North Carolina’s insurance commissioner has negotiated a 10% increase in average rates for dwelling insurance, for rental and non-owner-occupied properties, over the next two years. The North Carolina Rate Bureau, representing property insurers, last fall had filed for a 68% rate over two years. In the state’s unique ratemaking system, the bureau usually asks for a proposed level for rates, and the Department of Insurance may hold hearings and offer its own actuarial analysis. Commissioner Mike Causey said a hearing on the dwelling rate, set for July, was canceled after the two sides settled on the 5% per year increase…
Author: Awais
Marsh Risk, a business of Marsh, announced the launch of Risk Companion, the next iteration of its digital solutions suite designed to help clients effectively and efficiently manage unique risks. Risk Companion is enabled by an AI-powered analytics engine that connects Marsh Risk’s risk dataset to its actuarial models and deep subject-matter expertise. It represents a significant advance in Marsh’s use of AI to give clients a more detailed view of risk exposures and mitigation options. “As risks have become more complex, interconnected, and volatile, clients around the world need quicker access to the data, analytics, and insights that enable…
Quarterly earnings reporting may soon become optional for U.S. firms—yet the vast majority of companies are unlikely to take advantage of lighter requirements as it could hurt valuations, investors and market participants say. A plan to move from quarterly to half-year reporting was revived by President Donald Trump last year after he initially proposed it during his first administration. The U.S. Securities and Exchange Commission is expected to soon formally seek feedback and comments from the public for a proposal to remove the quarterly earnings reporting requirement. Proponents argue that it is a way to help businesses focus on longer-term…
A recent survey of insurance-linked securities (ILS) investors conducted by reinsurance broker Gallagher Re and Gallagher Securities reveals a notable rise in market appetite for 2026. The findings indicate that a clear majority of both specialist and generalist allocators intend to expand their exposure to insurance-related assets over the next two years.Furthermore, as ILS investors adopt more sophisticated strategies, data from the survey also shows that almost none currently plan to reduce their positions in the sector. In a recent article authored by Jason Bolding, global head of ILS at Gallagher Re, and Ben Lyon, CEO of Gallagher Securities UK…
NEWSWISE — The Hayward fault, part of the larger San Andreas fault system, runs 74 miles through the East Bay of the San Francisco Bay Area. The fault is overdue for an earthquake that could cause extensive damage to such a dense population zone. In a recent study, published in Seismological Research Letters, scientists at Lawrence Livermore National Laboratory (LLNL) and Lawrence Berkeley National Laboratory (LBNL) simulated earthquake scenarios on the Hayward fault and analyzed how the rupture and underground structure affect ground motion intensity along the fault. “Using high-performance computing earthquake simulations, we are interested in learning what the…
As the Iran war disrupts global flows of oil and gas and energy prices skyrocket, the Drin River, which descends through the mountains of northern Albania, is acting as a kind of shield. Swelled by winter rains and snowmelt, and dotted with hydroelectric dams built during communist times, the river’s power provides more than 90% of the Balkan country’s electricity output, helping to keep wholesale prices in check. Albania is an example of how countries with a higher renewables output have been protected from steep rises in electricity prices since the United States and Israel attacked Iran on February 28,…
Novatae Risk Group, the wholesale insurance arm of World Insurance Associates, has appointed J. Clay Kadlic (pictured above) as vice president of strategic partnerships, drafting in a veteran distribution executive at a moment when growth in the US excess and surplus (E&S) market is starting to moderate.
String of non-bank lending failures has crystallized fears about the sector’s opaque credit pipes
Executive Summary: Rapidly shifting war-risk conditions are exposing structural weaknesses in delegated authority underwriting, according to Alex Babin, CEO of Hercules Systems, who notes that many underwriters still rely on delayed, inconsistent bordereaux data. While AI is accelerating data extraction, “extracting data is not the same as verifying that it complies with binding authority terms, particularly when those terms are being tested in real time,” he writes. He believes that bridging the gap between data extraction and underwriting certainty requires a shift in approach. Here, he outlines how the market can move from retrospective reporting to real-time governance by focusing…
A California company was fined $4.4 million for misclassifying caregivers as independent contractors. The California Labor Commissioner’s Office cited Hart Placement Agency Inc., a Canoga Park based company, and its principals, Annie Ghaw and Hartmann Ghaw, for misclassifying 144 caregivers as independent contractors who were working in homes throughout Los Angeles County. An LCO investigation reportedly found that Hart Placement, operated by a mother and son team, misclassified caregivers and denied them legal protections, including accurate wage statements and paid sick leave. Of the total $4,423,450 cited, $4,266,450 is owed directly to the affected workers. From October 2022 through December…
London market insurance and reinsurance firms, including at Lloyd’s, have increased their use of alternative capital and insurance-linked securities in recent years. But while this is seen as supportive of their returns-on-equity and cycle management capabilities, it may also exacerbate rate softening AM Best warns.These additional and incremental sources of capital are adding to organically generated capital surpluses after a number of strong underwriting years in the London market, AM Best notes. In addition, new entrants and startups are bringing more capital to bear as well, while the Lloyd’s marketplace is also becoming increasingly adept at leveraging third-party capital in…
Carriers are racing to deliver on sweeping commitments as Washington tightens the screws
The Department of Justice issued an order on April 23, rescheduling state-licensed medical marijuana and Food & Drug Administration-approved cannabis products to Schedule III of the Controlled Substances Act (CSA). The order is also expected to jumpstart the stalled Drug Enforcement Administration rescheduling process for adult use marijuana, which currently remains in Schedule I. The order, therefore, narrows but does not eliminate federal prohibitions. Historical Insurer Treatment of Marijuana For years, federal illegality and Schedule I status fueled blanket exclusions, limited capacity, and encouraged a reliance on the excess and surplus market, where bespoke forms and higher premiums filled coverage…
An indictment charges six in a sophisticated theft ring that shipped stolen vehicles to countries as far as Africa, according to an announcement by the U.S. District Court in the District of Columbia. According to the indictment, at least 20 cars in the Washington metropolitan area and Pennsylvania were stolen and transported across state lines, then sold to buyers in the United States and the African nation of Ghana. Law enforcement said it continues to investigate the defendants involved in relation to the theft of more than 100 vehicles in the District of Columbia and more than 30 vehicles in…