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Weekly News Roundup, August 25

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In this week's news will talk about GEICO employees report 'mass' layoffs, Cyber insurance market to exceed $17bn by 2028, and much more...

More companies exit California's embattled homeowners market

Two more insurance companies are exiting California’s embattled homeowners market, according to several reports. AmGUARD Insurance and Falls Lake Insurance are set to withdraw their homeowners' insurance programs within the coming months, following a string of similar decisions by major industry players like State Farm, Allstate, and Farmers.
Both companies made their intentions known through filings submitted to state regulators last month, the San Francisco Standard reported.

GEICO employees report 'mass' layoffs

Insurance company GEICO has undergone another tranche of layoffs, employees have reported on social media.
Several members of staff at insurer GEICO have taken to LinkedIn to confirm they were part of “mass” layoffs last week.
Affected individuals appear to have come from a range of departments, including marketing, customer support, the special investigations unit, and IT.

Allstate and top insurers brace for Maui wildfire impact on finances

Property and casualty insurers with exposure to Hawaii are set to incur catastrophe losses that may negatively impact their third quarter earnings, new analysis has found.

Citi analyst Joshua Shanker said fast-moving fires that swept across Maui this month are projected to result in approximately $1.3 billion in homeowners’ losses. The only other event to surpass this total in Hawaii’s recent history is Hurricane Iniki in 1992, which resulted in insured losses of about $3 billion.

“While major hurricanes and earthquakes have historically represented the most devastating insured loss events, the Maui wildfires are another indication that wildfires, tornados and thunderstorms have increased their potential to be multi-billion-dollar events and that the concerns around catastrophe risk have spread from what had typically been a California, Florida and Gulf of Mexico focus,” said Shanker, as quoted by Seeking Alpha.

Cyber insurance market to exceed $17bn by 2028 – report

The cybersecurity insurance market is projected to experience substantial growth in the coming years, according to a new report from research and consulting firm MarketsandMarkets.

The market is expected to expand from $10.3 billion in 2023 to $17.6 billion by 2028, representing a compound annual growth rate (CAGR) of 11.4% during the forecast period.
This surge in demand for cybersecurity insurance is primarily fueled by the escalating frequency and breadth of cyber threats, including data breaches, ransomware attacks, and phishing attempts, which have prompted organizations to seek financial protection against potential losses.

QBE North America teams up with non-profit to bolster digital equity

Employees from QBE North America have teamed up with the non-profit organization Tech Goes Home to conduct a free educational webinar to promote Internet safety and bolster digital equity.
The “Be Safe Online” webinar was hosted by ten QBE technology service team members, including head of cyber consulting Jacob Thampi and head of IT operations Taleen Armen.

Founded in 2000, Tech Goes Home is dedicated to bridging the digital divide for residents hailing from historically underserved communities. It facilitates access to digital devices and network connectivity and provides training in leveraging digital resources effectively.

QBE North America has been supporting Tech Goes Home for three years. The partnership was formed through QBE Foundation.