3, 430,361,887 14 ,141 Irvine, California
$250,000,000 $1,450,000,000 $265 ,000,000 1,200 Ladera Ranch, California
$222,504,788
26
28
33
34
35
36
37
38
39
40
41
42
43
50
1,148 Bangor, Maine
,626,295 595 Cedar Rapids, Iowa
,469,840 397 Bowling Green, Kentucky
,981,223 571 Carmel, Indiana
484 Norfolk, Virginia
573 Buffalo, New York
My New Markets
Sports, Leisure & Entertainment
Market Detail: Renaissance Specialty brings decades of experience insuring everything from major arenas and stadiums to festivals and local fairs. Renaissance strives to modernize and streamline special event insurance—delivering a more efficient, forward-thinking solution for the evolving needs of the entertainment industry.
Coverages include:
Sports, including amateur associations, national governing bodies, sports events, sports venues and complexes and professional teams and leagues.
Entertainment including casino and gaming operations, convention and civic centers, stadiums and arenas, performing arts centers, live music venues and amphitheaters.
Leisure, including amusement parks, water parks, family entertainment centers, gyms and workout facilities, trampoline parks and special events.
Venues, including casino and gaming operations, convention and civic centers, stadiums and arenas, performing arts centers, live music venues and amphitheaters.
Special events, including concerts, festivals, trade shows, fundraisers, parades, auctions, balls and galas, and many more.
Available Limits: Not disclosed.
Carrier: Not disclosed.
States: All 50 states and the District of Columbia.
Market Detail: Fire and water restoration contractors work on locations that have experienced natural or accidental disasters. These disasters may be small, such as a burst pipe, or bigger problems like fires, smoke damage, storm damage, damage from heavy rains, floods, tornadoes, hurricanes, even tsunamis. They can be devastating for the businesses that have to be restored; however, if a restoration contractor exacerbates or creates an adverse environmental condition during restoration activities, their client, and their own business, may never recover.
Available coverages include: contractors’ pollution liability, E&O, site pollution liability, auto, workers comp, and excess. Environmental concerns for fire/water restoration contractors: Examination of the area, cleanup of the area, bringing in heavy equipment if needed, and cleanup/ removal of trash.
Security during examination of the area: because they often don’t know what they may encounter, fire-water restoration contractors have to secure their work areas and make sure that third parties do not enter the work area where they may be exposed to hazardous materials.
Cleanup of areas: fire-water restoration contractors often have to clean possessions on and off-site. Often, these possessions may have been affected by chemicals on-site, or when water intrusion has occurred, mold can appear. Mold may become airborne and affect contractor employees or third parties.
Bringing in heavy equipment when needed: spills may occur from tanks containing fuel for heavy equipment, or exhaust fumes from equipment may be generated. Hazardous and non-hazardous materials may spill during loading/unloading activities.
Transporting waste or materials to or from a job site: Spills may occur while chemicals or equipment are being transported to or from the job site, or during loading/unloading. Spills may occur while waste, debris, etc., are being transported from the job site to a disposal site.
Disposal of waste at non-owned facilities: Restoration debris may be inadvertently mixed with hazardous waste and then disposed of improperly, causing contamination conditions at the landfill or disposal facility. Improper disposal of air conditioning and refrigeration units, which could result in fines, penalties, or claims against restoration entities. Improper disposal of asbestos, lead, and polychlorinated biphenyls (PCBs) containing components, which are regulated and should be handled as hazardous waste.
Insured’s owned premises: Materials that are being cleaned off-site may contain hazardous materials and could spill at the restoration contractor’s premises.
Contamination at owned premises could be caused by cleaning/maintenance chemicals or storage of heavy equipment, mobile equipment, or vehicles. Storage of paints, chemicals, solvents, etc. at owned premises. ASTs used for waste oil, hydraulic fluids, or fuel. USTs used for refueling vehicles or heating oil.
Available Limits: Not disclosed.
Carrier: Not disclosed.
States: All 50 states and the District of Columbia.
Market Detail: Trusted solutions for medical equipment businesses. ProTek, powered by NFP, provides a portfolio of enhanced general and professional liability insurance products to help companies that sell, service and manufacture medical equipment mitigate risks and manage costs. Experienced staff offers expertise and insurance coverages that help protect the medical device sales and service industry.
Available Limits: Not disclosed.
Carrier: Not disclosed.
States: All 50 states and the District of Columbia.
Truckers Seek Detours Around Rising Costs and Litigation
Tort Reform, Safety Tech, Claims Control
Seen as Best Routes
By Andrea Wells
The COVID-era boom in trucking is definitely over.
The trucking sector is experiencing one of its most challenging times, with trucking operators’ profitability dropping across all sectors, total costs continuing to rise, and freight tonnage and rates remaining stagnant or even slightly down.
Costs are up for diesel fuel, tractors and trailers, and insurance. Plus, there are the ongoing concerns over a shortage of drivers and the impact of runaway litigation.
Trucking activity in the United States decreased in September, pushing the level down to the lowest in three months. Specifically, truck freight tonnage declined 0.9% after gaining 0.9% in August and 1.1% in July, according to the American Trucking Association.
“Tonnage levels remain choppy, but they are up 2.1% since hitting a low in January,” said ATA Chief Economist Bob Costello. “Compared to the high three years earlier, however, truck tonnage is still off by 3.9%.”
Since the COVID trucking boom—where trucking company growth surged from the start of the pandemic until the end of 2023—there’s been a significant decline in freight volumes and rates nationwide. According to Denis Brady Jr., transportation broker at Burns & Wilcox, that loss of business has forced a large number of trucking businesses to scale back operations or shut down completely.
Data from the Federal Motor Carrier Safety Administration
(FMCSA) shows that the number of motor carriers declined 10% in 2024. In the first half of the year alone, nearly 10,000 carriers closed their doors. In 2025, more major trucking businesses have filed for bankruptcy as profit margins have been spread thin due to tariffs, heavy debt from overinvestments during the pandemic, and overall higher operating costs including higher insurance costs.
All of this has made trucking a very challenging insurance market. “Over the last decade, the insurance carriers have struggled to be profitable and at the same time the trucking industry is struggling to be profitable as well,” said Mark Gallagher, transportation practice leader at Risk Placement Services (RPS). “That’s a tough spot for truckers right now and for carriers alike.”
Some states are tougher than others when it comes to the insurance market. According to Gallagher, New York, New Jersey, Georgia, Texas, Florida, and California are historically tough states, along with Cook County in Illinois. “Rates are typically higher in those venues,” he said.
Gallagher has seen a lot of trucking firms shutter their doors during the past two years.
“Mergers and acquisitions are a big part of what we’re seeing with larger fleets purchasing some smaller ones,” he said. “We’re also seeing owner/
operators that acquired their own authority over the last few years now shut down their authority and lease their truck, or go back to a larger entity to become a driver—in essence, closing their doors.”
Litigation Against Truckers
Insurance is among the bumps in the road for trucking firms.
Burns & Wilcox’s Brady maintains the driver of skyrocketing liability rates in transportation is clear: litigation. “The personal injury attorneys are winning. They have been for a decade,” he said.
‘The personal injury attorneys are winning. They have been for a decade.’
RPS’s 2025 Transportation Market Outlook found that the cost to insure physical damage has increased by 18% in 2025 over 2024, while umbrella liability increased by 12%.
Settlement creep, a newer phenomenon where insured losses gradually increase over time, has led to auto liability
increases between 7.5% and 20%, the report said.
Litigation costs are higher than ever. According to the American Transportation Research Institute (ATRI), which tracks verdicts and settlements in the trucking industry, the number of cases resulting in verdicts over $1 million increased by 235% when comparing the 2005-2011 period and 2012-2019 period. The ATRI also noted that from 2010-2018, the average verdict over $1 million grew from $5 million in 2010 to $23.5 million by 2018.
While social inflation and nuclear verdicts are driving premium increases throughout the industry, some states are more difficult than others, as Gallagher noted.
In some regions, like New York City’s Bronx Borough, “it’s totally become a free-for-all,” said Greg Kroeger, managing partner at World Insurance Associates LLC.
“There’s certain venues where carriers just don’t want to write because they know that it’s going to be an uphill battle to defend the claim,” he said. “If you’re a carrier, you continued on page 30
Special Report: Trucking
continued from page 29
don’t argue a case in the Bronx. You just don’t.”
According to a recent report by Amwins, “State of the Market Transportation H1 2025,” the states of New York, California, Texas, and Illinois continue to see limited active players, and the casualty marketplace in New Jersey is “essentially non-existent” due to high-frequency claims and the increased limit requirement of $1.5 million.
But it’s not all bad news.
Jennifer Nuest, senior vice president, transportation practice leader at Amwins, sees some good news on the litigation front. She said the market appetite in states like Florida and Georgia is picking up in part due to recent tort reform measures.
Also, the industry sees some good news in the overturning of a $90 million nuclear verdict against trucking firm Werner Enterprises in Texas. While it’s too early to tell if the outcome of this case will help to set a new precedent in Texas, transportation leaders see the ruling and other tort reform
measures as positive.
“I would say these are very positive things for the industry to see some of the litigation reforms starting to get passed in various states, especially tough ones like Florida and Georgia that really need it,” Nuest said. “Unfortunately, the flip side of that is a waitand-see approach for many insurers,” she said.
Nuest doesn’t expect significant market changes until insurers see how these new state efforts play out. Even so, she believes the measures will likely open up the insurance
‘We need a lot more litigation reform to really move the needle on commercial auto...’
market for truckers in small but helpful ways.
“Maybe insurers make small creeps in their appetite,” she said. “For example, a carrier may say, ‘I’ll only write a risk in Florida if less than 40% of their miles are in Florida.’ And then they’ll change it to less than 50% of miles in Florida.”
Another effort that could provide some market relief in difficult states is recently enacted legislation requiring third-party litigation disclosure in several states. But Nuest cautions that any effects of the disclosure laws will not be seen for some time. “It’ll take at least a couple years before we really understand what the impacts are going to be there, but it’s good progress,” she said.
There’s a long road ahead to better times for trucking insurance and the commercial auto market in general, Nuest said.
“We need a lot more litigation reform to really move the needle on commercial auto as social inflation and especially a third-party litigation funding has added a lot of costs to claims,” she said.
Fighting Back
The primary line of defense against rising costs for insurance and against potential litigation is staying focused on safety. This can include encouraging the use of technologies like telematics and dashboard cameras.
“The more insurance carriers continue to lean into technology implementation requirements, such as forward-facing cameras, the better chance the insured will have to fight back against personal injury attorneys,” Brady said.
Telematics, or on-board devices that combine GPS and telecommunications to collect and transmit data on the truck’s location, performance, and driver behavior, have become the standard in safety for trucking companies and a requirement of many insurers for coverage, said Roman
Atkielski, senior vice president, commercial auto and garage division, at Jencap.
“It’s monitoring driver behavior, routes, things like hard brakes and hard turns and speed. These are all just safety issues that motor carriers really need to take seriously,” Atkielski said. “Cameras are also wildly important because they take all the guesswork out of a claim,” he added. “We can actually see the footage as to an incident, so that can tell us who was liable in a claim, and oftentimes it shows that our insureds are not liable.”
Years ago, if a truck rear-ended another vehicle, in most cases the truck driver would be named at-fault, Atkielski said. But what if the other vehicle swerved and cut off the truck in an unsafe manner? “So, cameras can really take all the ambiguity out of what happened in an accident,” he noted.
Claims Management
The industry can also fight rising costs through better management of the overall claims process. Early claim reporting and resolving claims faster dramatically reduces litigation risk and claim severity, Atkielski said.
“What we see is when these claims linger—nobody’s done anything for three months or 60 days or whatever it is—all of a sudden the claimant’s got an attorney involved because nobody’s talking to them,” he said. “But if we can get involved and say, ‘Hey, listen, we’re on this and we’re going to make you whole as quickly as humanly possible,’ if it’s a compensable claim, then the likelihood of them lawyering up is mitigated.”
Adjusters and carriers need to emphasize their time early in the claims process, said Harish Kapur, CEO of Across America Insurance Services, a Riverside, California-based commercial trucking and transportation-focused managing general agency. When claims get litigated, it’s often because the claim process and lifecycle of the claim simply took too long, according to Kapur. “What are you doing in the six months or three months? That’s your crucial time. That’s your money right there.”
This is one reason Kapur brought his firm’s claims process in-house. “We did this six years ago, and I wish we had done it sooner,” he said. “Why did I become a claims guy? I think because I felt like my defense attorneys or our TPA that we hired didn’t do as good of a job as they should have. They didn’t prepare the file as they should have, did not work the file the way they should have.” That led to some claims fights over damages or liability that “we should be accepting,” he said. “But the question really becomes are we fighting for the right reasons.”
Kapur said managing the claims process gives insight into what claims should be fought. “So, this year alone, we’ve taken a total of seven cases to trial. We just finished one yesterday, and we’ve got another one going in trial on Monday,” he said. “On three of them, we had 100% defense verdicts. We paid $0,” he said.
“I feel like insurance companies are not trying enough cases—they’re not trying enough cases, and that is giving a sense to the plaintiff’s side that it’s OK to ask for whatever they want to,” he said.
Handling claims in-house helps identify what claims are worth fighting and helps in preparation to defend those cases, he said. “We prepare the mediation brief, we prepare and go through every medical record, we tie it together, making sure things are lining up. That’s what we do, and we’ve had success on it.”
Kapur said out of the seven cases that have gone to trial, so far there’s only been one loss. “I wouldn’t even call that a loss because we ended up paying a reasonable amount,” he said.
“So, I feel like it’s been a good win because we’re not fighting for the wrong reason.”
Back to the Basics
For agents and brokers approaching the market for their trucking clients, Brady advises to keep it simple. “Go back to basics,” he said. “The three main things a trucking company can do to keep their insurance costs down are to focus on their safety scores, focus on driver hiring and in-house training, and to install dual-facing cameras in all trucks to record accident involvement as a better way to defend their interests against the personal injury attorneys.”
Historically, 70%-80% of accidents are caused by personal autos, yet most of the time the trucker’s insurance carrier ends up paying out due to lack of documentation or because the safety scores of the trucking company make it impossible to defend, he explained.
RPS’s Gallagher recommends that agents always be students of the industry. “Attend as many webinars and educational sessions as you can. We try to provide those on a regular
basis and as much as we can throughout the year for our agents,” he said.
Encourage trucking clients to keep a focus on safety, Jencap’s Atkielski said. “Report claims early, use cameras, telematics, and partner with trucking professionals who understand the market.” Take a look at usage-based insurance options, too. “There are some options out there for usage-based insurance, which will reduce the cost for operators,” he said.
“It’s usually monthly pay so there’s no premium financing.” And do whatever it takes to put the brakes on social inflation. “The industry really needs to find more ways to get in front of that, and a lot of that has to start with claims at the carrier level,” Amwins’ Nuest said. “How are we investing in claims more thoroughly and putting the foot down a little bit more, especially where third-party litigation funding is involved.”
New Cargo Theft Tactics Driving Claims
Cargo theft losses are also driving up costs for truckers. According to data from Verisk CargoNet, cargo theft surged 27% in 2024. The National Insurance Crime Bureau predicts a further 22% increase in 2025, driven by criminal profitability, advanced technology implementation, and geopolitical tensions.
Logistics service providers are now seeing nearly an average of $2 million in cargo stolen from them annually, said Chris Spear, president and CEO of American Trucking Associations in an October blog. “That’s an eye-popping number, but the true cost goes far beyond the stolen goods,” he wrote. “It disrupts deliveries, raises insurance rates, and erodes trust in the supply chain. And ultimately, consumers see higher prices.”
Amwins’ Jennifer Nuest said that cargo theft is not new to the sector, but tactics have changed.
“Especially with what people are able to do from a tech perspective, much of it has to do with social engineering too, where they will either use DOT number or actually purchase DOT numbers from people to use,” she said.
“So, it looks like there’s a legit DOT number that’s going to be picking up a load. They will go with their own semi-tractor to pick up that load, and then they’ll actually broker it out to a legitimate carrier. They kind of wash the load throughout that. So, that can be very difficult to track.” Another tactic is modifying bills of ladings. “They’ll go in and modify bills of lading and show, for example, that 50 pallets were supposed to be delivered instead of 55; then they’ll steal five of the pallets off the load.”
“While cargo theft continues to be an increasing factor in motor truck cargo rates, the industry has an opportunity now to utilize new cheaper tech to track high value/high potential theft cargo,” said Burns & Wilcox’s Denis Brady. “The hope is that utilizing this technology trucking companies will be able to curb the impact that the rising cost of freight theft has been having on everyone.”
Spotlight: Environmental
Are PFAS the New Asbestos? How Insurers and Businesses Can Get Ahead of the Forever Chemical Risk
Perfluoroalkyl or polyfluoroalkyl substances (PFAS), the synthetic “forever chemicals” found in everything from firefighting foam to food packaging, are shaping up to be one of the most urgent emerging risks facing the insurance industry. Like asbestos, PFAS exposures are widespread, long-tailed, and increasingly litigated. And all the while, many insureds don’t even realize they’re at risk.
By Justin Foa
We’ve been closely monitoring this trend. In Alera’s 2025 Property & Casualty Market Outlook, environmental liability was flagged as a key watch area, particularly as regulatory scrutiny increases and PFAS-related litigation spreads beyond traditional sectors.
Why the PFAS Risk Is Accelerating
Litigation around PFAS is gaining traction, especially for companies that historically used or produced firefighting
foam or industrial coatings.
In June 2023, several chemical manufacturers reached multibillion-dollar settlements with U.S. water utilities over contamination claims, including 3M’s $10.3 billion settlement to resolve allegations of PFAS pollution in public water systems. And this is just one instance. Praedicat predicts that PFAS could become an $80 billion issue for both insurers and insureds, with a 1% chance that the total expense could exceed $200 billion.
‘PFAS
liability is prompting underwriters to re-examine how they approach
pollution exclusions and Environmental Impairment Liability policies.’
The U.S. Environmental Protection Agency is also cracking down. In 2024, the EPA finalized the first national drinking water standards for six PFAS chemicals, a move expected to increase monitoring requirements and potential cleanup costs
for both public and private entities.
Who’s Most at Risk?
While much of the early attention focused on chemical producers and water systems, the web of PFAS exposure now touches a broad range of industries—and often in ways companies haven’t yet accounted for.
Industries with elevated PFAS exposure risk include:
• Firefighting services (due to legacy use of aqueous film-forming foam)
• Airports, military facilities, and fuel storage sites
• Manufacturers of textiles, nonstick cookware, and consumer packaging
• Real estate and construction firms with brownfield or legacy site exposure
• Waste management and wastewater treatment facilities
Even companies that didn’t directly manufacture or handle PFAS may inherit liability through M&A activity or past property use. This is especially true for long-standing industrial sites that have
changed ownership over the years.
What Businesses Can Do Now
This is not a “wait and see” risk. Proactive steps can make a big difference in both insurability and risk management.
1. Conduct risk audits. Work with environmental consultants to assess PFAS exposure in supply chains, operations, and legacy properties.
2. Review policy language. Many general liability and umbrella policies contain pollution exclusions that may or may not address PFAS-related claims. Engage brokers early to understand coverage gaps.
3. Revisit environmental site assessments. If your business has acquired facilities through mergers or growth, revisit historical data and Phase I/II reports to understand potential liabilities.
4. Prepare for tighter underwriting. As insurers get more selective in environmental lines, businesses that can clearly document their exposure (or lack thereof) will have an edge.
What Brokers Should be Watching
PFAS liability is prompting underwriters to re-examine how they approach pollution exclusions and Environmental Impairment Liability policies. Some insurers are already introducing PFAS-specific exclusions or revising questionnaires to identify high-risk industries. For brokers, this is the time to:
• Educate clients on how PFAS may impact coverage.
• Encourage early conversations with insurers to avoid surprises at renewal.
• Help clients compile thorough risk disclosures and risk mitigation plans.
The better prepared clients are, the better their odds of securing comprehensive and affordable coverage.
Don’t Wait to Get Ahead
PFAS liability is growing fast—not just in size but in scope.
While the full financial impact is still unfolding, the regulatory signals and legal activity are clear: This is the next major environmental risk businesses and
insurers need to get ahead of.
For insureds, that means taking proactive steps to identify and address exposure before it becomes a costly claim. For brokers, it means leading those conversations early and building smart strategies that account for a changing liability landscape.
The businesses that get ahead of PFAS risk today will be the ones best positioned to protect themselves tomorrow—and brokers have a key role to play in helping them get there.
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Foa is executive vice president, national practice leader for property & casualty at Alera Group.
Idea Exchange: Agency Management
How to Prepare Your Insurance Agency for Sale — Before You Announce Your Intent
Follow these five steps to secure a smoother deal and a stronger valuation.
Selling your insurance agency is one of the most significant decisions of your career. While your eye may be set on the final prize, the real work begins long before you announce your intent to sell. From cleaning up your finances to streamlining operations and identifying potential buyers, thoughtful preparation can make all the difference in protecting your business and maximizing its value.
By Todd Henderson
disciplined and well-managed operation. If you’re not sure where to start, consider bringing in a financial advisor or consulting firm experienced in agency sales. An outside perspective can highlight your strengths, flag weaknesses, and help present your agency in the best possible light.
2. Evaluate Your Operations and Structure
Here are five essential steps to prepare your agency for sale before you go public with your plans.
1. Start with a Financial Review
The first step in preparing your agency for sale is to get your finances in order. Buyers want a clear picture of your agency, beginning with several years of clean financial statements, including profit and loss reports, balance sheets, debts, and tax returns.
Beyond the basics, you should be prepared to provide:
• Revenue by carrier and line of business
• Commission statements
• Expense reports
• Producer compensation and performance data
• Year-over-year revenue growth
• Retention rates
• Book of business analysis
This is also the time to eliminate any personal expenses that may have been running through the business and to evaluate whether marketing or carrier relationships could be streamlined. Ultimately, buyers expect your numbers to support the valuation you’re asking for, whether that’s a flat figure or a multiple. A clean, transparent set of books signals a
Buyers aren’t just purchasing your book of business; they’re investing in the systems, processes, and people that keep your agency running. The more turnkey your operation is, the more attractive it will be.
Start with the fundamentals:
• Review and update carrier contracts to ensure they are current and transferable.
• Consider consolidating business with core carrier partners to strengthen relationships and maximize contingency bonuses.
• Update HR documentation and clarify staff roles.
• Create standard operating procedures for key workflows so your team can handle day-to-day operations without heavy reliance on you.
• Ensure your AMS/CRM is up to date, with clean and transferable data.
In short, the goal is to make sure your agency can run smoothly without you, which signals stability, reduces perceived risk, and can boost your agency’s value.
3. Research the Market and Potential Buyers
Before you list your agency, it’s important to understand the broader M&A landscape and the buyers you may engage with.
Industry sources like The Big “I” (Independent Insurance Agents & Brokers of America) and Agency Equity provide benchmarks for agency valuations and
recent transaction data. Smaller agencies typically sell for 1–2× annual revenue, though strong financial performance, professional presentation, and solid preparation can push valuations higher.
For mid-sized and larger firms, buyers often shift to EBITDA-based valuations (earnings before interest, taxes, depreciation, and amortization). According to Merger & Acquisition Services, agencies earning under $2 million typically sell for 8–10× EBITDA, while those generating more than $5 million can reach 12.5–14.5×. It is equally important to evaluate the buyers themselves. Some may present attractive stock options or incentive packages, but always verify their claims and avoid over-optimistic projections. Also, consider how each buyer will treat your staff, especially if you want a buyer who will retain your employees rather than cutting or consolidating.
4. Ask the Question: What Happens After the Sale?
When you’re swept up in the excitement of selling, one of the most overlooked questions is: What happens after the sale?
Beyond the payout, think about your role, your team’s responsibilities, and the agency’s identity. Will you stay on for a transition period? How will staff be treated? Will your agency’s legacy remain intact?
If your vision and the buyer’s vision don’t align, the deal may look good on paper but unravel later. Much like a marriage, the relationship requires shared values and expectations. Don’t be afraid to walk away if the fit isn’t right. Asking tough questions up front protects your team and your reputation.
5. Get Expert Help
Selling an insurance agency is complex,
but you don’t have to navigate it alone. There are many avenues to get help, including your insurance network if you’re part of one. Networks often provide valuation tools, buyer connections, and insight into what makes a deal work. In some cases, selling within your network may even come with added benefits.
When you’re preparing to sell and seeking expert help, it’s important to retain confidentiality, as announcing your plans too early can unsettle staff, carriers, and competitors. Experienced M&A advisors, consultants, and networks can handle a lot of the heavy lifting for you—compiling loss runs, financial reports, NDAs—while keeping the process discreet.
6. A DNA Match-Up
Ultimately, when preparing to sell your agency, finding a buyer with complementary DNA is crucial. Consider the company
culture, the type of business they focus on—commercial, personal, or both—and whether the buyer is an individual or a company. Look closely at their carrier lineup and overall approach.
The best deals aren’t just the most lucrative; they’re the ones that protect your team, preserve your legacy, and ensure a smooth transition. With clean books, strong processes, and early planning, you can position your agency for a sale that feels just right—both financially and strategically—when it’s finally time to sign on the dotted line.
Henderson, CEO of Carriage Hill Insurance, has been in the insurance industry since 1994 and acquired Carriage Hill in 2019. A Morristown, Tennessee, native and Carson-Newman graduate with a B.S. in Business Economics, he is focused on expanding Carriage Hill’s eleven locations throughout the Southeast.
Idea Exchange: The Competitive Advantage
End of the Road for Traditional Insurance?
Is traditional insurance an outdated and unaffordable risk management strategy? Essentially, the answer is yes. Traditional insurance is a dying tool on many levels.
By Chris Burand
I’ll probably get a thousand readers arguing that I’m wrong, citing the industry’s continued growth. That growth hides reality because it is rate growth, which supports my point that traditional insurance is a poor tool.
Poor Risk Management Tool
I must credit this point with an email from the insurance guru Bill Wilson. His point leads to my conclusion, so I’ll begin with his point.
Insurance is a poor risk management tool, especially for property, because risk mitigation is nearly 100% possible. Risk mitigation is cheaper than insurance over the life of the property, as owned by the insured.
Property rates in many parts of the country are unaffordable. I’ve read that as many as 25% of homeowners are foregoing homeowners insurance. Yet insurance companies still do not make money on property, especially homeowners, which has a 102.5 combined ratio, per AM Best’s Aggregates & Averages, over the last 10 years, and 105 the past five years.
This awful result supports my point. The people who embrace quality property risk management have minimal risk. The only reason they would buy insurance is due to loan requirements. Maybe the remaining 75% of homeowners are adverse selection? If so, this proves my point that insurance is not the best solution and may only have a lifeline because of bank requirements.
Risk management tools are plentiful. Quality roofs that can be retrofitted to withstand 200 mph winds exist. Water leak tools and shutoff systems exist. Wildfire mitigation is widely available and
typically costs nothing but some personal labor. Retrofitting roofs to avoid flammable materials, using stucco/concrete exteriors, eliminating wood fences, and so forth eliminate significant wildfire risks. Good accounts take these actions. Virtually hailproof roofs exist (and carriers barely give a credit for them).
Risk management tools increase the value of the property. If I have good
risk management, I don’t really need insurance. And given the price of property insurance, risk management is often the better choice.
If insurance companies want to remain relevant to the better insureds, carriers had better begin reducing rates commensurate with the level of risk management applied. They had better quit blanket underwriting and charge their underwrit-
ers with thinking through risks, or at least critical thinking (this is not meant to be a snide remark but a reflection of reality).
In a line where the insurance companies cannot make money and insureds cannot afford insurance, no future exists.
Overcharging Good Risks
Insurance companies are overcharging good insureds.
Property and casualty premiums have increased 254% while GDP has increased 91% (unadjusted for inflation) and 282% adjusted for current dollars. (In other words, inflation accounts for almost twothirds of GDP growth. On a chained basis, the increase is approximately 120%.)
Inflation has totaled approximately 106% in constant terms. Insurance company combined ratios have decreased from a relatively consistent five-year running average of 105 to 109 between 1995 and 2005, to 100 between 2011 and 2024.
‘If insurance companies want to remain relevant to the better insureds, carriers had better begin reducing rates commensurate with the level of risk management applied.’
As rates increase and risk management becomes more viable, the good insureds realize they’re being overcharged. This is a little easier to measure in commercial lines because we have estimates of alternative solution value. Different studies suggest that over half of all commercial premiums are now outside the traditional market. And these are not the good accounts leaving for alternative solutions.
Any good account left in the traditional market is paying too much for insurance because the traditional market’s percentage of adverse selection is slowly increasing.
Another good method of adjusting for the camouflage of what is happening is to separate premium growth by line of business.
The one line of business that is exceptionally difficult to avoid purchasing and to find alternatives for is private passenger auto liability. In the last 10 years, private passenger auto premiums have increased by 83%, and it is, by far, the largest single line of insurance, with 37% of all premiums. Homeowners insurance has the next highest share at approximately 15%.
Other lines have grown faster. For
example, commercial auto liability has increased by 116%, but premiums are only 17% as large.
Other than the aberration caused by the COVID lockdown resulting in rebated premiums, followed by nutjob driving resulting in huge claims, combined ratios in private passenger auto are profitable at approximately 100 over the last 10 years (adjusted for the COVID factor). Carriers make plenty of money at a 100 combined ratio.
One reason for these good results—and probably with Progressive’s results (my guess with zero inside knowledge)—is the advent of quality predictive modeling (i.e., artificial intelligence). Models exist that can accurately predict who is most likely to have an accident, and possibly even predict the year. The Law of Large Numbers is dead. This means insurance is not the best tool.
Given the gulf that exists between the best private passenger auto writers’ results and the also-rans’ results, I guess that some insurers only write the right drivers, enabling them to charge more than may be required but less than what less capable companies must charge for all the adverse drivers they’re writing.
Until laws and mortgage requirements change, insurance companies benefit from a free ride. It’d be great if the law required everyone to buy my services. I have to work to convince clients that my services will benefit them.
Outside of those requirements, risk management is the better solution today. And when risk management is combined with insurance, when insurance is truly required, the client gets the best of all worlds. For agents, you get to do more good for the world, and your competition is minimal because few agents have the mental wherewithal to compete in this space.
Possibly, the best outcome is that you are less dependent on carriers’ whims, uncertainties, and illogical actions. You and your client are back in control.
Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719-4853868. E-mail: chris@burand-associates.com.
Welcome to Insurance Journal’s 2025 Premium Finance Directory, a comprehensive listing of premium finance companies able to assist agents and brokers with their clients’ financing needs. All company information listed in this directory was directly submitted to Insurance Journal. To be listed in future editions of Insurance Journal’s Premium Finance Directory, or any other directory, contact Kristine Honey at: khoney@insurancejournal.com. We hope you find this directory to be a valuable resource when searching for financing options for your clients. Feel free to send us comments and suggestions on how we might improve this directory, or for additional help, e-mail: editorial@insurancejournal.com.
The 2025 Premium Finance Directory is Sponsored By:
Agile Premium Finance
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Phone: (269) 365-6747
Email: ggriffin@agile-pf.com www.agile-pf.com
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Idea Exchange: Technology
Insurance Turns to AI as a Critical Enabler to Boost Agility
Insurance is being shaken by a trio of climate- and economy-driven challenges; severe natural disasters, inflation, and high interest rates have driven withdrawals and nonrenewals—leaving both agents and policyholders scrambling. Alongside this, the sector is also facing another layer of disruption in the form of technology and customer shifts. Huge advancements in artificial intelligence (AI) have meant that speed and precision are now baseline expectations, and the industry is seeing faster underwriting and claims processes as a result, as well as better risk scoring and fraud detection.
By Aviad Pinkovezky
However, the idea of AI as a driver of agility—the ability to rapidly scale capacity, instantly apply improvements across the organization, or adapt decision-making in real-time based on the latest data—is still a relatively new concept in insurance conversations.
Despite the fact most traditional carriers are only just beginning to explore AI in this sense—especially given how legacy systems and compliance processes can slow agility—the untapped potential for AI-driven agility to transform how insurance operates is enormous.
Big Picture Thinking
So, how is AI bringing agility into insurance operations for both agents and carriers? Looking ahead, the industry is already seeing early indicators of AI’s agility in its potential to quickly strengthen the fundamental connections between agents and carriers. Advanced analytics can help agents identify the right carrier fit for their specific needs and risk profiles, while the same technology could work bidirectionally, enabling carriers to identify and connect with agents who align with their business strategies and distribution goals. This creates more strategic, data-driven partnerships rather than relying solely on traditional relationship-building.
Beyond this, for agents, AI can make decades of industry data available for easy analysis, helping even new professionals to deliver seasoned-level insights to customers. With consulting firm-quality research and analysis available to decision-makers at every level, complex questions that traditionally took hours or days to resolve can be achieved within minutes.
For carriers, this extends to claims processing, underwriting, and employee workflow optimization, where AI has demonstrated completion rates that actually exceed human performance while delivering more consistent service across networks.
The common thread across all these applications is speed of response to change—an ability that’s becoming increasingly essential as the pace of
change accelerates across insurance, driven by volatile markets, extreme weather events, and shifting risk appetites. Where traditional processes are constrained by human resource limitations, training timelines, and system dependencies, AI provides a much more agile foundation for insurance operations.
AI-Driven Agility in Action
The most immediate and transformative impact of AI-driven agility lies in its ability to scale capacity overnight. Traditional scaling requires a months-long process of hiring, training, and waiting for new employees to become productive—a timeline that can stretch from one to six months before seeing real results. AI eliminates this bottleneck entirely. Consider phone call management, where carriers historically struggled to
‘Looking ahead, the industry is already seeing early indicators of AI’s agility in its potential to quickly strengthen the fundamental connections between agents and carriers.’
handle influx periods or expand outreach capacity. In a traditional setup, if a carrier wanted to scale up outreach or avoid missing an influx of incoming queries, they’d need to post job listings, interview, negotiate, hire, onboard, train—a lengthy process that for entry- to mid-level roles can take anywhere from one to six months before anyone is truly productive.
With AI, not only can that capacity be dialed up overnight, but experimentation is also far simpler and faster. Traditionally, testing different scripts for handling in- and outbound calls means splitting agents into groups, measuring results, deciding which approach works best, and then retraining people. If a new script or approach works better with AI, it can be applied instantly across every interaction, without the slow grind of retraining or overcoming resistance to change. That
ability to respond very quickly to business conditions, needs, and insights is the textbook definition of agility.
Market adaptation is another critical area where AI delivers real agility. When carriers shift their risk appetite or market conditions change rapidly, traditional systems rely on API updates or core system changes that can be painfully slow, inconsistent, or lacking in nuance.
AI provides remarkable flexibility here—new information from documents, marketing brochures, or support tickets can be ingested directly into the AI engine, enabling immediate updates to underwriting logic and business processes. This means insurers can respond in real-time to changing market conditions instead of being constrained by legacy system limitations.
Future Insurance Operations
Where will AI-driven agility transform future insurance operations? As it stands now, we’ll start to see AI help more agents handle the day-to-day tasks that can be a headache—routine tasks, calls, standardized processes, and keeping service consistent despite high staff turnover. AI can also fill the gaps where hiring and training have traditionally been a struggle. Carriers, too, will start to see more immediate benefits as they embrace AI by streamlining operations, improving claims processing, and ensuring more consistent service across their networks.
Looking further down the line, AI’s capabilities could have an even bigger impact.
The industry could see AI acting like a virtual sub-agent, capable of finalizing or even binding straightforward policies. A bit like self-service, but with the reassurance that a human agent is still there, making customers feel comfortable while speeding up the process.
AI could also transform the traditional quoting experience, such as comparative quoting. In this sense, AI wouldn’t just pull APIs and return quotes, deductibles, premiums, and limits—it could also provide deeper insights into the nuances of each coverage.
For example, it could draw on customer reviews, past issues, and other relevant data to give a more complete picture. In this way, it could act as a force multiplier, enabling agents to deliver richer, more informed advice to customers. Even a new agent could have decades of experience at their fingertips, helping them provide the same depth of insight as a seasoned professional.
The common thread here is there’s a much quicker way to respond to change— an ability that’s becoming increasingly essential when change itself is accelerating across insurance, whether by volatile markets, extreme weather, or shifting risk appetites.
Pinkovezky is the CEO of First Connect. Website: www.firstconnectinsurance.com.
Idea Exchange: Licensing
Practical Licensing Challenges & Solutions for Producers, Brokers, Adjusters & Other Intermediaries
Anyone in the insurance brokerage world generally knows the three magic words that require an insurance producer license: the “sale,” “solicitation,” or “negotiation” of insurance. For too many, this is the end of the equation. Most state insurance codes do not expand on what these words truly mean beyond providing general definitions derived in whole or in part from the Producer Licensing Model Act (PLMA) promulgated by the National Association of Insurance Commissioners (NAIC). As a result, the market is saturated with inconsistent treatment of licensing practices, both at the individual and entity levels. Who needs to hold a license? What licenses need to be held? These questions, and related deficiencies, are among the most common compliance gaps we identify when assisting our insurance
By Zach Lerner
intermediary clients or otherwise conducting due diligence on potential insurance producer and intermediary mergers and acquisitions.
This article strives to answer 10 questions relating to insurance intermediary licensing nuances in the insurance marketplace that we see come up in our practice.
1. Who needs to be licensed as an insurance producer?
The short answer is all individuals and entities that “sell,” “solicit,” or “negotiate” insurance need an insurance producer, broker, agent, and/or surplus lines broker license as and where applicable. This requirement generally applies to both individuals and the entities for which such individuals produce insurance and, moreover, in every state where such activities will be conducted (i.e., not just the resident state of the individual or his or her employer).
The PLMA provides broad definitions of these terms as follows:
• “Sell” means “to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company.”
• “Solicit” means “attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company.”
• “Negotiate” means “the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers.” Sounds simple enough, but where confusion can set in is when states take more specific (and sometimes differing) positions on whether discrete activities fall into one of these definitions.
2. Do states offer more specific guidance than the PLMA as to what activities
require an insurance producer, broker, or agent license?
Many do not, but some provide very granular guidance.
For example, New York has opined that solicitation is “to ask for the purpose of receiving” and “to move to action, to endeavor to obtain by asking, and implies personal petition to a particular individual to do a particular thing,” see Circular Letter 2001-5.
In California, simply disseminating an email that “mentions” a policy provision, conveys premium quotes, or otherwise requests premium or underwriting information requires an insurance producer license and, moreover, the California license number of that person must be stated in the email, see CA Notice Dated November 14, 2022.
Pennsylvania has promulgated Department Notice 2013-09 detailing certain activities that require an insurance producer license, including but not limited to initiating sales over the telephone or otherwise; collecting premiums in person at other than a recorded place of business; disseminating policy information other than requests for buyer’s guides or applications; and making or proposing to make an insurance contract.
In Virginia, under Administrative Letter 2002-9, being compensated on a commission basis requires an insurance producer license as does, among other activities, even soliciting sales on behalf of a licensed agent.
In West Virginia, under Informational Letter 202, an insurance producer license is required for, among other things, recording information on an insurance application in any manner or otherwise interviewing customers for the purpose of developing information as part of the completion of an insurance application.
The central takeaway is there are many states that deem certain activities require an insurance producer license, which the industry sometimes assumes otherwise.
3. What about insurance producer, broker, and agent licensing exceptions?
There are a number of insurance producer licensing exceptions. The most
widely-used exception is often referred to as the “Administrative Actions Exception.” This exempts a person from licensure if they are an officer, director, or employee of an insurer or insurance producer, provided that the person (i) does not receive commissions and (ii) conducts activities that are generally administrative in nature (including relating to underwriting, loss control, or certain claims activities) or where the individual acts in a special agent or agency supervisor capacity providing technical advice only.
The issue with the Administrative Actions Exception is how attractive it can be to simply characterize employees as “administrative staff” or “customer service representatives” (CSRs). In reality, however, activities must be analyzed on a case-by-case basis.
The issue with the Administrative Actions Exception is how attractive it can be to simply characterize employees as ‘administrative staff’ or ‘customer service representatives.’ In reality, however, activities must be analyzed on a caseby-case basis.
For example, the term “underwriting” means different things to different people, and being involved in the underwriting process generally (such as consulting on the generation of underwriting guidelines) is often treated differently than the actual “binding” of insurance coverage, with the latter almost universally requiring insurance producer licensure.
Insurance companies are, for the most part, exempt from insurance producer licensure, but such exemption does not always expressly extend to employees of insurance companies who are acting in an insurance production capacity. There is also the “Group Enroller Exception” to insurance producer licensing in many states, allowing for individuals to, among other things, enroll insureds into group policies and to issue related certificates.
This exception, however, does not necessarily allow individuals to discuss terms and conditions of such group plans or otherwise be paid commissions.
4. Is there a general consensus as to what requires a license, or do states differ?
While certain activities consistently require an appropriate license, some tasks are treated differently with regard to insurance producer licensing requirements between states.
Perhaps the biggest divide is seen with respect to the collection of premium. In New York, under N.Y. OGC Opinion dated March 11, 2004, the collection of premium does not require an insurance broker or agent license. By contrast, Texas treats collection of premium as a licensable activity, and some states take a middle-ground approach, such as Ohio, where a license is only required for acceptance of the “initial” premium (see Ohio Rev. Code Ann. § 3905.03(A)(9)(a)).
What can further complicate matters is that some states require money transmitter licenses to collect premium as well (although most, but not all, recognize exceptions for insurance producers who, among other criteria, contractually agree that payment of premium to them will be deemed payment to the insurer).
The collection of information is an activity treated differently among the states as well. As noted above, some states, such as West Virginia, require an insurance producer license to interview customers in order to obtain information for an application, and Texas indicates that any individual who “receives or transmits other than on a person’s own behalf an application for insurance or an insurance policy to or from the insurer” requires an insurance producer license, see Tex. Ins. Code Ann. § 4001.051.
Many states also have separate insurance “consultant” licensing requirements. Some of such jurisdictions require insurance producers to hold both an insurance producer and an insurance consultant license (see, e.g., Utah’s Bulletin 2012-3, June 20, 2012).
continued on page 46
Idea Exchange: Licensing
continued from page 45
5. Do wholesale brokers and agents really need licenses even when they do not interact with insureds?
Usually, yes, and sometimes even more licenses and registrations than retail brokers.
Conceptually, the “sale” of insurance does not require that the “sale” occur as between the selling person and the prospective policyholder but rather, per the PLMA, that an exchange of an insurance contract occurs “by any means,” which reasonably would include the exchange of a contract of insurance to a retail broker representing the insured.
Furthermore, many states require the licensing or registration of “managing general agents” (MGAs). Such a term has a technical definition under the law. In particular, under the NAIC Managing General Agents Act, an “MGA” is defined as any person who (i) manages certain insurance business for an insurer, (ii) acts as an agent for that insurer, (iii) underwrites gross written premium equal to or exceeding 5% of the insurer’s policyholder surplus in any one quarter or year, and (iv) either adjusts claims or negotiates reinsurance for such insurer.
Some states differ substantially in their definitions of an MGA.
For example, in Texas, every individual and entity that is authorized by an insurer to accept policies sold by the retail market needs a separate and distinct MGA license in addition to an insurance agent license, unless certain exceptions apply.
Accordingly, not only is a traditional insurance agent or agency license required to act as an MGA, but often additional MGA licenses, registrations, or carrier appointments are required (along with required contracts between the MGA and the insurer with specific provisions), and in each and every jurisdiction where the agent qualifies as an MGA, irrespective of the insurer’s domestic state.
6. Do the same standards apply in the excess and surplus lines markets as to surplus lines broker licensing?
Yes, with some nuance.
Let’s start with the “good” news. Most states generally allow for retail brokers to “refer” (although not necessarily actively solicit) coverage through a surplus lines broker without themselves holding surplus lines broker licenses. Moreover, unlike the admitted market, not all states license surplus lines brokerage firms and, accordingly, in such states, an entity acts by and through its designated responsible licensed producer or “DRLP.”
Otherwise, as set forth under the NAIC Nonadmitted Insurance Model Act (NIMA), any person or entity that solicits, negotiates, procures, or effectuates an insurance contract or a renewal thereof, including forwarding of applications, must hold a surplus lines broker license in the “home state” of the insured. Such terms are defined under the Nonadmitted and Reinsurance Reform Act of 2010 (NRRA), as the principal place of business or residence of the insured (unless 100% of the risk is outside of such state). The central takeaway is that an insurance producer may need to hold surplus lines broker licenses in every state where insureds reside, not simply in the broker’s “resident” state or his or her employer’s headquartered state.
7. Hold on, the surplus lines market often utilizes non-U.S. brokers. There must be some exceptions for them.
There are some narrow, limited exceptions to the rule that everyone who engages in the sale of surplus lines insurance must hold a surplus lines broker license.
For example, in New York, guidance implicitly stands for the position that if a program manager, administrator, MGU, or similar actor (i) is not physically in New York and (ii) only accepts submissions from the surplus lines broker of record rather than handling any transactions with a downstream retail producer or underlying insured, then such person is “standing in the shoes” of the surplus lines insurer and does not need to also hold a surplus lines broker license. See ELANY Bulletin No. 2014-08.
We note that this rule is not expressly codified nationwide, and we caution cli-
ents when taking this approach to surplus lines broker licensing.
8. Can I borrow or trade under my colleague’s license or my employer’s license?
The default rule is no, but some states show leniency in practice.
There have been a number of states in recent years that have subjected brokers to enforcement actions for such activities, including six-figure fines in North Carolina for individuals who sold surplus lines insurance under the DRLP’s authorization only and a seven-figure fine in New York for similar activity in the admitted market. By contrast, there are some states that have promulgated guidance allowing for limited “borrowing” of licenses, although sometimes without statutory support for such positions.
For example, in Virginia, on its State Corporation Commission website, “Individuals with a Property and Casualty license, who transact Surplus Lines business exclusively through an agency Surplus Lines Broker, are not required to hold an individual Surplus Lines Broker license.”
There are also narrow exceptions in other licensing areas.
For example, many states grant “limited lines” licenses to sell travel insurance, rental car insurance, portable electronics insurance, as well as other limited lines. Under such licensing standards, many states allow for individuals to trade under the “supervision” of a separate licensee. Moreover, in the reinsurance intermediary space, reinsurance intermediary broker and manager licenses are often granted to entities listing all individual “transactors” under such licenses.
9. I’m licensed everywhere that I (think) I should be to transact insurance. Do I really need an adjuster license as well to adjust claims for carriers?
It depends on the state. About 18 states have no “independent adjuster” licensing standards. In the remaining states, generally speaking, any person or entity that contracts for compensation with an insurer to investigate, negotiate, or settle property,
casualty, or workers’ compensation claims may need an independent adjuster license.
What do these terms mean? Just as in the insurance producer world, states have gotten into the weeds as to what activities “cross the line” and require independent adjuster licensing. As a general rule, exercising “discretionary authority” over a particular claim, as opposed to performance of strictly ministerial tasks, is often seen as the threshold activity that requires an independent adjuster license (see NY OGC Opinion No. 06-08-04).
Such standards apply to individuals and companies located outside the U.S., as well, as the test for whether a license is required relates to where the underlying claims has occurred and/or where the insured is located, not where the person performing the services resides (see NY OGC Opinion No. 2003-56).
Some states do exempt licensed insurance producers from needing to obtain independent adjuster licenses, but some of these exceptions are limited in scope, such as for claims on policies they have produced or for the admitted (rather than surplus lines) market only. Some states also exempt attorneys from adjuster licensing, but often only for activities within the
scope of their duties as an attorney or for where they are licensed.
Further, most states require a separate and distinct third-party administrator or “TPA” license to adjust accident and health or life claims, or otherwise collect premiums on such policies, and a few states require a TPA license to adjust property and casualty claims as well. Where TPA licenses are required to be held on a state-by-state basis can become a tricky question.
For example, TPA licenses may need to be held in states where premium is paid by an individual to a primary-named insured, employer, or master policyholder, even if it is that first-named insured that actually remits premium to the TPA.
10. This sounds as though everyone and their cousin needs a license, which does not seem practical. What can I do to manage compliance risk while acting responsibly and within the boundaries of the law?
For the large national brokerage firms, the administrative and financial burden of licensing up thousands of individuals is simply not practical. Accordingly, bespoke strategies need to be adopted to mitigate the licensing burden. While licenses tradi-
tionally cannot be “borrowed,” activities can be rerouted to properly licensed individuals.
For example, administrative assistants can be trained not to “cross the line” and instead re-route questions to licensed agents. Moreover, sometimes the DRLP can “batch bind” policies, although the DRLP may need to actually review such policies and perform the licensable activities rather than delegating them.
There are many other client-tailored strategies deployed in the marketplace as well. Every insurance operation is unique, and every licensing strategy requires a bespoke approach to ensure maximum regulatory compliance while considering practical realities.
Lerner chairs Troutman Pepper Locke’s Insurance Transactional + Regulatory Practice Group in the New York office and is co-editor of Troutman Pepper Locke’s Excess and Surplus Lines Law Manual. He is a corporate attorney who focuses on insurance and reinsurance regulatory and transactional matters in the U.S. and internationally. He advises clients—both insurance and non-insurance entities—on a wide range of matters, including formation, licensing, and regulatory compliance, to transactional matters like M&A, corporate, departmental, and filing matters.
Idea Exchange: Products & Services
The Future of Independent Agents: Added Client Value Through Bolt-on Services
Independent insurance agents face a crossroads. Traditional insurance products such as auto, home, renters, and even small commercial are becoming increasingly commoditized. Carriers streamline offerings to keep premiums competitive, and direct-to-consumer websites let customers compare coverage in minutes. Agents whose businesses are built solely on selling these commoditized products risk becoming obsolete.
By Grahame Cohen
Why Bolt-Ons Matter
But there is an opportunity for independent agents to save themselves: technology-enabled bolt-on insurance products. By offering value-added services that go beyond basic coverage, agents can elevate themselves from transactional sellers to trusted advisors. In doing so, they will build stronger client relationships, reduce churn, and create additional revenue streams that extend well beyond standard insurance policy commissions.
Bolt-on products are supplemental services layered onto core insurance offerings. While roadside assistance or wellness discounts are familiar aspects of this genre, the next wave of bolt-ons will be increasingly sophisticated, tech-driven, and client-specific. For insurance agents, these tools allow them to better understand client risk exposures, address holistic needs, and demonstrate ongoing value in ways online marketplaces cannot replicate. By recommending bolt-ons that address the specific risk mitigation needs of their clients, agents prove they aren’t just selling a policy; they are actively looking for ways to protect clients and their assets. That is the type of value-add that cements loyalty in an otherwise commoditized market.
NextGen Bolt-On Products
While many bolt-ons already exist, including tenant legal expense coverage, pet injury coverage, roadside programs, equipment breakdown coverage, or health and wellness initiatives, technology is driv-
ing the most exciting new opportunities to protect clients and provide additional revenue streams for agents. Here are a few forward-looking examples that highlight the potential:
• Cyber protection for individuals and families. Most small business clients are familiar with cyber liability coverage. But cyber protection as a bolt-on for individuals is an underdeveloped market. With identity theft, online scams, and ransomware affecting families as much as corporations, new tech-enabled policies are emerging that combine insurance coverage with proactive tools: credit monitoring, password management apps, and even family-friendly cybersecurity coaching. For agents, these in-demand bolt-ons bridge the gap between traditional coverage and digital-age risk while simultaneously positioning them as forward-thinking advisors on 21st-century exposures.
• Smart home and IoT risk services. As more households install smart thermo-
stats, water leak detectors and security systems, insurers are experimenting with bolt-ons that connect to these devices. These preventative programs don’t just provide claims coverage; they prevent losses before they happen. For example, a smart water monitor linked to an app can alert homeowners, and their insurer, about a leak before it floods the home. This type of bolt-on is a natural extension of the insurance promise: not just to pay for losses but to help avoid them.
• Gig economy and lifestyle-specific coverage. Another emerging category of bolt-ons tailors coverage to nontraditional work and lifestyle patterns. Consider micro-insurance that activates when a client drives for a ride-share company or rents out their home for short stays. Or think of lifestyle bolt-ons tied to travel, such as instant luggage protection or access to telemedicine while abroad, offered via mobile platforms. These on-demand, tech-enabled products give agents new ways to serve clients whose needs evolve beyond nine-to-five jobs and standard living arrangements.
Tried-and-True Add-Ons Still Matter
Legal services products like document review or mediation insurance, which is a new product we introduced in the U.S. this summer, illustrate additional value-add for agents to provide peace of mind in areas clients don’t always consider until it’s too late.
Many early-stage entrepreneurs, small businesses, and even individuals who may own a handful of rental properties often avoid seeking appropriate legal review or advice due to the associated costs.
With legal bolt-on services, individuals and small businesses get affordable access to not only AI-driven but human attorney-led legal document services, as well as the opportunity to seek advice from licensed attorneys to avoid potential costly litigation.
For agents, the key is to weave these options into a broader client conversation, positioning them as essential components of a comprehensive strategy rather than peripheral additions.
How Bolt-Ons Reinforce Agent Value
There are two primary reasons why bolt-on products should be central to the modern agent’s strategy:
1. Differentiation in a commoditized market. When clients view insurance as interchangeable, agents need new ways to stay top of mind. Offering innovative boltons sets them apart and positions them as trusted advisors who are taking a holistic approach to protect their clients beyond the basics of standard insurance policies.
2. Stronger relationships and reduced churn. Clients who rely on their agent for multiple needs, from legal assistance to cyber protection, are less likely to shop around or switch providers. This whole-of-risk approach fosters loyalty and reinforces the agent’s role as a trusted partner and the options themselves as foundational parts of a sound plan.
A Call to Action
Agents don’t have to invent these solutions themselves. Many bolt-ons already exist, and more are coming to market every year. The key is to ask carriers what they offer, request new bolt-on products where they are lacking, and proactively introduce them to clients.
In doing so, agents take ownership of their business evolution. They are no longer mere intermediaries in the
November 3, 2025
Homeowners of America Insurance Company 1400 Corporate Drive, Suite 300 Irving, TX 75038
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1 Federal Street, Suite 700, Boston, MA 02110, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
insurance transaction; they are curators of a complete suite of services that help protect clients across their personal and professional lives.
Looking Ahead
The future of independent insurance agents won’t be written by price comparisons or automated quote engines. It will be defined by their ability to provide ongoing value through technology in ways technology alone cannot replicate. Bolt-on products, whether familiar or emerging, are a critical part of that equation.
By embracing bolt-ons and the growing value they offer, agents can transform themselves into indispensable advisors and ensure their own relevance in a rapidly changing industry.
Cohen is founder and CEO of Epoq North America, a legal insurtech protecting businesses and consumers from legal and compliance risks since 1997, with services provided to more than 60 major brands and insurance carriers in the U.S., Canada, UK and Republic of Ireland. Email: grahame@epoqlegal.com. Website: www.epoq.co.
Closing Quote
Helping Customers Manage Increasing Medical Inflation
By Carmen Sharp
Medical inflation is reshaping the workers’ compensation marketplace, driving up claim costs, and challenging traditional care models. As economic pressures mount and workforce demographics shift, independent insurance agents and their customers must navigate a more complex environment, one where increases in medical expenses require smart strategies and strong partnerships with carriers.
One of today’s most pressing challenges in the workers’ comp market is the rising cost of claims. A market report from Conning reveals the average claim size has increased by 32% since 2017, driven largely by medical inflation. Understanding the forces behind this trend—and how insurance carriers are responding—can help agents deliver greater value to their clients.
Medical Inflation?Three key factors are contributing to increased medical costs.
Technological advancements. Medical innovation continues to improve care and outcomes for injured workers, but often at a significant cost. Treatments such as robotic surgeries, advanced imaging, and specialized therapies are becoming more common and more expensive. According to
the Workers’ Compensation Research Institute (WCRI), medical payments per claim increased by approximately 5% annually in most states from 2021 to 2024, largely due to rising costs for healthcare providers and facility services.
• Healthcare consolidation. As hospitals and healthcare systems continue to merge, market competition declines. This consolidation often leads to increased service utilization and gives larger systems greater leverage to negotiate higher payment rates. A WCRI study found that market consolidation has contributed to medical payment increases of 0.9% to 4.5% per claim, depending on the state and level of integration.
• An aging workforce. The demographic shift toward an older workforce is also having an impact. Older employees tend to face longer recovery times and more complex medical needs. The U.S. Bureau of Labor Statistics projects the number of workers aged 75 and older will grow by 96.5% by 2030, significantly increasing demand for healthcare services. Pre-existing conditions and slower healing rates make early intervention and personalized care plans even more critical.
Carrier Response
To navigate this shifting landscape, some insurance carriers are combining clinical expertise with advanced technology to optimize outcomes and control costs. Here’s how. Harnessing AI to manage medical costs. Artificial intelligence is transforming claims management. By analyzing billing
data in real time, AI enables carriers to identify and access the most cost-effective care options within their provider networks. This technology helps payors pinpoint the best unit cost for each type of medical care, resisting upward pricing pressure while ensuring injured workers receive quality treatment. Streamlining billing accuracy and optimizing provider selection supports better outcomes and more sustainable cost control across the lifecycle of claims.
• Investing in clinical expertise. Expert oversight is essential to optimizing medical care and recovery. Some carriers have invested in medical directors—licensed physicians who collaborate with nurse care managers and medical providers to identify and resolve barriers to recovery and re-employment. For complex claims, carriers may deploy specialized catastrophic claims teams and develop care plans that include access to centers of excellence, specialized treatment, and nationally recognized experts.
• Taking a holistic approach to claims management. Recovery from workplace injuries involves more than physical
healing. Biopsychosocial factors such as mental health, financial stress, and social support can significantly influence an injured worker’s ability to heal and return to work. The best carriers in this space are leveraging predictive analytics so they can rapidly identify and address these underlying risks. Early intervention enables claims professionals to develop personalized recovery plans, supporting more effective injury resolution and sustainable return-to-work plans.
Why It Matters
Partnering with a carrier that prioritizes enhanced claims services and proactive care management gives agents a meaningful way to differentiate their offerings. By working with carriers that are committed to delivering appropriate and high-quality care for injured workers, agents can provide greater value to their clients. This positions agents as trusted advisors, provides customers with high-quality coverage, and helps build stronger agent-customer relationships.
Sharp is senior vice president, casualty claims at The Hanover. Contact: linkedin.com/in/carmensharp/
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