The wildfires, which swept through Maui on August 8, 2023, destroyed much of the historic town of Lahaina. The Hawaiian Electric Companies’ Substation 34, its warehouse and office, and transmission and distribution infrastructure in the Lahaina area were wiped out. Fire temperatures allegedly exceeded 1,800°F — more than eight times the maximum rating for the substation equipment. Experts retained by the plaintiffs concluded that returning the equipment to service could risk “arching, sparks, and wildfire.”
Author: Awais
Investors in catastrophe bonds are seeing a decline in risk premia to levels not seen since before Hurricane Ian hit Florida in 2022, as a surge in fresh capital drives down potential returns. That’s according to an analysis by reinsurer Swiss Re, which published its assessment of the state of the market for insurance-linked securities on Monday. “We have seen capital flow into the market that has resulted in spread tightening,” Andy Palmer, who oversees ILS structuring for Europe and Asia at Swiss Re, told Bloomberg News. “Looking ahead, there are sizeable amounts of maturities upcoming – approximately $11 billion…
A federal safety agency investigating an August blast at a U.S. Steel plant near Pittsburgh that left two workers dead said it found a series of incomplete, outdated or inadequate procedures and practices that “exposed” employees to the explosion, which happened as workers were flushing a gas valve. The Occupational Safety and Health Administration fined the company a total of $118,214 and issued 10 citations. The blast also injured 11 others, including contractors, according to the Chemical Safety Board, a federal agency investigating the explosion. Before the August blast, Clairton Coke Works had a history of accidents and explosions, and…
A category of insurance risk that hardly existed a little over a decade ago has morphed into a meaningful source of losses for the industry. Claims tied to SRCC — strikes, riots and civil commotion — are emerging as a growing headache for insurers as episodes of unrest increasingly lead to the destruction of property in Western democracies. Howden Re estimates that insured losses related to SRCC soared from negligible levels in 2013 to more than $8 billion between 2020 and 2024. SRCC losses are prone to huge swings between years, with single events often changing the landscape significantly. After…
The case traces back to a December 16, 2021, motor-vehicle accident in which Ashley (Thomas) Perry, insured by USAA with $50,000 per-person liability coverage, was involved in a collision that killed DeAndre Anthony Logan. On September 26, 2023, Emely Gomez, acting as next friend of Logan’s minor daughter, sent a demand to USAA for Perry’s full per-person policy limit.
Insureds cannot rely on the word of an insurance adjuster—even one hired by the insurer—to show that a homeowners’ policy covers sewage backup, a federal appeals court said in a case that underscored the sanctity of policy exclusions but also raised questions. “While we respect the unfortunate nature of events presented in this case, we may not allow (the adjuster’s) statements — while confusing and frustrating for the Coopers — [to] create coverage where none exists,” the U.S. 5th Circuit Court of Appeals wrote in Cooper vs. State Farm Fire & Casualty. The scenario could scarcely have been more disgusting…
A UK litigation funder is seeking fresh capital less than six months after it liquidated a key fund, the latest twist for a firm that’s navigated a bumpy year. Katch Investment Group is raising new money for its open-ended Katch Legal Lending Fund, targeting a 20% annual return, according to a pitch deck seen by Bloomberg News. The fund’s proceeds will be used to finance litigation including a £250 million ($341 million) lawsuit against Uber Technologies Inc. on behalf of thousands of London’s black-cab drivers. In the growing market of litigation funding, investors pay the legal costs of a lawsuit…
Listen in as “Life Kit” host Marielle Segarra and health reporter Sarah Boden untangle the red tape that can make the prior authorization process frustrating. When the doctor says you need a prescription or treatment, sometimes you need approval from your health insurance first. That’s called prior authorization. Without that sign-off, insurance won’t pay. What triggers the need for prior authorization is not fully clear. It’s another “black box” part of the health care system. You might think insurance companies mostly target expensive treatments or care approaches when a disagreement over effectiveness prompts a prior authorization review. Often that’s not…
A growing procession of tech industry leaders including Elon Musk and Tim Cook are warning about a global crisis in the making: A shortage of memory chips is beginning to hammer profits, derail corporate plans and inflate price tags on everything from laptops and smartphones to automobiles and data centers — and the crunch is only going to get worse. Since the start of 2026, Tesla Inc., Apple Inc. and a dozen other major corporations have signaled that the shortage of DRAM, or dynamic random access memory — the fundamental building block of almost all technology — will constrain production.…
While 2025 was a quieter year for the cyber insurance-linked securities (ILS) space, S&P Global Ratings emphasised that the market still remains an effective alternative capital solution that offers insurers an effective way to transfer large-scale, systemic cyber risk to the capital markets.In a recent report published by the rating agency, analysts acknowledge that ILS issuance for cyber had remained relatively subdued in 2025. “Three public cyber catastrophe bonds have been issued this year, consisting of renewals by Hannover Re, Beazley, and Chubb, with no new sponsor coming to the market. Earlier sponsors, such as Axis Capital and Swiss Re,…
The Paris public prosecutor has opened five investigations into baby milk brands distributed by Nestle, Lactalis, Danone, Babybio and La Marque en moins after contamination with toxin cereulide, it said on Friday [Feb. 13]. Cereulide, which can cause nausea and vomiting, has been detected in ingredients from a supplier in China for several infant formula makers, including Nestle, Danone and Lactalis, triggering precautionay recalls in dozens of countries, including France, and raising concerns among parents. “The Paris prosecutor’s office decided to take up the case due to the large number of complaints filed nationwide and the technical nature of the…
Artificial intelligence is becoming a core competency for insurers that want to stay competitive in the face of geopolitical volatility, shifting claims patterns, persistent cost pressures and rising customer expectations. But to unlock AI’s full potential, carriers need to first navigate shifting workforce dynamics, modernize outdated legacy systems and overcome their tech-scoping problem, said panelists during a recent webinar from Federato. Unlike other technology trends like cloud or mobile that really only transform one area, AI is “about fundamentally rethinking business models and creating new opportunities, and it affects everything across the value chain,” said Mark Breading, partner at ReSource…
Through the first 10 months of 2025, the value of construction put in place totaled $1.825 trillion, down from $1.851 trillion in the same period of 2024. Residential construction accounted for $779 billion, compared with $798 billion a year earlier, while nonresidential spending was $1.046 trillion, down from $1.054 trillion. Dodge Construction Network is forecasting total construction starts to decline by about 0.4% in 2026.
A jury in Pennsylvania state court on Friday awarded $250,000 to the family of a woman who sued Johnson & Johnson alleging its talc-based baby powder was to blame for her ovarian cancer. The jury in the Philadelphia Court of Common Pleas sided with family members of Gayle Emerson, who claimed that Johnson & Johnson knew for years its talc-based products were dangerous but failed to warn consumers. Jurors awarded Emerson’s family $50,000 in compensatory damages and $200,000 in punitive damages. In a statement, Erik Haas, J&J’s worldwide vice president of litigation, said the company plans to appeal. “This token…