In this week's news will talk about how California to raise auto liability coverage limits in 2025, Hub expands personal insurance with Jackson Hole, and much more…
California automobile insurance policies will require higher liability coverage limits beginning Jan. 1, 2025, as provisions of a 2022 law come into effect. The adjustments mark the first change to the state’s minimum liability limits in over 56 years.
Under the new rules, the minimum limits for bodily injury or death will double. Coverage for injury or death of one person will rise to $30,000, while the limit for injury or death of all persons will increase to $60,000. Property damage coverage will triple to $15,000.
Additional increases are scheduled for 2035, with limits for bodily injury or death of one person set to increase by $20,000 and the aggregate limit by $40,000. Property damage coverage will rise by another $10,000.
The changes aim to provide California drivers with greater financial protection in the face of rising medical and repair costs, according to State Farm Mutual Automobile Insurance Co.
Hub International Limited, a global insurance brokerage and financial services firm has expanded its portfolio with the acquisition of Jackson Hole Insurance, LLC.
Based in Jackson Hole, Wyoming, Jackson Hole Insurance is an independent agency offering personal insurance solutions aimed at safeguarding high-net-worth individuals’ assets. The firm specializes in addressing the complex needs of individuals seeking to minimize risks to personal wealth.
Brent Irving, president of Hub Mountain States, considers Jackson Hole Insurance as "one of the premier personal lines agencies" in the region.
“Their knowledge and expertise in managing diverse and complex needs, particularly in high net personal lines, will benefit Hub and our clients,” said Irving.
Arthur J Gallagher & Co has signed a definitive agreement to acquire AssuredPartners, a leading US-based insurance broker, for $13.45 billion in an all-cash transaction.
J Patrick Gallagher Jr, chairman and CEO of Arthur J Gallagher & Co, highlighted the strategic benefits of the acquisition, emphasizing the compatibility between the two companies.
"We have held in high regard the fast-growing AssuredPartners franchise since its founding in 2011. AssuredPartners' entrepreneurial spirit, broad US footprint, and middle-market focus make them an ideal merger partner for Gallagher," he said.
Property and casualty (P&C) insurers providing residential property coverage in Texas will be assessed to cover a $17.6 million deficit incurred by the Texas FAIR Plan Association in 2023, according to a bulletin issued by the Texas Department of Insurance (TDI).
The assessment, requested by FAIR Plan leadership, must be paid by insurers within 30 days of receiving notice. The FAIR Plan has 40 days to report any noncompliance, and carriers that fail to meet the deadline risk suspension or revocation of their certificate of authority until the assessment is paid in full, TDI stated.
The assessments will be calculated based on each insurer’s share of net direct premiums written in Texas during the prior calendar year, relative to the total net direct premiums written statewide.
The US commercial property & casualty (P&C) insurance sector has a stable outlook for 2025, according to a Moody's report.
The outlook cites strong underwriting profitability as a key factor, supported by growing investment income, even with persistent claims inflation and decreasing rates in certain lines of business like workers' compensation and some areas of professional liability.
According to Moody's, analysts predict a slight slowdown in premium growth for 2025. They estimate a 6% increase in direct premiums written for US commercial lines in 2024, reaching approximately $511 billion, up from $481 billion in 2023. However, they anticipate this growth to moderate in 2025 due to slower inflation and real GDP growth.