In this week's news will talk about how Auto insurers brace for cost surges as global tariffs take effect, Willis introduces $2.5 billion wildfire insurance policy, and much more…
Root, Hyundai join forces to expand auto insurance
Insurtech company Root partnered with Hyundai Capital America, the captive finance arm of Hyundai Motor Group, in a move aimed at offering data-driven, competitive auto insurance rates directly to car buyers.
The agreement extends Root’s reach in the automotive space and aligns with its ongoing strategy to scale through embedded and partnership-based distribution. Hyundai Capital America provides financing for Hyundai, Kia, and Genesis vehicles.
“This collaboration further diversifies and expands Root’s offerings across distribution channels,” said Alex Timm, Root’s co-founder and CEO. “Our partnership channel has seen new writings increase 115% year-over-year as our pipeline continues to expand across the automotive, financial services, and agent sub-channels.”
Timm emphasized that partnerships and embedded insurance remain central to Root’s customer acquisition strategy. “Building differentiated access to customers remains a core pillar of our company strategy. As the partnership channel grows, we plan to continue to eliminate friction in the purchase experience by moving partners to fully embedded experiences,” he said.
The agreement extends Root’s reach in the automotive space and aligns with its ongoing strategy to scale through embedded and partnership-based distribution. Hyundai Capital America provides financing for Hyundai, Kia, and Genesis vehicles.
“This collaboration further diversifies and expands Root’s offerings across distribution channels,” said Alex Timm, Root’s co-founder and CEO. “Our partnership channel has seen new writings increase 115% year-over-year as our pipeline continues to expand across the automotive, financial services, and agent sub-channels.”
Timm emphasized that partnerships and embedded insurance remain central to Root’s customer acquisition strategy. “Building differentiated access to customers remains a core pillar of our company strategy. As the partnership channel grows, we plan to continue to eliminate friction in the purchase experience by moving partners to fully embedded experiences,” he said.
Willis introduces $2.5 billion wildfire insurance policy
Willis, a business of WTW, and The Nature Conservancy (TNC) have introduced a $2.5 billion wildfire insurance policy designed to reduce premiums through forest management.
The policy was created for Tahoe Donner Association, a private homeowners’ association in Truckee, California, and is part of an effort to address the growing challenges in California’s insurance market.
Developed in collaboration with the Center for Law, Energy and the Environment (CLEE) at the University of California, Berkeley, the policy links wildfire mitigation practices with lower insurance pricing. It will cover 1,345 acres of Tahoe Donner’s forested and recreational land, offering a 39% reduction in premium and an 89% reduction in deductible compared with traditional policies without forest management.
The policy was created for Tahoe Donner Association, a private homeowners’ association in Truckee, California, and is part of an effort to address the growing challenges in California’s insurance market.
Developed in collaboration with the Center for Law, Energy and the Environment (CLEE) at the University of California, Berkeley, the policy links wildfire mitigation practices with lower insurance pricing. It will cover 1,345 acres of Tahoe Donner’s forested and recreational land, offering a 39% reduction in premium and an 89% reduction in deductible compared with traditional policies without forest management.
Auto insurers brace for cost surges as global tariffs take effect
US auto insurers are bracing for rate hikes as new global tariffs on imported vehicles and parts take effect. A 25% tariff on imported passenger vehicles and light trucks begins April 3, with key auto parts following on May 3.
Industry analysts warn the added costs will ripple through the supply chain and hit both repair costs and premiums.
Michel Leonard, chief economist at the Insurance Information Institute, said the tariffs will first impact auto claims as inventories shrink, pushing up costs for parts and repairs. He noted that while single-digit tariffs aim to adjust supply chains, double-digit tariffs—like these—are meant to replace them entirely.
"The idea of a product being fully from one country is outdated," Leonard said, adding that the tariffs’ targeted nature will limit their disruption compared to the pandemic-era supply shocks.
Industry analysts warn the added costs will ripple through the supply chain and hit both repair costs and premiums.
Michel Leonard, chief economist at the Insurance Information Institute, said the tariffs will first impact auto claims as inventories shrink, pushing up costs for parts and repairs. He noted that while single-digit tariffs aim to adjust supply chains, double-digit tariffs—like these—are meant to replace them entirely.
"The idea of a product being fully from one country is outdated," Leonard said, adding that the tariffs’ targeted nature will limit their disruption compared to the pandemic-era supply shocks.
Immigration crackdowns trigger insurance fallout in construction industry
With immigration crackdowns back in the spotlight, labor shortages are once again squeezing the US construction industry. A recent New York Times piece revealed how fears of deportation have kept many immigrant workers – particularly undocumented ones – off job sites.
For Stephanie Beninati, an insurance consultant who works closely with contractors and builders, the impact on risk planning is immediate and undeniable.
“[Insurance carriers] are adapting by limiting coverage,” Beninati said. “This is a huge issue – and we’ve already tried this before decades ago. It didn’t work then, and it’s not working now.”
Beninati said she’s seen seasoned business owners and clients decide to retire early rather than navigate the growing uncertainty. The domino effect? Thinner labor pools, skyrocketing construction defect claims, and tighter underwriting guidelines from insurers who are increasingly wary of high-risk builds.
For Stephanie Beninati, an insurance consultant who works closely with contractors and builders, the impact on risk planning is immediate and undeniable.
“[Insurance carriers] are adapting by limiting coverage,” Beninati said. “This is a huge issue – and we’ve already tried this before decades ago. It didn’t work then, and it’s not working now.”
Beninati said she’s seen seasoned business owners and clients decide to retire early rather than navigate the growing uncertainty. The domino effect? Thinner labor pools, skyrocketing construction defect claims, and tighter underwriting guidelines from insurers who are increasingly wary of high-risk builds.
NCRB requests increase in mobile home fire insurance rates
North Carolina mobile home fire insurance policyholders will see an average rate increase of 11% over the next two years, while mobile home casualty policies will rise by an average of 8%, following an agreement between the North Carolina Rate Bureau and the state’s Department of Insurance, according to a BestWire report.
Insurance Commissioner Mike Causey said the agreement would save mobile homeowners more than $10 million annually compared to the initial rate request from insurers.
The rate adjustments will affect approximately 148,000 policyholders. The first increase will take effect on Sept. 1, with the second set to begin on Aug. 31, 2026. Under the terms of the agreement, insurers cannot request another rate increase until Sept. 1, 2027, the insurance department said.
The settlement prevents what could have been a lengthy and detailed rate hearing, originally scheduled to begin on May 31. Such hearings are part of North Carolina’s regulatory process when insurers and the Department of Insurance cannot reach an agreement on requested rate changes.
Insurance Commissioner Mike Causey said the agreement would save mobile homeowners more than $10 million annually compared to the initial rate request from insurers.
The rate adjustments will affect approximately 148,000 policyholders. The first increase will take effect on Sept. 1, with the second set to begin on Aug. 31, 2026. Under the terms of the agreement, insurers cannot request another rate increase until Sept. 1, 2027, the insurance department said.
The settlement prevents what could have been a lengthy and detailed rate hearing, originally scheduled to begin on May 31. Such hearings are part of North Carolina’s regulatory process when insurers and the Department of Insurance cannot reach an agreement on requested rate changes.
