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State Farm P/C Businesses Report $13B Underwriting Loss
Late last year, State Farm's chief executive broke the news that the auto giant would record the largest underwriting loss in its 100-year history for 2022. On Monday, the news became official with a ...
Berkshire Hathaway Reports First Underwriting Loss Since 2017, Drop in GEICO Staffing
Berkshire Hathaway recorded its first full-year underwriting loss since 2017—but a small one—as strong profits from reinsurance operations were almost enough to counterbalance the deteriorating ...
SVB Collapse Explained: What Caused Silicon Valley Bank’s Failure?
SVB Financial Group Inc.'s shutdown and takeover by banking regulators on Friday can be traced to the U.S. Federal Reserve raising interest rates and souring the risk appetite of investors. Here is ...
Telematics Master Class: How Progressive Offers Competitive Prices
During an investor conference last week, Progressive's leader revealed some subtle wording changes to the company's purpose and vision. Unchanged, however, are four pillars of Progressive's strategy, ...
The Math of Homeowners Deductibles
People who work in the insurance industry probably buy homeowners policies with high deductibles, an industry investor-turned-InsurTech-founder told Carrier Management ...
P/C Carriers Losing Ground to MGAs in Talent War
During a webinar about an insurance industry labor market survey last month, an industry recruiter said that insurance carriers are losing ground to managing general agents in the war for talent. "On ...
Reinsurance Recap: 2022 Results Mixed as Market Improves
Full-year 2022 financial results, reported by a handful of international groups that write reinsurance, show mixed results in a market full of challenges—ranging from inflation to the Ukraine war ...
Root Discloses SVB Exposure; Lemonade Unaffected
The impact of the Friday's shutdown of Silicon Valley Bank on the insurance industry remained as unclear as the fallout for the rest of the tech industry for most of this weekend, but two publicly ...
Liberty Mutual Tackling U.S. Personal Lines Challenges
The story of U.S. personal lines challenges impacting the results of multiline insurers was repeated for Liberty Mutual, which reported underwriting losses and waning policy growth in the segment in ...
Leadership Tips: Manage Your Managers to Avoid ‘Quiet Firing’
Some managers deal with disengaged employees head-on, discussing the problem, offering solutions and assistance, and detailing the consequences if the situation doesn't ...
Loss Reserving and Pricing in a Time of Inflation
Inflation and the threat of a recession are a reality not to be ignored. The combined effects of the Ukraine conflict and post-COVID supply chain disruption resulted in ...
If Hurricane Ian Was a Tipping Point, What Are We Tipping Toward?
As 2023 began, property insurance markets were struggling with the fallout of significant losses from Hurricane Ian in fall 2022. Ian was accompanied worldwide by 17 ...
Too Soon for ‘All Clear’ in D&O Insurance Market as Banks Fall
D&O insurers breathed a short sigh of relief when the U.S. government pledged to protect depositors of failed Silicon Valley Bank last week. But it wasn't necessarily business as usual for ...
Moody’s RMS Estimates $5B Insured Losses From Turkey Quake
The economic and insured losses from the earthquakes that hit southern Turkey on Monday, Feb. 6 continue to escalate as damage information and data keep pouring in. The catastrophe risk modeling firm ...
AM Best Downgrades SCOR Ratings
AM Best announced Thursday that it has downgraded the financial strength rating to "A" (excellent) from "A+" (superior) and the long-term issuer credit ratings to "a+" (Excellent) from "aa-" ...
How to Win Reinsurance Negotiations in a ‘Show Don’t Tell’ Hard Market
We need to talk about the cost of reinsurance.
Primary property/casualty insurance carriers and MGAs are still squeamish following the ...
Root Inc. Says CFO ‘Terminated for Cause’
About one year into his employment with Root Inc. and a week after he helped the company report fourth-quarter earnings, Chief Financial Officer Robert Bateman has been fired for violating company ...
State Farm Will Start Hiking Auto Rates, Allstate CEO Predicts
Allstate's chief executive officer said his company will likely continue pushing for auto insurance rate hikes next year, and he expects the carrier's largest mutual competitor—State Farm—to move ...
Insurance Groundhogs Have Their Day: Some Primary Prices Need to Go Higher
Sure, it's nice to know whether Spring is around the corner or more than a month away, but what about insurance market conditions? How long will a hard market last in many lines? Are insurance prices ...
Why Not Go Direct on Homeowners, Allstate CEO Asks
When Allstate's chief executive officer looks at potential growth opportunities for personal lines insurers, he sees an untapped part of the homeowners insurance market—customers that will buy home ...
Lloyd’s 2022 Underwriting Results ‘Strong’ Despite Bottom-Line Red Ink
Lloyd's reported an interim full-year 2022 loss before tax of $947.6 million (£800 million ) as a result of investment losses of approximately $3.6 billion (£3 billion). This compares to a profit ...
Swiss Re Closes $700M Alternative Capital Deal, Enabling Growth in Favorable Market
Swiss Re has closed a $700 million multi-year stop-loss transaction with funding led by J.P. Morgan.
The financing builds upon an ...
Global Reinsurers to Bear Bulk of Losses From Turkey-Syria Earthquake: Fitch
Most insurance payouts due to the earthquake that hit Turkey and Syria ultimately will be borne by global reinsurers, according to Fitch Ratings. "The vast majority of insured losses will be covered ...
You’ve Been Laid Off. Now What? Navigating InsurTech’s Workforce Transformation
Economic uncertainty, coupled with a period of transition in InsurTech, has led to a wave of layoffs for the industry. For InsurTech employees worried about potential ...
U.S. P/C Industry Underwriting Loss $20B+ Higher in 2022; Reserve Releases Fall
According to data compiled by AM Best, the U.S. property/casualty industry recorded a $26.5 billion net underwriting loss in 2022, $21.5 billion more than the $5 billion underwriting loss the rating ...
CEO Viewpoint: It’s No Longer Enough to Just Insure
The expansion of the insurance value chain to include risk mitigation has been underway for decades. But in recent years, it's been rapidly progressing toward a tipping ...
CEO Reflections: Thoughts on Long-Term Leadership and My Career
I was initially hesitant when asked to share my thoughts on leadership.
A quick Google search will yield thousands of entries—books, ...
2022 In Review: It Was Bad
The year 2022 is in the books for most U.S. property/casualty insurers as the days tick down to statutory filing deadlines. Putting the numbers together, AM Best revealed just how bad the aggregate ...
Fact vs. Fiction: ChatGPT, Large Language Models and the Power of AI
Artificial Intelligence (AI) has been a hot topic for the past 10-plus years, enabled by constantly increasing adoption of cloud technologies and modern approaches to data management. Applications of ...
The Waves of Innovation in InsurTech: Reflections From a First Wave Startup Co-Founder
The world of InsurTech has changed dramatically since 2015, when I teamed up with my MIT classmate, Rashmi Melgiri, to found CoverWallet. Our goal was to reinvent ...
‘Telematics Is a Tool’: Root CEO Details Changed Strategy for 2023; UBI Basics
As InsurTech Root focuses its attention on signing up partners for embedded insurance relationships, telematics is taking a back seat to other pricing factors. But the company launched as a ...
InsurTech Tackles Underserved Homeowners Market: Uninformed Buyers
Ian Gutterman doesn't think there's any underserved market of people who need cheap insurance.
"There's plenty of that available," says ...
Root Books Another Loss; Stays Positive on Embedded Insurance
Calling embedded insurance the "next secular trend in distribution," Root Inc. CEO Alex Timm in a letter to shareholders said the company has an advantage to scale access in the channel and become ...
Moody’s Downgrades SCOR’s Rating to A1 From Aa3 on Weakening Profits
Moody's Investors Service downgraded the Insurance Financial Strength Rating (IFSR) of SCOR SE and its key operating entities to A1 from Aa3 while at the same time ...
Birth of a Unicorn: How Branch’s Founders Turned Noes Into Yeses
Like most startups, the founders of unicorn Branch faced some early setbacks.
In a word, the process was "intense," according to Steve ...
InsurTech Perspective: Our Turn to Stand by SVB
Just before a group of big banks extended a $30 billion lifeline to First Republic Bank last Thursday, a five-year-old InsurTech offered its support to Silicon Valley Bridge Bank, the successor of ...
How Is Your Food Processed? An ‘Emerging Damage’ Risk
I am old enough to have been taught the four basic food groups in elementary school and the importance of eating some from each of the groups no matter how much I might ...
How Carriers Can Meet Strategic Goals During Inflationary Times
At the dawn of the 2020s just over three years ago, no one, including property/casualty executives, thought a pandemic would sweep the globe. The disruptions caused by ...
Why a Focus on Development Is Critical to Retaining Talent
The insurance industry's talent problems are no longer looming — they are here. While it may take many components to find a potential solution to this problem, one area ...
InsurTech Profile: AgentSync Co-Founders on the Cost of Resisting Change
Niji Sabharwal, CEO and co-founder of insurance compliance software provider AgentSync, has a message for insurers who worry InsurTech is causing too much disruption in the industry. "People often ...
Progressive Puts Targeted 96 Combined Ratio in the Books for 2022
In a report on financial results for the month of December, which was published on Tuesday, Progressive revealed that the company met its frequently stated goal of posting a 96 combined ratio again ...
Hiring Tip for Insurers: Seek Out the Curious
One of the most important things insurance companies and employees alike can do to achieve success is stay curious, experts said on this episode of The Insuring Cyber Podcast. "Make curiosity a ...
PLUS Panelists Warn Insurers Not to Get Comfortable Riding the Cyber Rollercoaster
Jeremy Gittler, practice leader and head of Cyber Americas at AXA XL, thinks of the cyber insurance industry as a rollercoaster. He says that after several years of ...
With Rate Increases Still Pending, Lemonade Is Slowing Growth in ’23
Executives of InsurTech Lemonade say they're slowing down growth in 2023, as the company waits for regulators to approve rate hikes needed to keep up with inflation. "So long as these mismatched ...
Scratched EV Battery? Your Insurer May Be Forced to Junk the Whole Car
For many electric vehicles, there is no way to repair or assess even slightly damaged battery packs after accidents, forcing insurance companies to write off cars with ...
American Family Insurance Group Underwriting Loss Triples to $1.5B in 2022
Earlier this week, American Family Insurance report a 2022 net underwriting loss of $1.5 billion in its property/casualty lines, up from an underwriting loss of $460 million in 2021. The company ...
DeSantis Turns Heads With Comment That Citizens Insurance ‘Not Solvent’; Board Approves Cat Bond
Florida Gov. Ron DeSantis raised some questions Friday when he suggested that Citizens Property Insurance Corp., the state-created insurer, has "not been solvent" and may ...
Workplace Flexibility Key in Capturing Competitive Edge
Ira Ziff recruited the perfect CFO for the job. The candidate checked all the boxes for a small-town insurer Ziff works with as president of Precision Research Group. The ...
What P/C Insurance Leaders Read; Carrier Management Classics
Ten years ago this week, Wells Media announced the launch of CarrierManagement.com. Mark Wells, executive chair of Wells Media Group, introduced the brand explaining, "There are other publications ...