In this week's news will talk about how Ohio proposes stricter licensing rules for insurance agents and businesses, Allstate expects $1.17B in catastrophe losses for first two months of 2025, and much more…
Montana bill to redirect insurance tax to property
Property tax is always an emotive topic with voters – which is why Montana’s legislators are looking to divert funds from the insurance sector – into a vote winner.
In the move which is poised to reshape fiscal flows in Montana's insurance landscape, state lawmakers have introduced a bill that would redirect a significant portion of insurance tax revenue toward property tax relief efforts, raising questions about its broader impact on the insurance sector.
The bill, known formally as LC 4443, mandates that at the end of each fiscal year, $10 million collected under existing insurance premium tax provisions (specifically, Section 33-2-705 of Montana law) be transferred to a newly designated State Property Tax Assistance Account. This shift marks a notable redirection of funds that have historically supported insurance regulatory functions and other state general fund priorities.
In the move which is poised to reshape fiscal flows in Montana's insurance landscape, state lawmakers have introduced a bill that would redirect a significant portion of insurance tax revenue toward property tax relief efforts, raising questions about its broader impact on the insurance sector.
The bill, known formally as LC 4443, mandates that at the end of each fiscal year, $10 million collected under existing insurance premium tax provisions (specifically, Section 33-2-705 of Montana law) be transferred to a newly designated State Property Tax Assistance Account. This shift marks a notable redirection of funds that have historically supported insurance regulatory functions and other state general fund priorities.
Ohio proposes stricter licensing rules for insurance agents and businesses
The Ohio Department of Insurance has unveiled sweeping revisions to its licensing rules for insurance agents and business entities, tightening regulations on naming practices, license renewals and agent appointments.
Under the proposed rule, designated 3901-5-099(7), business entities applying for licensure in Ohio must use their legal name as registered with the Ohio Secretary of State. The superintendent of insurance would have the authority to reject names that are too similar to those of existing businesses or that could mislead the public - a measure intended to prevent consumer confusion.
The proposal outlines specific conditions under which non-resident insurance business entities - firms based outside Ohio - may obtain licenses to operate within the state. These businesses would be required to:
Under the proposed rule, designated 3901-5-099(7), business entities applying for licensure in Ohio must use their legal name as registered with the Ohio Secretary of State. The superintendent of insurance would have the authority to reject names that are too similar to those of existing businesses or that could mislead the public - a measure intended to prevent consumer confusion.
The proposal outlines specific conditions under which non-resident insurance business entities - firms based outside Ohio - may obtain licenses to operate within the state. These businesses would be required to:
Allstate expects $1.17B in catastrophe losses for first two months of 2025
Allstate Corp. reported an estimated $1.17 billion in pretax catastrophe losses for the first two months of 2025, with the majority stemming from the January wildfires that swept through Los Angeles, according to an AM Best report.
The wildfires, fueled by strong Santa Ana winds and prolonged dry conditions, led to widespread destruction across multiple neighborhoods, damaging thousands of homes and businesses. Officials described the event as one of the most severe in recent years, prompting mass evacuations, a federal disaster declaration, and a coordinated response from state and local agencies.
The California FAIR Plan, the state’s insurer of last resort, faced a surge in claims, triggering a $1 billion special assessment on participating insurers, including Allstate. The FAIR Plan, designed to provide basic fire coverage to homeowners unable to secure insurance in the private market, has come under increasing strain as wildfire risks continue to escalate.
The wildfires, fueled by strong Santa Ana winds and prolonged dry conditions, led to widespread destruction across multiple neighborhoods, damaging thousands of homes and businesses. Officials described the event as one of the most severe in recent years, prompting mass evacuations, a federal disaster declaration, and a coordinated response from state and local agencies.
The California FAIR Plan, the state’s insurer of last resort, faced a surge in claims, triggering a $1 billion special assessment on participating insurers, including Allstate. The FAIR Plan, designed to provide basic fire coverage to homeowners unable to secure insurance in the private market, has come under increasing strain as wildfire risks continue to escalate.
P&C returns to underwriting profit in 2024
Verisk and the American Property Casualty Insurance Association (APCIA) reported that the US property and casualty (P&C) insurance industry generated an estimated $170 billion in net income for full-year 2024.
Excluding over $70 billion in capital gains realized by a single insurer, adjusted net income is estimated at $100 billion.
The industry recorded an underwriting gain of $24.8 billion for the year, reversing an underwriting loss in 2023. This marked the first full-year underwriting gain since 2020.
Verisk and APCIA attributed the turnaround primarily to premium increases aligning more closely with the risk environment.
Excluding over $70 billion in capital gains realized by a single insurer, adjusted net income is estimated at $100 billion.
The industry recorded an underwriting gain of $24.8 billion for the year, reversing an underwriting loss in 2023. This marked the first full-year underwriting gain since 2020.
Verisk and APCIA attributed the turnaround primarily to premium increases aligning more closely with the risk environment.
Proposed Florida bill could increase insurance litigation costs
A bill under consideration in the Florida Legislature would award attorney fees to the prevailing party in insurance litigation, reversing aspects of recent tort reform and raising concerns among industry groups about increased litigation costs.
Under House Bill 1551, policyholders would be considered the prevailing party if they secure a judgment exceeding the insurer’s highest good faith settlement offer. If the judgment falls below that offer, the insurer would be deemed the prevailing party.
The bill defines a judgment to include reasonable attorney fees, taxable costs, and prejudgment interest incurred by the insured at the time of the settlement offer. Settlement offers revoked before five business days pass would be considered made in bad faith.
The Personal Insurance Federation of Florida (PIFF) has raised concerns that the bill could lead to a rise in litigation and increased costs for insurers and policyholders.
Under House Bill 1551, policyholders would be considered the prevailing party if they secure a judgment exceeding the insurer’s highest good faith settlement offer. If the judgment falls below that offer, the insurer would be deemed the prevailing party.
The bill defines a judgment to include reasonable attorney fees, taxable costs, and prejudgment interest incurred by the insured at the time of the settlement offer. Settlement offers revoked before five business days pass would be considered made in bad faith.
The Personal Insurance Federation of Florida (PIFF) has raised concerns that the bill could lead to a rise in litigation and increased costs for insurers and policyholders.
