In this week's news will talk about how Auto insurance trends show growth potential amid elevated risk, US home insurance costs rising faster than inflation, and much more…
How cyber insurers are adapting to the new ransomware playbook
Has ransomware entered a new era? Though attacks have surged in frequency and complexity, cyber insurance professionals are noting fewer payouts and greater resilience and cyber hygiene posture among policyholders.
In this new landscape, they said, carriers are no longer just passive payers but proactive partners driving resilience through smarter underwriting, policy innovation, and incentives for best practices.
“Ransomware is always booming,” said Christa Johnson, team lead, cyber product group at Gallagher Bassett. “But now, we’re seeing more incidents, and generally, fewer payments, which I do attribute to all the insurers and companies being better with their cyber hygiene.”
In this new landscape, they said, carriers are no longer just passive payers but proactive partners driving resilience through smarter underwriting, policy innovation, and incentives for best practices.
“Ransomware is always booming,” said Christa Johnson, team lead, cyber product group at Gallagher Bassett. “But now, we’re seeing more incidents, and generally, fewer payments, which I do attribute to all the insurers and companies being better with their cyber hygiene.”
Auto insurance trends show growth potential amid elevated risk
New data reveals notable shifts in the US auto insurance landscape, marked by a surge in driving violations, evolving consumer shopping habits, and a gradual return to profitability for insurers. The 2025 LexisNexis US Auto Insurance Trends Report, released Thursday, highlights a complex market where both challenges and opportunities are emerging for carriers.
Driving violations across the nation have climbed 17% year-over-year, surpassing 2019 levels. This increase is driven by a 16% rise in major speeding violations and a 25% jump in minor speeding infractions. Distracted driving violations have seen a particularly alarming 50% increase from 2023 to 2024. Even driving under the influence (DUI) incidents rose 8%, with the age group of 66-90 experiencing the largest proportional increase, though drivers aged 26-35 still account for the highest overall DUI volume.
Despite these heightened risks, the report indicates a softening of market conditions. After a 15% rate hike in 2023, auto insurance rate increases eased to 10% year-over-year in 2024. This, coupled with a 13.6% growth in direct written premiums to $359 billion, has led to improving insurer profitability and stabilizing incurred loss ratios. Some carriers are now in a position to pursue growth strategies and even file for rate decreases, according to the report.
Driving violations across the nation have climbed 17% year-over-year, surpassing 2019 levels. This increase is driven by a 16% rise in major speeding violations and a 25% jump in minor speeding infractions. Distracted driving violations have seen a particularly alarming 50% increase from 2023 to 2024. Even driving under the influence (DUI) incidents rose 8%, with the age group of 66-90 experiencing the largest proportional increase, though drivers aged 26-35 still account for the highest overall DUI volume.
Despite these heightened risks, the report indicates a softening of market conditions. After a 15% rate hike in 2023, auto insurance rate increases eased to 10% year-over-year in 2024. This, coupled with a 13.6% growth in direct written premiums to $359 billion, has led to improving insurer profitability and stabilizing incurred loss ratios. Some carriers are now in a position to pursue growth strategies and even file for rate decreases, according to the report.
California launches probe into State Farm
California’s Insurance Commissioner Ricardo Lara has opened a formal investigation into State Farm, following growing complaints about how the insurer is managing claims linked to the devastating January wildfires near Los Angeles.
The state’s inquiry was prompted by reports from homeowners affected by the Palisades and Eaton fires, who allege the insurance giant delayed or improperly handled their claims, particularly in relation to structural damage and smoke-related contamination.
The wildfires, which ravaged large parts of Los Angeles County, destroyed more than 16,000 buildings, resulted in 30 fatalities, and displaced thousands. The events are being counted among the most financially destructive natural disasters in American history.
Lara announced the investigation Thursday, stating the review will focus on whether State Farm has adhered to California’s claims handling laws and consumer protection regulations.
The state’s inquiry was prompted by reports from homeowners affected by the Palisades and Eaton fires, who allege the insurance giant delayed or improperly handled their claims, particularly in relation to structural damage and smoke-related contamination.
The wildfires, which ravaged large parts of Los Angeles County, destroyed more than 16,000 buildings, resulted in 30 fatalities, and displaced thousands. The events are being counted among the most financially destructive natural disasters in American history.
Lara announced the investigation Thursday, stating the review will focus on whether State Farm has adhered to California’s claims handling laws and consumer protection regulations.
US home insurance costs rising faster than inflation
The average cost of claims per insured home in the United States has increased at a rate faster than inflation over the past 20 years, according to a new research brief released by the Insurance Research Council (IRC), an affiliate of The Institutes.
The study, Homeowners Insurance Affordability: Countrywide Trends and State Comparisons, attributes the rise to multiple factors, including natural disasters, legal system abuse, fraud, escalating home repair expenses, and population shifts into disaster-prone areas. The report further reveals that homeowners’ insurance costs have risen disproportionately in comparison to household incomes, leading to record-low affordability.
“From natural disasters and legal system abuse to escalating repair costs and fraud, the pressures on home insurance costs are significant, and they are driving premiums higher for consumers,” said Dale Porfilio, president of the IRC.
The IRC introduced an Affordability Index to measure the ratio of average homeowners’ insurance expenditures to median household income. In 2001, US households allocated 1.19% of their income toward homeowners’ insurance. That percentage climbed to 2.09% in 2022 and is projected to reach 2.4% by the end of 2024.
The study, Homeowners Insurance Affordability: Countrywide Trends and State Comparisons, attributes the rise to multiple factors, including natural disasters, legal system abuse, fraud, escalating home repair expenses, and population shifts into disaster-prone areas. The report further reveals that homeowners’ insurance costs have risen disproportionately in comparison to household incomes, leading to record-low affordability.
“From natural disasters and legal system abuse to escalating repair costs and fraud, the pressures on home insurance costs are significant, and they are driving premiums higher for consumers,” said Dale Porfilio, president of the IRC.
The IRC introduced an Affordability Index to measure the ratio of average homeowners’ insurance expenditures to median household income. In 2001, US households allocated 1.19% of their income toward homeowners’ insurance. That percentage climbed to 2.09% in 2022 and is projected to reach 2.4% by the end of 2024.
New Jersey bill seeks to mandate appraisal rights in auto insurance policies
New legislation introduced in the New Jersey Senate aims to empower both drivers and insurers with an enhanced tool to resolve disputes over vehicle damage claims by requiring personal auto insurance policies to include a “right to appraisal” provision.
Senate Bill 4534 would mandate that all personal automobile insurance policies issued in the state include a clause allowing either the policyholder or the insurer to appoint a “competent and disinterested” appraiser if there is disagreement over the actual cash value or extent of a loss following an auto claim. This would apply to both repairable and total losses, as well as third-party liability settlement offers.
Under the proposed bill, once one party notifies the other of its intent to invoke the appraisal provision and names its appraiser, the opposing party would have 20 calendar days to designate their own. The two appraisers would then each have 20 business days to independently assess the vehicle and determine the loss or settlement amount.
Senate Bill 4534 would mandate that all personal automobile insurance policies issued in the state include a clause allowing either the policyholder or the insurer to appoint a “competent and disinterested” appraiser if there is disagreement over the actual cash value or extent of a loss following an auto claim. This would apply to both repairable and total losses, as well as third-party liability settlement offers.
Under the proposed bill, once one party notifies the other of its intent to invoke the appraisal provision and names its appraiser, the opposing party would have 20 calendar days to designate their own. The two appraisers would then each have 20 business days to independently assess the vehicle and determine the loss or settlement amount.
