In this week's news will talk about how Zurich and Aon announce new clean hydrogen insurance facility for
net-zero transition, Gallagher announces two deals, and much more…
net-zero transition, Gallagher announces two deals, and much more…
US property-casualty insurers rocked by huge losses
The US property/casualty (P/C) insurance sector experienced a second year of net underwriting losses exceeding $20 billion, driven by significant unprofitability in the private passenger auto and homeowners/farm owners segments, as detailed in a new AM Best report.
US personal lines segment’s underwriting loss in 2023
In 2023, the industry recorded a net underwriting loss of $21.6 billion, following a $25.8 billion loss in the prior year.
AM Best pointed to the personal lines segment as a major contributor, with a $32.8 billion underwriting loss.
Within this segment, the private passenger auto line reported an underwriting loss of nearly $17 billion, approximately half of the previous year’s loss. Conversely, the homeowners’/farm owners’ line saw net underwriting losses more than double to $16.0 billion.
US personal lines segment’s underwriting loss in 2023
In 2023, the industry recorded a net underwriting loss of $21.6 billion, following a $25.8 billion loss in the prior year.
AM Best pointed to the personal lines segment as a major contributor, with a $32.8 billion underwriting loss.
Within this segment, the private passenger auto line reported an underwriting loss of nearly $17 billion, approximately half of the previous year’s loss. Conversely, the homeowners’/farm owners’ line saw net underwriting losses more than double to $16.0 billion.
California FAIR Plan clearinghouse now covers commercial policies
As of July 1, commercial policies are eligible for the California FAIR Plan Association’s clearinghouse, a program designed to reduce the number of policies written by the state’s insurer of last resort.
Private insurers participating in the clearinghouse receive policy data, excluding policyholder contact information, to help them determine if they can offer coverage. The goal is to transfer policies into the voluntary market, thereby reducing the FAIR Plan’s significant risk exposure, according to a release from the state-backed carrier.
According to a report by AM Best, since 2019, the number of commercial policies in the FAIR Plan’s book of business has grown by 116%, while premiums from commercial accounts have increased by 301.28% since 2021, according to the carrier’s website. As of March 2023, the FAIR Plan had 9,939 commercial policies in force, totaling $83 million in written premium.
Private insurers participating in the clearinghouse receive policy data, excluding policyholder contact information, to help them determine if they can offer coverage. The goal is to transfer policies into the voluntary market, thereby reducing the FAIR Plan’s significant risk exposure, according to a release from the state-backed carrier.
According to a report by AM Best, since 2019, the number of commercial policies in the FAIR Plan’s book of business has grown by 116%, while premiums from commercial accounts have increased by 301.28% since 2021, according to the carrier’s website. As of March 2023, the FAIR Plan had 9,939 commercial policies in force, totaling $83 million in written premium.
Rhode Island's new insurance data privacy law to come into effect in 2025
Rhode Island has enacted an insurance data privacy law requiring carriers to develop and maintain a comprehensive written information security program based on a risk assessment, detailing nonpublic data safeguards.
The law, transmitted to the Rhode Island secretary of state by Gov. Dan McKee’s office on June 26 without his signature, will take effect on Jan. 1, 2025.
Under the new law, insurers must notify the insurance commissioner within three days of discovering a cybersecurity event if it requires notification to any government body, self-regulatory agency, or other supervisory body under state or federal law. Insurers must also notify the commissioner if a cyber event is likely to harm Rhode Island consumers or hinder the carrier’s ability to operate in the state.
The law, transmitted to the Rhode Island secretary of state by Gov. Dan McKee’s office on June 26 without his signature, will take effect on Jan. 1, 2025.
Under the new law, insurers must notify the insurance commissioner within three days of discovering a cybersecurity event if it requires notification to any government body, self-regulatory agency, or other supervisory body under state or federal law. Insurers must also notify the commissioner if a cyber event is likely to harm Rhode Island consumers or hinder the carrier’s ability to operate in the state.
Zurich and Aon announce new clean hydrogen insurance facility for net-zero transition
Zurich Insurance Group and Aon have introduced a new clean energy insurance facility to provide comprehensive coverage for blue and green hydrogen projects with capital expenditures up to $250 million.
As part of this new initiative, Zurich serves as the lead insurer while Aon acts as the exclusive broker. This initiative aims to support the development of clean hydrogen projects and is part of Zurich’s broader commitment to the net-zero transition through customer engagement, new services, and product innovation.
Insurance plays a critical role in facilitating the net-zero transition by offering protection and risk expertise. Clean hydrogen, seen as a promising alternative to fossil fuels, is expected to play a key role in the energy transition.
As part of this new initiative, Zurich serves as the lead insurer while Aon acts as the exclusive broker. This initiative aims to support the development of clean hydrogen projects and is part of Zurich’s broader commitment to the net-zero transition through customer engagement, new services, and product innovation.
Insurance plays a critical role in facilitating the net-zero transition by offering protection and risk expertise. Clean hydrogen, seen as a promising alternative to fossil fuels, is expected to play a key role in the energy transition.
Gallagher announces two deals
Arthur J. Gallagher & Co. has expanded its footprint with two acquisitions: Cornerstone Commercial & Personal Insurance Services in Rancho Cucamonga, California and Zayla Partners in Katy, Texas. Financial terms for both transactions were not disclosed.
Cornerstone, a retail insurance agency, caters to commercial and personal clients in San Bernardino and Riverside counties, focusing on commercial real estate, construction, and homeowners associations.
Phil Hakopian, Allison Hakopian, and their team will continue operations from their current location under Scott Firestone, who oversees Gallagher’s Southwest region retail property/casualty brokerage operations.
Cornerstone, a retail insurance agency, caters to commercial and personal clients in San Bernardino and Riverside counties, focusing on commercial real estate, construction, and homeowners associations.
Phil Hakopian, Allison Hakopian, and their team will continue operations from their current location under Scott Firestone, who oversees Gallagher’s Southwest region retail property/casualty brokerage operations.
