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Weekly News Roundup, June 7

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In this week's news will talk about how Hub makes key acquisition in California, Tesla brings on former GEICO executive to slash insurance costs, and much more...

Major partnership launches earthquake insurance facility

Emerald Bay Risk Solutions has partnered with Arrowhead, a major general insurance agency in the United States, to launch a new commercial earthquake insurance facility called Arrowhead EQ DIC. This new initiative aims to provide difference in conditions (DIC) insurance policies specifically designed for medium to large businesses in earthquake-prone regions like California and the Pacific Northwest.

The Arrowhead EQ DIC facility will utilize over $250 million in capacity, made possible through long-term relationships with leading carrier partners and a focus on disciplined underwriting. The primary reinsurers supporting this facility are top-rated firms with an A- or better rating from AM Best.

Emerald Bay CEO Dave Ingrey expressed his excitement about partnering with Arrowhead for its inaugural program

Hub makes key acquisition in California

Global insurance brokerage and financial services firm Hub International Limited has acquired the assets of California-based Combined HCM – spanning Combined Benefits, Inc., Combined Commercial Insurance Services LLC, and Combined Employer Services Inc.

A full-service human capital management brokerage in Diamond Bar, Combined HCM assists clients with their HR, recruiting, payroll, benefits, and commercial insurance requirements.

Under the deal, financial terms of which were not disclosed, Combined HCM chief executive Donny Woo, vice president of payroll Jonathan Zhao, and the rest of the team will integrate into Hub Los Angeles/Orange County (LAOC).

Alliant Insurance Services acquires health insurance agency

Alliant Insurance Services has announced its acquisition of health insurance agency Health Market Solutions, LLC (HMS).

Founded in 2022, HMS is focused on direct-to-consumer Affordable Care Act (ACA) plans, which combine advanced data science and human expertise in helping consumers decide on their healthcare. The Florida-based health insurance agency has grown to serve thousands of clients in more than 20 states.

The agreement between the two firms comes as a period of rapid growth is envisioned within the ACA marketplace. For the third consecutive year, enrollment for health plans has set a record as more than 21 million people have signed up through health insurance marketplaces for 2024

Tesla brings on former GEICO executive to slash insurance costs

Tesla has brought on board a 20-year veteran executive from GEICO to attempt to tackle the high insurance premiums associated with its electric vehicles.

The automaker has been striving for years to roll out both its own insurance solutions and partnerships to combat the typically high premiums Tesla owners face. Although it recently achieved nearly half a billion in premiums, it is not a profitable venture for the car maker.

While Tesla has successfully reduced the prices of its vehicles over the past five years, ancillary costs like interest payments and insurance have remained steep. Lowering these expenses, Tesla believes, will boost demand for its cars.

Initially, Tesla launched insurance products in collaboration with established insurers. In 2019, the company introduced its own insurance offering in California, although it did not initially incorporate real-time driving data or Tesla’s safety score, which was the ultimate objective.

USI delves into the state of the P&C market heading into the mid-year

USI Insurance Services has released a mid-year update of its 2024 Commercial Property & Casualty Market Outlook, detailing recent insurance market changes and projecting trends for the remainder of the year.

In the property sector, large rate increases from 2023 have mostly leveled off. Rates are flat to up 10% for both natural catastrophe (CAT) and non-CAT property with minimal loss history and good risk quality. Reinsurance treaty renewals have returned to a more orderly process with more capacity available due to the favorable rate environment, lower losses from increased retentions on 2023 treaties, and healthy returns on capital.

USI noted that the reinsurance market is expected to stabilize, reaching a total reinsurance capital of $561 billion, slightly below the $570 billion high of 2021. This stability translates to a more predictable operating environment for the property insurance market.