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The Connected Podcast

Alan Demers and Stephen Applebaum

Co-curated by Alan Demers and Stephen Applebaum, The Connected Podcast is a daily scan of all the happenings in the world of Insurance & InsurTech News.


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  • S1 · E633
    Wednesday · 10 min

    Significant September nor’easter: Upcoming storm surge, beach erosion and power outages

    In the latest segment of The Connected Podcast, we delve into the dynamic landscape of the insurance ecosystem, exploring emerging weather events, technological advancements, and groundbreaking research insights. Tune in as we discuss how these factors are shaping the industry's evolution. The episode begins with an alert on a developing nor'easter poised to affect the Northeastern U.S., sweeping through regions from North Carolina to Maine with potential storm surges and strong winds. Simultaneously, Hurricane Polo has briefly reached Category 5 status before stabilizing at Category 4, threatening heavy rainfall and large waves along Mexico's Pacific coast and Southern California. Transitioning into the realm of technology, we highlight a pivotal S&P survey revealing widespread integration of AI across the insurance sector, enhancing customer experience, underwriting, and claims processing. Despite only a third of insurers having fully adopted AI enterprise-wide, operational efficiency gains are evident. Notably, Bevaya's InsurGPT™ model showcases exceptional accuracy in processing insurance claims due to its industry-specific development. The episode also examines critical research undertaken by the Insurance Institute for Business & Home Safety, which underscores the varying durability of asphalt shingles exposed to diverse weather conditions. Unsealing is identified as a significant risk factor for wind vulnerability, offering crucial insights for improved risk management in varied climatic zones. Reflective of industry shifts, our discussion touches upon historical and current AI narratives, referencing Hans Moravec's 1988 bold prediction on digitizing human consciousness—an ambition still beyond reach today. Despite such prophecies, AI concerns remain pressing, especially in cybersecurity, as Bill Gates recently highlighted AI's potential to aid cybercriminals and bioterrorists, deeming these urgent threats. Next, we address regulatory challenges with the Consumer Federation of America's call for a ban on price optimization. This practice unfairly adjusts premiums based on a policyholder's likelihood to pay rather than risk, impacting loyal customers with potentially unjust higher rates. Exploring shifts in reinsurance capital allocation, Fitch Ratings identifies growing interest in life and health reinsurance over property and casualty, as reinsurers seek better risk-adjusted returns. This trend, emphasized at the Rendez-Vous de Septembre in Monte Carlo, highlights the industry’s strategic maneuvering for optimal capital deployment. In another segment, we recount key takeaways from the recent ACORD Connect conference, the first in-person event since 2019. Industry leaders, such as ACORD President and CEO John Kellington, stressed the importance of collaboration in enhancing digital data exchange to support emerging AI and automation technologies. However, a survey reveals a substantial trust deficit in data quality, with only a small fraction of attendees expressing full confidence in their organization's data. The episode further delves into BriteCore’s significant innovations in AI, including the introduction of AI Copilots and an enhanced Underwriting Workbench. Their new Open Agentic Core enables secure, natural language interactions between AI and the BriteCore system, advancing operational efficiency and customer experience. We also spotlight Soteris, emerging from stealth mode with an AI-driven product supported by investors like Spider Capital, designed to boost carrier profitability. Since 2020, they’ve optimized loss ratios and processed an impressive 100 million policy submissions. Their AI tool offers a groundbreaking approach to identifying policies that unintentionally harm profitability, addressing a longstanding industry challenge. As these narratives unfold, they herald a transformative era where data integrity and AI evolve from supportive roles to lead elements, steering the insurance sector towards greater efficiency, transparency, and future preparedness. Links: Significant September nor’easter: Upcoming storm surge, beach erosion and power outages Mexico's coast bracing for impacts from major Hurricane Polo IBHS Research Reveals Critical Links in Asphalt Shingle Wind Performance After 10 Years of Aging AI operational benefits arriving before financial gains for re/insurers: S&P Bevaya Benchmark: Insurance-Trained AI Beats Frontier Models on Loss Runs, Insurance's Hardest Documents AI Apocalypse? Don't Get Distracted CFA Urges States to Follow Texas's Lead and Ban Price Optimization in Insurance Reinsurance Survey Sees P&C Lagging L&H for Capital Allocation Insurance Technology Leaders Unite Around Data, Truth, and Trust at ACORD Connect 2026 BriteCore Introduces AI Copilots, Underwriting Workbench, Soteris raises $8m seed to fix hidden P&C profit leaks

  • S1 · E632
    Tuesday · 10 min

    'Connected'

    Welcome to The Connected Podcast, your gateway to intriguing developments and events shaping the insurance ecosystem. In this episode, we delve into critical trends, from innovative financial strategies to transformative technologies and industry dynamics. Join us as we uncover the stories behind the headlines! Our discussion begins with the American Red Cross's initiatives during National Preparedness Month. With a coalition of over 170 corporations and organizations, the Red Cross is intensifying its disaster response programs as climate-related emergencies rise. Discover how these partnerships supply essential resources, ensuring quick and effective responses, and support both immediate and long-term recovery efforts. In a strategic twist, we explore Driven Brands Holdings Inc.'s financial maneuvers following their decision to decline a buyout offer from ADW Capital Management. By authorizing a $100 million stock repurchase plan, Driven Brands aims to enhance shareholder value through selective market acquisitions, showcasing flexibility in their financial planning. The conversation then turns to the revolutionary role of artificial intelligence in the insurance sector. Insurers increasingly embrace AI, with expectations for significant cost-saving and revenue-enhancing benefits by 2028. This marks a pivotal transition from pilot projects to strategic implementations, driven by AI's capacity to boost efficiency, customer service, and risk management. The spotlight shines on Nationwide's innovative approach to personal lines insurance under the leadership of Sarah Griffin. By emphasizing home maintenance and prevention, Nationwide is going beyond traditional insurance, offering home warranties and fostering customer trust. This initiative aligns with insights from the app Hint, promoting strategic home management. Adding to the tech-driven discussion, TruckerCloud's introduction of FleetFile captures our attention. FleetFile is a cutting-edge predictive crash risk score designed to reduce underwriting losses in commercial auto insurance. By utilizing existing telematics data, FleetFile provides precise risk assessments, revolutionizing underwriting for heavy-duty lines. The episode further dissects the surge in commercial trucking liability premiums, despite declining crash rates. The American Transportation Research Institute attributes this to factors such as medical cost inflation and litigation pressures, painting a complex picture of the industry's challenges beyond mere accident frequency. In an exclusive update, we unveil Mitchell's renewed enterprise licensing deal with Caliber Collision. The agreement ensures continuous access to Mitchell Cloud Estimating across numerous locations and introduces advanced software solutions for streamlined operations. This partnership underscores a strategic investment in technology to enhance service quality and growth. Our journey through the insurance industry concludes with pivotal leadership changes. The departure of David Glawe, the President and CEO of the National Insurance Crime Bureau (NICB), marks a significant transition. Recognized for his efforts in combating insurance fraud, Glawe's exit coincides with ongoing efforts to address fraudulent activities, as illustrated by a recent case in North Carolina involving two brothers facing legal consequences. Tune in to The Connected Podcast for these insights and more, as we navigate the fast-evolving insurance landscape, bringing you the stories that matter most. Links: Organizations help build resilient communities by supporting Red Cross Disaster Relief CARSTAR Parent Driven Brands Approves $100 Million Stock Buyback, Sets New Debt Target AI In Insurance Survey: Governance, Data Readines | S&P Global Ratings Global AI spend will nearly double in 2026 due to infrastructure demand | CIO Dive Building Trusted Insurance Brands: How Nationwide Delivers Tangible Value to Customers TruckerCloud Launches FleetFile, a Crash Risk Score Commercial Auto Insurers Can Apply Across Their Book Trucking Insurance Costs Rise as Legal System Abuse Takes a Toll - Triple-I® Caliber Renews Mitchell Enterprise Licensing Agreement and Deploys New Technology Solutions Across All of Its Collision Centers NICB Announces Leadership Transition ‘Door Knocker’ Roofers Caught in Farm Bureau’s Sting Sentenced to Probation, Restitution Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts

  • S1 · E631
    Monday · 9 min

    Treasury Secretary says Federal Insurance Office should stay out of state-based regulation

    In this episode of The Connected Podcast, we delve into significant developments shaping the insurance ecosystem, covering topics such as regulatory stances, corporate changes, financial performance, AI challenges, and policy reforms. Treasury Secretary Scott Bessent reaffirmed his advocacy for state-based insurance regulation, emphasizing minimal federal intervention during a House Financial Services Committee hearing. In corporate news, Warren Buffett transitioned from chairman to chairman emeritus at Berkshire Hathaway, handing over leadership to his son, Howard Buffett, with Greg Abel assuming day-to-day responsibilities. Financially, Progressive faced a challenging period with an August combined ratio of 89.3 and a 22% decline in net income, despite a 6% increase in net premiums written due to robust direct auto sales. Additionally, a RAND Corporation report in the AI sector highlighted concerns over unclear insurance coverage for AI systems, with diverse coverage approaches from insurers. In California, Insurance Commissioner Ricardo Lara proposed regulations to end the use of marital status in determining auto insurance premiums, backed by a favorable appellate court ruling to promote fairer pricing practices. The podcast also covers a legal mishap involving State Farm in California, where Attorney Jacquelene Robinson faced fines for submitting court documents with fictitious citations, underscoring the need for deep scrutiny in AI-generated content in legal settings. New Jersey saw legislative action with Assembly Bill 5494, proposed by Assemblyman Chris Tully, aiming to limit AI's role in final claims decisions across insurance sectors. The bill promotes a balanced approach, allowing initial AI assessments but ensuring human review for final decisions in line with consumer protection. On an international front, the Property and Casualty Insurance Compensation Corporation reported a spike in insurance company failures in 2025, with PACICC CEO Alister Campbell emphasizing vigilant financial oversight to prevent future insolvencies. Additionally, Luzern Risk secured $45 million in Series B funding led by Insight Partners to enhance its AI-native technology platform crucial for managing custom captive insurance programs and expanding into the alternative risk market. Orion180 Insurance's debut on Nasdaq faced a tepid market response, achieving a valuation of $1.14 billion during a period marked by AI investment concerns and Federal Reserve actions. CEO Kenneth Gregg emphasized the strategic benefits of the public offering despite challenges. Lastly, the podcast explored the financial strain of fraud within the insurance sector. A Clearspeed analysis highlighted a staggering annual cost of $45.3 billion to U.S. auto and homeowners insurance markets due to fraud, affecting policyholders' premiums. This issue calls for more adaptive risk management strategies to mitigate losses. Links: Treasury Secretary says Federal Insurance Office should stay out of state-based regulation Warren Buffett steps down as chairman of Berkshire Hathaway Progressive posts weakest combined ratio of 2026 as agent book growth continues Most carriers are silent on AI - and that silence has a cost California moves to ban auto insurance surcharges for single drivers Lawyer for State Farm fined over AI hallucination in Los Angeles lawsuit New Jersey bill targets AI-powered insurance claim denials An insurer failure is often followed by several others Insurtech company Luzern Risk raises $45m in Series B round Orion180 Insurance valued at $1.14 billion as shares fall in debut | Reuters Insurance Fraud Costs $45 Billion per Year, and Honest Policyholders Often Pick Up the Tab | Insurify

  • S1 · E630
    September 17 · 10 min

    Insurance AI market to hit $154b by 2034

    The Connected Podcast The Connected Podcast: Transformative Trends in Insurance In this episode of The Connected Podcast, our focus turns to the transformative role of artificial intelligence (AI) in the insurance industry, an area predicted to experience substantial growth. According to Fortune Business Insights, the AI insurance sector is expected to leap from $13.45 billion in 2026 to $154.39 billion by 2034. Leading the market is North America, projected to hold a 40% share by 2025, driven by the adoption of digital insurance tools and advanced analytics. The conversation also delves into AI governance within organizations, emphasizing the need to understand AI's comprehensive integration across areas like underwriting and fraud detection. This complexity is particularly significant when AI technologies are procured externally, necessitating modifications to traditional governance frameworks. In the cyber insurance sphere, AI-related risks are viewed as extensions of existing tech risks, suggesting current cyber and tech policies might suffice, although specific coverage may be needed for companies developing AI systems. Our discussion underscores a critical balance between adopting new technologies and managing legacy systems efficiently. IT leaders are challenged to deploy AI effectively to enhance customer engagement without compromising trust. As AI continues to evolve, the insurance sector must navigate pivotal decisions with the potential for transformative improvements tempered by associated challenges. In a recent segment, we spotlight key developments and challenges within the insurance landscape. Among the highlights is the shift toward artificial intelligence, with 83% of insurers ready to use AI for routine tasks, and 75% favoring industry-tailored AI models. Despite this readiness, fully AI-native operations remain uncommon, reflecting cautious industry adaptation. The episode also explores the insights of billionaire Charlie Munger, who advocates for self-insurance based on personal wealth, sparking debate on the necessity of extensive coverage. Moreover, we covered The Allstate Corporation's projected catastrophe losses of $1.43 billion for July and August, illustrating insurers' financial vulnerability to natural disasters. Corporate highlights include Root, Inc.'s recalibrated focus toward operational efficiency, earning it a 'Strong Buy' rating due to improvements in financial ratios. Additionally, we examine Texas Governor Greg Abbott's initiatives to address the 79% rise in property and casualty insurance premiums over six years, reflecting strategic efforts to ease financial pressures on families. In our latest segment, attention shifts to legislative developments within the insurance ecosystem. The introduction of the Stop Auto Fraud Act of 2026 aims to combat motor vehicle collision fraud, a legislative measure receiving bipartisan support. This proposed law aims to criminalize staged car accidents intended to defraud insurers, providing financial relief to honest drivers, especially in high-premium areas like Long Island. Finally, the podcast covers a recent JD Power study that emphasizes the crucial role of trust and seamless service in homeowner insurance. Positive customer experiences correlate with higher satisfaction and reduced shopping behavior. We also introduce Finch, an innovative full-claim intelligence platform simplifying the complex property claims landscape. By aggregating claim records for comprehensive analysis, Finch aims to streamline the claims process, reduce administrative burdens, and empower stakeholders—particularly vital amidst increasing catastrophic events. Links: Insurance AI market to hit $154b by 2034 AI Is Becoming An Insurance Board Issue Undeclared AI is becoming cyber insurance’s blind spot Navigating AI’s Mass Personalization Opportunity in Insurance Insurers Are Ready to Hand Repeatable Work to AI, Just 6% Would Trust a General-Purpose Model to Do It Billionaire Charlie Munger, Who Died at 99, Skipped Insurance on His Mansion Since He Could Just Write a Check to Rebuild — ‘All Intelligent People Do It My Way’ August 2026 Monthly Release Root: The Insurtech Has Finally Become An Insurer (NASDAQ:ROOT) | Seeking Alpha Additional action being taken to make property, casualty insurance more affordable Federal Legislation Targets Auto Insurance Fraud With Steep Penalties 2026 U.S. Home Insurance Study - JD Power Finch Launches Industry-First Platform That Uncovers What's Buried in a Property Claim Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts

  • S1 · E629
    September 15 · 11 min

    Businesses Are Using AI Faster Than They Are Managing Its Risks: Nationwide Survey

    The Connected Podcast: Navigating the Shifts in the Insurance Ecosystem Join us in this riveting episode of The Connected Podcast as the hosts dive into the dynamic world of insurance, shedding light on the sector's latest developments, challenges, and innovations. As technology like artificial intelligence accelerates, businesses face urgent calls for regulatory catch-up. A survey by Nationwide highlights a significant disconnect, with 60% of small and mid-market employees using AI tools daily, yet only a fraction of companies having formalized policies or proper training for responsible use. This technological advance, as Bobbie Goldie from Nationwide points out, is outpacing governance, bringing risks related to data handling and cybersecurity to the forefront. The insurance sector specifically, grappling with tracing decisions made by AI, now confronts increased operational costs as it works through fragmented decision-making processes. Switching gears, the podcast discusses Copart Inc.'s acquisition of ACV, a move that promises to strengthen Copart's digital platform for vehicle remarketing. The strategic acquisition aligns with their plans for technology-enhanced expansion. Listeners gain insights into evolving commercial insurance pricing trends, whereby WTW's survey reports a modest 0.5% price increase in the second quarter of 2026. Meanwhile, the U.S. surplus lines market grows by 2.8%, amidst rising competition owing to a wave of new market entrants tasked with addressing complex risks and a changing litigation landscape. This session casts a spotlight on the looming talent gap in the industry, driven by the anticipated retirement of 400,000 professionals by 2026, leaving a workforce in need of rejuvenation. The integration of AI offers a mixed blessing, promising efficiency while challenging the nurturing of future talent essential for addressing upcoming vacancies. On the corporate stage, Progressive shines for its innovative use of telematics data via the Snapshot program, leading to a 6% rise in net premiums earned and a 7% increase in policies in force in the second quarter of 2026. Furthermore, Lemonade's strategic pivot to capture profitability while exploring emerging markets like self-driving car insurance showcases their commitment to aligning with future mobility trends. The episode concludes by recognizing leadership transitions within the industry. Grange Insurance's leadership baton passes to Ryan Michel in March 2027, promising continued adaptation post John Ammendola's impactful tenure. Parallelly, Zurich U.S. announces Alex Wells as CEO, bringing a wealth of experience to captivate the market post Sierra Signorelli's departure. The Connected Podcast, presented by Alan Demers, remains your trusted audio digest for the latest in Insurance and InsurTech news, available on Apple Podcasts and Spotify. Finally, the episode explores Sprout.ai's upcoming Claims AI Readiness Test, slated for September 24th. This seven-dimension scorecard emerges as a vital tool for overcoming AI implementation barriers in claims processing, offering insights and digital resources to seamlessly usher AI into insurance operations. Tune in to catch these vital perspectives shaping the insurance industry's future! Links: Nationwide Survey: Businesses Are Using AI Faster Than They Are Managing Its Risks AI is making insurance decisions faster. Can insurers still explain them later? Copart to Acquire ACV, Expanding Position Across the Vehicle Remarketing Ecosystem Commercial Insurance Pricing Increases 4.8% in Q2 2026 CLIPS - WTW More Capacity, More Competition: What’s Next for the E&S Market? Insurance Risks Losing Expertise to Retirements Can PGR's Telematics Edge Strengthen Its Underwriting Advantage? Lemonade CFO eyes self-driving car insurance, cross-selling growth Grange Insurance CEO John Ammendola to retire | Insurance Business Alex Wells selected as Zurich U.S. Chief Executive Officer Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts Stop Guessing Why Your Claims AI Won't Scale - Take the Test

  • S1 · E628
    September 14 · 9 min

    AI could make humans extinct say researchers

    The Connected Podcast - Insurance Ecosystem Episodes The Connected Podcast: Exploring the Insurance Ecosystem In a recent segment of The Connected Podcast, we delve into the intricate world of AI advancements within the insurance industry amidst rising concerns in Washington about AI's potential risks. Beyond the sensational headlines, the pressing issue centers on emerging challenges in liability and governance as AI systems progressively develop autonomously. This evolution, transforming from simple chatbot queries to complex, autonomous AI agents, is reshaping digital infrastructure, particularly with the expansion of data centers in Silicon Valley. Shifting to the financial realm, AI's role in decision-making introduces complexities in client-advisor relationships. Advisors face the daunting task of explaining AI-influenced decisions to clients, potentially altering clients’ perceptions of technology as either a valuable ally or a frustrating hurdle. The conversation further explores potential shifts in consumer behavior as speculated by Accenture's Michael Reilly. Looking ahead, AI agents might evaluate insurers based on criteria such as claims reputation and service quality rather than merely cost, prompting insurers to highlight their true value. This evolution hints at a future where service quality could surpass price as the primary consumer consideration, heralding a new era for the insurance marketplace. In this episode, we take a closer look at Acrisure's collaboration with Palantir Technologies to launch Auris AI, a revolutionary platform designed to enhance efficiency and decision-making in the insurance sector. Auris AI leverages Palantir's Ontology framework, seamlessly unifying diverse data sources into a consolidated environment, thus elevating client intelligence and strategic growth opportunities for insurance teams through robust data management. The segment then observes a significant trend in physical-risk coverage as AI data centers adopt the self-insurance model through captives, traditionally utilized by industries like mining and oil. Michael Serricchio from Marsh illuminates how companies are harnessing captives to internally manage risks associated with AI infrastructure, signaling a transformative approach to safeguarding complex operations. Our listeners are further informed about promising developments in the reinsurance market, with reinsurers experiencing their second-best first-half financial performance in a decade. According to a report by Gallagher Re, the success is attributed to a 19.9% return on equity and a 5% increase in reinsurance capital, despite a decrease in premium volumes and reduced natural catastrophe losses. We also provide timely advice from Farmers Insurance®, alerting consumers to prepare for an anticipated strong El Niño event. With a high likelihood of severe weather, proactive measures are recommended to safeguard properties and streamline recovery processes. Lastly, the episode addresses a contentious issue involving Farmers Insurance in Los Angeles County. The company faces investigations for alleged mishandling of compensation claims related to the Eaton and Palisades fires, with accusations of delayed payments and claim denials sparking concerns of potential legal infractions. This emphasizes the critical role of insurers in maintaining fair and transparent practices during disaster recovery. In this episode of The Connected Podcast, we explore pivotal developments within the insurance industry, starting with the news of Michael Dell's DFO Management and Sequence Holdings acquiring Baldwin Insurance Group, taking it private in a deal valued at $7.7 billion. Baldwin shareholders will receive a premium of $32.50 per share, considerably higher than prior stock valuations. This acquisition is anticipated to fortify Baldwin's market position and growth as it transitions to private ownership. Moving on to industry challenges, the podcast highlights the escalating threat of seller impersonation fraud in the land title insurance sector, as reported by the American Land Title Association. With 59% of firms experiencing such fraud attempts last year—up from 28% in 2024—this issue calls for increased vigilance and robust countermeasures. Lastly, we discuss innovation in insurance claims management with the upcoming Insurance Journal's Risky Future series event, "AI Tools for FNOL & Digital Claims" Demo Day. This event aims to demonstrate how AI tools can revolutionize the First Notice of Loss and digital claims processes, enhancing efficiency, automation, and customer interactions, offering a valuable opportunity for insurance claims leaders to explore cutting-edge solutions to boost operational efficiency and fraud detection capabilities. Links: AI could make humans extinct say researchers AI Agents Are Thirsty for Power | WIRED Overcoming the AI trust gap In Bots We Trust? For Insurance? Acrisure bets on Palantir to reshape insurance workflows AI Data Centers Are on Track to Fuel ‘Explosive’ Growth in Captive Insurance Reinsurers Post Second-Best First-Half Return In A Decade As Excess Capital Mounts Farmers Insurance® Urges Preparedness as NOAA Forecasts Potentially Historic El Niño for Fall and Winter LA County opens investigation into Farmers over wildfire claims handling Dell's DFO Management and Sequence to take Baldwin private in $7.7 billion deal ALTA Study Finds Seller Impersonation Fraud Attempts More Than Double Register: AI Tools for FNOL & Digital Claims Intake ‘Demo Day’ on September 16

  • S1 · E627
    September 10 · 9 min

    How 9/11 rewired American insurance

    The Connected Podcast - Insurance Ecosystem News The Connected Podcast: Exploring News in the Insurance Ecosystem In the latest episode of The Connected Podcast, we delve into several significant developments shaping the insurance ecosystem. The recent vote by the US House of Representatives to extend the Terrorism Risk Insurance Program until 2034 marks a critical juncture for the industry, reinforcing stability and trust post-9/11. This extension highlights the ongoing necessity of safeguarding against large-scale, unforeseen events in the wake of substantial past losses. Additionally, US property and casualty insurers have demonstrated remarkable financial resilience, reporting a surge in underwriting gains to $31.7 billion in the first half of 2026. This growth, despite market challenges, is complemented by a substantial increase in policyholders' surplus, although elevated catastrophe exposure remains a concern for future risk management. The integration of AI in customer service is showcased in Mississippi with the introduction of Janie, an AI-powered assistant by the Mississippi Insurance Department. While Janie aids in navigating complex processes, the retention of human staff for personalized service illustrates a balanced approach in adopting technology. In New York, new regulatory measures focus on controlling rising auto insurance rates. Governor Kathy Hochul emphasizes transparency and consumer protection by requiring insurers to obtain prior approval for rate increases, aiming to empower consumers with better insights and accountability. Finally, the episode examines the growing role of AI in commercial insurer portfolio management. Expert Farah Ismail stresses that while AI enhances data-driven decisions, it should not replace human judgment and strategic expertise. The integration of AI should support, not substitute, disciplined analysis, ensuring sustainable profitability in a complex market landscape. In a recent segment of The Connected Podcast, the discussion focused on significant news and events shaping the insurance ecosystem, particularly through the integration of artificial intelligence and innovative partnerships. AI is dramatically changing the independent insurance channel, enabling agents to enhance their capabilities and proactively address client needs, thus improving communication and trust. Meanwhile, Agero's recent acquisition of Urgently and subsequent collaboration with MOTER Technologies is revolutionizing connected vehicle claims by facilitating quicker, data-driven assistance, reducing friction, and cutting down fraud. However, the industry faces challenges with digital fraud, as alarming trends in "digital claims instigation" surface, particularly in Florida. Todd Kozikowski, CEO of 4WARN, highlights these deceptive practices that mislead policyholders. In response to the increasing cyber threats, new players like Bloc Cyber have emerged to offer specialized cyber insurance services, bridging the gap between rising risks and adequate coverage, especially in regulated industries. Bloc Cyber's efforts focus on simplifying risk management and ensuring compliance to protect key sectors across the U.S. In a segment of The Connected Podcast focused on news and events within the insurance ecosystem, Ed Olsen and Michele Hibbert discuss notable trends in the auto casualty realm as highlighted by the Enlyte Envision Trends Report. They observe encouraging signs of stability in auto medical costs following a period of increased severity. However, they caution that maintaining this stability may prove challenging. The recent decline in allowed medical costs per claimant is positive but not indicative of a lasting trend, as it depends on evolving treatment patterns, fluctuating unit costs, and shifting regulatory requirements. Ed and Michele emphasize the importance of using data analytics to identify claims that could develop into long-term costs and the necessity for insurers to adapt to regulatory nuances across states. They also explore the need to evaluate emerging treatment technologies while balancing innovation with evidence-based cost management principles. The podcast encourages insurance professionals to listen in for deeper insights on how to sustain improvements in auto medical costs and navigate the dynamic insurance landscape effectively. Links: How 9/11 rewired American insurance US P&C underwriting gains improved in H1’26, but performance varied by line of business and geography: Verisk - Reinsurance News Insurance Commissioner announces AI assistant "Janie" to help public when filing complaints - Magnolia Tribune New state regulations for auto insurers in bid to reduce costs AI in Portfolio Management: A Tool, Not a Decision Maker Three ways AI is reshaping independent insurance agencies Agero, Through Its Urgently Acquisition, Partners with MOTER Digital Threats Are Hijacking the Insurance Claims Process Bloc Cyber Launches Specialty Cyber Insurance and The Road Ahead for Auto Medical Cost Management Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts

  • S1 · E626
    September 9 · 10 min

    Is AI to blame for finance and insurance sector job cuts?

    The Connected Podcast - News and Events in the Insurance Ecosystem The Connected Podcast: News and Events in the Insurance Ecosystem In a recent segment of The Connected Podcast, the hosts delved into the surprising August jobs report, which revealed an unexpected addition of over 160,000 jobs, despite notable losses in the finance and insurance sectors. The insurance industry alone saw an 11,000-job decline in August and 99,000 losses year-to-date, with artificial intelligence identified as a significant factor behind these reductions. Robert Hartwig, a finance professor at the University of South Carolina, compared the situation to the early internet boom, emphasizing that while AI might handle simple claims efficiently, human expertise remains crucial for complex cases. On the financial side, the U.S. property and casualty insurance industry reported a significant surge in net underwriting gain in the first half of 2026, attributed in part to the absence of catastrophic losses like those from the previous year's Los Angeles wildfires. Despite a slowdown in premium growth, the industry's policyholders’ surplus reached $1.3 trillion, bolstering insurers’ ability to address future disasters. New data from Guidewire’s HazardHub highlighted wildfire risks impacting over a million homes in California, as well as in states like Arizona, Colorado, Oregon, and Texas. The spread of wildfire exposure mirrors population growth and suburban development in wildland-urban interfaces. Notably, 98% of California's wildfire-related damages are concentrated in just 10% of the highest-risk properties. In a legal development, a federal judge dismissed a class action lawsuit against GEICO in New Jersey, centered on allegations of underpaid vehicle claims. The ruling emphasized the necessity for individual claim assessments over class certification due to diverse individual issues. In this segment of The Connected Podcast, the discussion delves into the evolving landscape of artificial intelligence in the insurance sector. A recent Accenture report highlights that while AI is already enhancing insurer operations significantly—with 81% witnessing revenue increases through improved strategies like pricing and personalization—there remains untapped potential. Despite these gains, the industry faces challenges in fully leveraging AI’s capabilities. The conversation then shifts to an analysis by Farmers Insurance® regarding wildlife-related road risks during deer season. By evaluating three years of data on animal collisions, Farmers underscores the need for increased driver awareness, particularly in rural and dusk conditions, to mitigate these prevalent risks. Attention turns to the Insurance Information Institute's new tool, the Insurance Affordability Index, which examines economic pressures on auto insurance premiums. The tool reveals that while homeowners’ insurance claims a larger budget share at 2.4% of median income, auto insurance has seen a 9% increase, occupying 1.7% of median income. This data reflects the rising cost pressures facing consumers and insurers. Lastly, the podcast touches on Orion180 Insurance's ambitious IPO plans. The Florida-based company is stepping into the public market with a valuation target of $1.68 billion, aiming to raise $340 million. This move is part of a prolific post-Labor Day IPO period, signaling Orion180’s strategic bid in a recovering market. In the latest segment of The Connected Podcast, the spotlight is on key developments in the insurance ecosystem. The American Property Casualty Insurance Association (APCIA) has endorsed the bipartisan Stop Auto Fraud Act of 2026, introduced by Reps. Laura Gillen, Troy Nehls, Josh Gottheimer, and Vince Fong. This groundbreaking legislation aims to curb auto insurance fraud by making the act of staging or fabricating motor vehicle crashes for fraudulent claims a federal crime. APCIA's Sam Whitfield emphasizes the positive impact of anti-fraud measures in certain states, which have seen reduced premiums and stronger enforcement. Additionally, the podcast highlights ITC Vegas 2026, the largest insurance innovation event themed "Predict, Prepare, Progress," taking place from September 29th to October 1st. This event will address the dynamic changes in the insurance industry fueled by climate change, technology, regulatory updates, and shifting human behaviors. With Connected sponsoring the event, insurance professionals can benefit from insights, collaboration, and special discounts. Lastly, the podcast previews the 2026 annual rankings event for top-performing property and casualty insurance companies in the U.S. Attendees will have the opportunity to learn from leading industry executives about strategies and market conditions that have influenced their success. The event promises to deliver valuable insights into the future landscape of the insurance sector. Links: Is AI to blame for finance and insurance sector job cuts? US P&C Insurers Post $31.7 Billion Underwriting Gain In First Half Of 2026 Guidewire HazardHub Finds 1M+ California Homes at Risk For Extreme Wildfires GEICO Avoids Class Action Over Totaled Vehicle Payouts in New Jersey When it comes to AI adoption most re/insurers are leaving value on the table: Accenture Looking beyond raw numbers: Farmers Insurance® reveals where animal collisions make up the biggest share of comprehensive losses New Insurance Affordability Index Lists Repair Costs Among Drivers of Premium Pressure Orion180 Insurance targets $1.7 billion valuation in US IPO as fall window starts | Reuters Insurers back new bill to make staged car crashes a federal crime ITC Vegas | Horizon of Possibilities 2026 Top P&C Insurance Company Performance Rankings |

  • S1 · E625
    September 8 · 10 min

    'Physical economy is back' as data centres become strategic infrastructure

    Welcome to The Connected Podcast, your gateway to the latest news and events reshaping the insurance ecosystem. In this episode, we delve into pivotal developments, uncovering fresh opportunities and emerging challenges. Join us as we navigate the complexities of this dynamic industry. Our journey begins with insights from Jérôme Haegeli of Swiss Re. Speaking at the 68th Rendez-Vous de Septembre, Haegeli forecasts a substantial rise in insurance opportunities, driven by the rapid expansion of data centers. These centers, characterized by their dual digital and physical nature, necessitate significant energy and infrastructure investments. With global investments in renewable and efficient energy projected to reach $3.4 trillion by 2026, the potential yield could amount to $200 billion in insurance premiums between 2026-2030. Shifting focus to the U.S., a contrasting trend unfolds as consumer sentiment declines but vehicle sales surpass expectations. Despite inflation concerns highlighted by the University of Michigan's Consumer Sentiment Index, Cox Automotive reports surprisingly strong new-vehicle sales, reflecting nuanced consumer behaviors. The U.S. auto insurance market receives attention, revealing a slowdown in insurance shopping growth. Nevertheless, many drivers actively review their policies, particularly in states like New York and New Jersey. Exploring the roots of insurance as an original subscription model, we highlight its unique value proposition in non-consumption. This poses challenges in customer engagement, with research indicating limited interaction between insurers and policyholders. Up to a third of customers experience no engagement annually, raising concerns about retention and satisfaction. A major theme is the evolving trust dynamics in the property and casualty insurance industry. We question whether growing distrust is a temporary backlash or a more entrenched sentiment, fueled by policyholder relationship complexities and societal concerns over costs, corporate influence, AI integration, and climate risk. The podcast also covers Allstate Insurance's strategic moves in California, advocating for permission from regulators to resume issuing new homeowners policies after a freeze since November 2022. This effort includes implementing a 1.4% rate increase, potentially affecting premium rates across policyholders. Artificial intelligence's integration into insurance processes is scrutinized, emphasizing "human in the loop" governance. The disparity between AI output scaling and human review capacity raises compliance and oversight concerns, particularly in AI-driven decision-making. As the industry adapts to AI advancements, insurers prepare for significant changes. By 2026, providers like Insurance Services Office and Verisk will introduce standard exclusion endorsements for AI-related errors in commercial liability policies. Some insurers are already incorporating these exclusions, prompting a shift towards innovative products like those from Lloyd’s syndicates. This evolution addresses AI-related risks and reshapes the future of risk management and policy offerings. In our final segment, the spotlight turns to the Startup World Cup, led by Pegasus Tech Ventures—a global event showcasing over 100 regional competitions and culminating in a grand finale on October 17, 2025, in Silicon Valley. A standout participant from the InsurTech America Innovation Challenge will compete, presenting groundbreaking insurance innovations tackling real-world challenges like underwriting and risk management with new technologies. The episode also highlights Tesla's newest advancement—Automatic Collision Evasion, a proactive safety feature integrated into its Full Self-Driving software. This innovation autonomously works to prevent accidents, enhancing vehicle safety even during manual driving—a strategic shift in Tesla's autonomous safety initiatives available exclusively in North America. We note a leadership transition within Markel Group Inc., with long-time Chairman Steve Markel retiring and CEO Tom Gayner stepping in as the new Chairman, alongside Michael O'Reilly as Lead Independent Director. This change signals a steady path forward for Markel Group. Join us as we continue to explore these transformative trends. The Connected Podcast, hosted by Alan Demers, is your essential resource for staying updated on the latest in the insurance and InsurTech sectors. We transform complex written content into engaging audio, aided by services like Pulse Podcasts. Tune in and stay connected! Links: 'Physical economy is back' as data centres become strategic infrastructure Consumer Sentiment Falls as Cox Automotive Reports Resilient Vehicle Sales Auto Insurance Shoppers Keep Browsing, Even as Growth Cools - Triple-I® The insurance industry is selling roadside wrong Insurance and the Growing Trust Deficit Allstate moves to reopen California home insurance market for first time in four years Why Human Audits of AI Decisions Fail How Does AI Agent Liability Insurance Actually Work? - Startup Fortune InsurTech America Innovation Challenge 2026 and Startup World Cup Tesla Introduces 'Automatic Collision Evasion' for Manual Drives - Not a Tesla App Markel Chairman Steve Markel to Retire and Will Be Succeeded by Tom Gayner Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts

  • S1 · E624
    September 3 · 10 min

    U.S. P&C Insurers Post Strong Underwriting Gains Through First Half of 2026; Line-Specific and Geographic Challenges Persist

    The Connected Podcast - Insurance Ecosystem News & Events The Connected Podcast - Exploring the Insurance Ecosystem Welcome to "The Connected Podcast," your gateway to the latest news and events shaping the U.S. insurance ecosystem. Our recent episode dives deep into the dynamic shifts, technological advancements, and strategic movements transforming the industry. We kick off with a spotlight on the significant financial gains reported by Verisk and APCIA for the U.S. property and casualty insurance sector, highlighting an impressive $31.7 billion underwriting gain as of mid-2026. Despite challenges like the Los Angeles wildfires, this marks a notable improvement from the previous year's $11.6 billion. The legislative sector sees significant action as the U.S. House passes a resolution extending the National Flood Insurance Program's authorization, a crucial move to avert potential impacts on policyholders and related sectors. Explore the contrasting approaches of Florida and Texas in the use of surveillance technology. Florida's revocation of permits for law enforcement to use license-plate readers contrasts sharply with Texas's $30 million allocation for Flock camera deployments, underscoring the ongoing debate about privacy versus security in the insurance industry. Artificial Intelligence is reshaping consumer interactions within the insurance sector, as revealed by the J.D. Power U.S. AI Insurance Experience Study. With AI increasingly influencing decision-making, about one-third of policyholders now leverage AI for tasks such as researching coverage, managing accounts, and obtaining quotes. Tatum Fish from Cytora emphasizes AI's role in enhancing workflow efficiency, liberating underwriters from repetitive tasks to enable a focus on strategic areas requiring human expertise. Additionally, Mercury Insurance's proactive home maintenance guidance warns against potential claim disputes by addressing coverage-exclusion intersections. Fraud prevention is also paramount, as Clearspeed identifies the need for trusted systems to combat sophisticated fraud, stressing the establishment of robust trust infrastructures as insurers adopt advanced, secure systems. On a global front, witness Samsung's strategic M&A actions in the insurance landscape, acquiring a leading Lloyd’s specialty insurer and a major US retirement services firm. This signals Korea's extensive cross-border deal approach, targeting international growth beyond domestic markets. The episode closes with a focus on car insurance innovations. Root Insurance's extended partnership with Carvana introduces simplicity in the insurance purchasing process by offering personalized options integrated into car sales, achieving over 200,000 policy sales within four years. Leadership transitions at American International Group (AIG) reflect the industry's growing emphasis on data analytics. Peter Zaffino's move to Palantir Technologies and John Rice's appointment as AIG's chairman highlight the vital role of technology and data in driving strategic growth and innovation. Join us on this exploration to stay connected with the evolving insurance landscape, where technology, legislation, and strategic initiatives converge to shape the future. Links: U.S. P&C Insurers Post Strong Underwriting Gains Through First Half of 2026; Line-Specific and Geographic Challenges Persist House Extends NFIP Through Dec. 11 Florida Bans Flock Cameras, License Plate Readers From State Roads Car insurance fee paid for thousands of Flock cameras in Texas AI gains influence over auto and home insurance decisions AI should handle submissions, not underwriting judgment Water damage has the highest denial rate of any homeowners claim - it matters for every client Insurance’s Verification Gap Amid Rapid AI Adoption Samsung’s insurance units seek to acquire Canopius, PFG stakes in $6.6 billion deals Root Insurance and Carvana Extend Embedded Insurance Agreement Zaffino to leave AIG, join Palantir - Business Insurance

  • S1 · E623
    September 1 · 7 min

    Cox Automotive: Parts, Repair Cost Inflation Climb as Fed Signals Possible Rate Hikes

    The Connected Podcast: Insights into the Insurance Ecosystem Welcome to the latest episode of The Connected Podcast, where we delve into the key developments shaping the insurance industry today. Designed for insurance professionals, this episode provides critical insights into recent news and events that demand attention and action. Rising Costs in Vehicle Repairs: The podcast kicks off with a focus on the surge in vehicle accessory and parts prices, which have increased by 6.6% year-over-year. This spike is affecting collision repair shops and customers alike, complicating the claims process and highlighting the financial pressures within the industry. Artificial Intelligence and Financial Stability: A significant segment is dedicated to the role of artificial intelligence. With 50% of market participants identifying AI as a substantial risk, the episode examines the implications for cyber insurance professionals, urging vigilance and adaptability in response to this growing concern. Farmers Insurance and Customer Transparency: Tune in to learn about Farmers Insurance's transparency initiatives. The "Farmers Coverage on a Page" effort is highlighted as a key step in improving customer experience and trust, simplifying interactions in the process. Integrity in Property Claims: The industry faces challenges with integrity erosion in property claims. There's an emphasized need for enhanced training to address the gap left by retiring experienced claims adjusters, aiming to prevent inflated payouts and maintain reliability in claims processing. Legal Challenges for State Farm: The podcast also covers legal issues, specifically the lawsuit filed by Los Angeles County against State Farm. Accused of underpaying claims related to the Palisades and Eaton wildfires, the discussion highlights the tension between claimants and insurers. Generative AI in Insurance: The transformative influence of generative AI in insurance is dissected, noting the skepticism that persists among claims adjusters. Despite technological advancements, concerns remain about AI overshadowing human expertise. U.S. Construction Industry Growth: As the U.S. construction industry anticipates spending surges, expected to reach $2.17 trillion by 2026, this episode discusses the potential implications for insurance professionals. The slow movement in sectors like office and hospitality is contrasted with growth in public infrastructure. Looking Ahead to ITC Vegas 2026: Finally, anticipation builds for ITC Vegas 2026, a major insurance innovation event. It promises to address key forces like climate, technology, regulation, and human behavior that are reshaping the risk landscape. Join the community as it looks to translate insights into actionable strategies amid the industry's evolving dynamics. Links: Cox Automotive: Parts, Repair Cost Inflation Climb as Fed Signals Possible Rate Hikes The Fed just doubled its AI risk warning. Here's what it means for US cyber insurers Building Trusted Insurance Brands: Less ‘Gotcha’ at Farmers The Integrity Deficit: The Promise and The Erosion L.A. County sues State Farm over its handling of wildfire claims Where is generative AI creating value in insurance today? You Know Who Really Hates AI? Insurance Claims Adjusters US Construction Firms Face Gap Between Booming Property Insurance and Punishing Casualty Rates ITC Vegas | Horizon of Possibilities

  • S1 · E622
    August 31 · 9 min

    Insurers Plan Modest Hiring Growth As Actual Job Gains Fall Short Of Forecasts

    The Connected Podcast - Episode Overview The Connected Podcast: Navigating Today's Insurance Landscape In this episode of The Connected Podcast, we delve into the evolving landscape of the insurance industry, focusing on key areas such as hiring trends, natural disaster preparedness, wildfire management, and the risks associated with AI. A recent study by The Jacobson Group and Aon reveals that nearly half of insurance companies plan to expand their workforce, though actual growth has been minimal. Nevertheless, optimism remains high as 78% of companies anticipate revenue growth. Some have reduced staff due to automation and overstaffing, emphasizing flexible work environments, with many offering hybrid models. Despite a quiet 2026 Atlantic hurricane season with no major U.S. landfalls, the threat endures. The report "A Decade of Storms" highlights that it’s not about storm quantity but the potential risk posed by landfalls. In California, a newly introduced wildfire risk management bill promises quicker victim compensation and accountability for utilities, reflecting a comprehensive crisis management approach. This episode also explores AI risk in insurance, underscoring the critical importance of human oversight to prevent errors in AI-driven systems. It suggests limiting AI authorities and emphasizes maintaining an auditable governance process, reflecting the industry's balanced approach to managing both risks and opportunities. The discussion transitions to transformative changes within the insurance ecosystem, notably in underwriting and market dynamics. As AI assumes a larger role, human underwriters shift to governance stewardship, overseeing AI-driven decisions and ensuring accuracy in areas static models may overlook. The competitive market sees private equity firms tackling operational vulnerabilities, particularly in claims and fraud. Leveraging AI technologies like computer vision and natural language processing, these firms streamline processes to achieve significant cost reductions. Another challenge is the impact of Advanced Driver Assistance Systems (ADAS) on vehicle insurance. While ADAS heightens safety, its complexity makes repairs costly, a factor highlighted by Michaela Rush from Farmers Insurance, for consumer consideration when purchasing such vehicles. The podcast also covers Aon's strategic $17 billion acquisition, aimed at expanding its influence in the U.S. middle market and the Excess & Surplus insurance sector. This move is expected to reshape competition by delivering comprehensive solutions and increased value. We explore two pivotal developments impacting the industry. Bamboo Insurance is making strides by filing for an IPO on the NYSE under "BMB." As a key player, it provides new homeowners policies in California's wildfire-prone areas using a 'capital-light' model, enhancing market distinction with strong backing from major financial institutions as bookrunners. Lastly, we examine the trend of "nuclear" verdicts, with 2025 witnessing nearly 200 verdicts of $10 million or more—a 40.7% increase from 2024. These verdicts reached $25.6 billion, with several "thermonuclear" cases exceeding $100 million, including four surpassing the billion-dollar threshold. These developments demand agility and adaptation from insurers amidst shifting risk and regulatory landscapes. Links: Insurers Plan Modest Hiring Growth As Actual Job Gains Fall Short Of Forecasts Are Quieter Hurricane Seasons an Anomaly or a Trend? ‘Compromise’ state wildfire bill pleases victims but falls short of full structural reform AI risk and the need for embedded governance Underwriting’s Next Job: Governance Steward The Private Equity Revolution in Insurance Safer Cars, Smarter Repairs: Farmers Insurance® Explains How New Car Technology May Impact Repair and Insurance Costs Aon to acquire USI to establish the premier U.S. middle-market platform Bamboo Insurance files for IPO - what it means for brokers relying on its wildfire capacity Nuclear Verdicts Go Boom, Increase 40.7% in 2025

  • S1 · E621
    August 28 · 10 min

    Aon estimates hundreds of millions in losses from wave of European severe storms

    Welcome to The Connected Podcast, where we explore the ever-evolving landscape of the insurance ecosystem. In this episode, we dive into some critical developments and emerging trends shaping the industry. Join us as we uncover impactful news and events that are setting the stage for the future of insurance. The episode begins with a significant weather event as severe convective storms have swept across Europe. These storms have resulted in substantial economic and insured losses, estimated in the hundreds of millions of euros. Between August 19 and 21, a vast weather system triggered hazardous conditions from Spain to Ukraine and Belarus. Areas from the Balearic Sea to northern Italy received a Level 3 warning due to intense winds, tornadoes, and flash flooding, heavily impacting regions in Germany, Czechia, Slovakia, Austria, Poland, and southern France. On the legal front, a class action lawsuit has been filed against Allstate by Jose Arce and Daniel Jackson. These plaintiffs allege that Allstate mismanaged rental vehicle reimbursements for collisions involving their insured drivers, with compensations reportedly falling short of covering real rental costs. Technology is also at the forefront as a new study by the Insurance Institute for Highway Safety (IIHS) reveals that phone usage involvement in car crashes is significantly underreported. The study suggests that such incidents occur up to seven times more frequently than recorded in police reports, with telematics data indicating phone use shortly before crashes in both single-vehicle and two-vehicle incidents. The integration of artificial intelligence within the insurance sector is a hot topic. The podcast discusses AI's potential in enhancing productivity and performance but also highlights the current limitations, especially in policy administration systems. A highlighted report by McKinsey points to AI's promising ability to boost efficiency across various industry tasks. In a study by JD Power, almost one-third of auto and home insurance customers are reported to be using AI tools for decision-making, with 42% purchasing policies guided by AI insights. Despite the growing trend, challenges like unfamiliarity and mistrust continue to prevent broader AI adoption. Insurers are focusing on AI-driven automation to optimize claims processing and customer service, although the technology's overall transformative potential is still being explored. Strategically, insurance companies are leveraging technology for market expansion. Notably, Holdings Inc.’s nationwide deployment of its Hippo Homeowners Insurance Program illustrates the fusion of tech-driven underwriting with traditional distribution to spur growth. Meanwhile, Marsh's introduction of Stratus, a property insurance exchange, represents a unique approach to covering digital infrastructure risks through a collaborative global market. Further analysis delves into the slim chances personal auto insurance policyholders have in receiving payouts on liability claims, highlighting an internal reflection on customer trust erosion within the P/C insurance industry. The episode also covers a troubling rise in product recalls, with Sedgwick reporting a significant increase in the number of units recalled due to changing regulations and large-scale recalls. In a heartfelt tribute, we honor George Joseph, the visionary founder of Mercury General Corporation, who passed away at 104. The podcast reflects on his legacy and how he transformed his company into a titan in the insurance industry. We conclude on a forward-looking note with a preview of an upcoming webinar featuring Sprout.ai. The webinar will focus on effectively integrating AI into insurance claims, recognizing the challenges in scaling, and evaluating operational readiness for AI adoption. Join us in this engaging episode as we navigate the dynamic insurance landscape, examining how emerging technologies and strategic innovations are reshaping the industry, influencing customer experiences, and driving future success. Links: Aon estimates hundreds of millions in losses from wave of European severe storms Allstate class action alleges company knowingly underpaid rental car costs IIHS Says Drivers Use Phones Before Crashing More Than Police Report Agentic AI Meets the Core System Nobody Wants to Touch | U.S. AI Insurance Experience Study - JD Power Insurance AI's Next Phase: Beyond Incremental Efficiency | William Blair Hippo to Expand Homeowners Insurance Footprint in Next Phase of Profitable Growth Marsh unveils $10bn property insurance exchange for digital infrastructure risks Examining Trust: It’s Not All About the Lawyers Product Units in Recalls Surge 346% in the H1 2025 as Regulatory Scrutiny Intensifies Mercury Announces the Passing of Founder and Chairman George Joseph Will Your Claims AI Project Scale or Stall? Why operational bottlenecks, not AI technology, decide what happens next

  • S1 · E620
    August 26 · 8 min

    Trump's 50% auto tariff threat adds to a cost pressure already hitting Canadian premiums

    Welcome to the latest episode of "The Connected Podcast", where we spotlight significant developments within the insurance industry and the ever-evolving InsurTech landscape. In this episode, we explore a variety of topics shaping the future of insurance, from market changes and international expansions to technological advancements and strategic partnerships. We kick off the segment by discussing the potential impact of increased tariffs announced by President Trump on Canadian auto imports, anticipated to take effect in January 2027. These tariffs are poised to escalate repair costs in Canada, leading to heightened insurance premiums and claims expenses. Industry professionals are encouraged to monitor this evolving situation closely. The episode also highlights Tokio Marine's expansive endeavors, fueled by support from Berkshire Hathaway. As the Japanese insurance behemoth considers acquisitions in Australia and Canada, targeting firms such as Suncorp, Insurance Australia Group, and Intact Financial Corporation, the landscape could witness substantial shifts in market dynamics and Tokio Marine's global influence. Delving into the realm of technology, we examine the pivotal role of artificial intelligence. This segment explores the challenges AI introduces in terms of liability and insurance due to its unpredictable nature. The insurance industry must innovate and establish new frameworks to effectively manage AI-related risks and liabilities. Our discussion moves to the introduction of Fuse's new platform, Fuse Terminal. This game-changing tool for commercial insurance consolidates market intelligence and analysis into a unified interface, streamlining operations and enhancing decision-making efficiency. We conclude with a word of caution regarding AI-powered insurance leads. While promising in scope, the successful implementation of these tools depends on their synergy with strong sales skills and prompt customer engagement. As the insurance landscape adapts to these innovations, professionals must refine their strategies to leverage AI-driven opportunities fully. Additionally, we share insights into the launch of Millie by Mavrix Insurance Services, a proprietary AI platform streamlining the brokerage model across Heffernan Group by enhancing workflows for agents and insured clients. Furthermore, CAS Automotive unveils "Damaged Equipment," an on-demand remarketing service for managing damaged or obsolete business equipment, promising new opportunities in asset management. We also touch on the dynamic M&A landscape in insurance brokerage, emphasizing technological readiness as a key factor in acquisitions. According to Felix Morgan, CEO of Trucordia, the divide between tech-savvy brokerages and those needing upgrades is growing, making technology and AI pivotal in valuing agencies. The episode concludes with a strategic partnership between ValueMomentum and Celonis to bolster Property & Casualty claims operations using process intelligence. This alliance seeks to reveal inefficiencies and potential losses in claims processing, empowering insurers to enhance their financial and operational efficiencies. Created by Alan Demers, "The Connected Podcast" acts as an engaging extension of the 'Connected' newsletter, honoring Stephen Applebaum's contributions to the sector. We also introduce Pulse Podcasts, a service transforming written content into professionally produced podcasts, enhancing audience engagement and content delivery. Available on popular platforms such as Apple Podcasts and Spotify, "The Connected Podcast" offers listeners convenient access to the latest updates and insights in insurance and InsurTech. Stay connected with us to remain informed about the industry's cutting-edge developments. Links: Trump's 50% auto tariff threat adds to a cost pressure already hitting Canadian premiums Tokio Marine plots multibillion-dollar deal after Berkshire takes stake - The Business Times Who is liable when AI goes rogue? Fuse introduces AI-powered commercial insurance market intelligence via new Terminal platform - The Truth About AI-Powered Insurance Leads MAVRIX INSURANCE SERVICES INTRODUCES MILLIE: A PROPRIETARY AI-ENABLED PLATFORM BUILT INTO THE BROKERAGE | Morningsta CAS Automotive Launches Damaged Equipment Service Will AI change agency valuations? Buyers are starting to draw a line ValueMomentum Partners with Celonis to Streamline Claims for P&C Insurance Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts

  • S1 · E619
    August 25 · 9 min

    Reno wildfire grows to 15,000 acres as Nevada's new wildfire exclusion law faces its first real test

    In a recent episode of The Connected Podcast, the discussion focused on significant developments within the insurance ecosystem, emphasizing the impact of natural disasters and market trends. The episode kicked off with the alarming situation near Reno, where wildfires have consumed approximately 15,000 acres, prompting evacuations of around 90,000 residents. A state of emergency has been declared, influenced by Nevada's dry climate and invasive grasses. The unpredictable wind patterns further complicate containment efforts, as highlighted by BBC Weather's Matt Taylor. On the financial front, there's been a noteworthy trend in the insurance market with a 2% average decline in commercial property/casualty premiums across all account sizes in Q2 of 2026, as reported by the Council of Insurance Agents & Brokers. Large accounts saw the most significant drop at 3.7%, marking the first uniform decrease across the board in 34 quarters, possibly signaling a shift in the market landscape. In automotive insurance, used-vehicle prices have stabilized to levels similar to the previous year. The Manheim Used Vehicle Value Index reported a 1.2% decline in early August, which insurers are using to assess actual cash values. Despite this decline, Jonathan Gregory from Cox Automotive describes it as remaining within historical norms, indicative of market stabilization rather than a downturn. Lastly, the podcast touched upon advancements in catastrophe modeling. While strides have been made in determining the location and impact of disasters, predicting their timing remains a challenge, particularly with unpredictable events like wildfires. Elizabeth Foughty from Orbital Sentry highlighted the necessity of integrating real-time data to improve response and mitigation efforts, potentially altering outcomes in catastrophic events. In this episode of The Connected Podcast, the hosts explore significant developments within the insurance ecosystem, particularly how climate volatility is altering the industry's landscape. Traditionally rare events such as wildfires, floods, and intense storms are now frequent, compelling property and casualty insurers to evolve rapidly. Accurately pricing these risks and responding to large-scale events has become essential, shifting conversations toward building resilience in the face of routine disruptions. Alongside climate discussions, road safety risks during holiday periods, specifically Labor Day, are analyzed. Data reveals a 36% increase in speeding-related fatal crashes compared to regular Mondays, with insights pointing to heightened distracted driving. These findings underscore the critical need for enhanced road safety measures and innovative risk management strategies during peak travel times. On the regulatory front, the National Association of Insurance Commissioners is working towards an AI model law to maintain robust state-led regulation. Colorado Insurance Commissioner Michael Conway highlights this as crucial for retaining the strengths of the current state-based system, ensuring uniformity and consistency across states. In the realm of technology, insurers are innovating with AI for cost management. Travelers Insurance, for instance, has developed TravelersLLM, a proprietary language model designed for efficient, precise responses to insurance-related questions. This strategic use of AI enables enhanced capabilities and cost savings, blending proprietary development with leading advancements to maintain competitive efficacy. In this episode of The Connected Podcast, the focus is on two major developments in the insurance ecosystem. First, Nearmap introduces "itel Total Price," a groundbreaking tool that promises to transform property insurance claims. This solution addresses prevalent challenges — such as rising material costs and inconsistent estimates — by embedding guaranteed pricing directly into the claims process. As emphasized by Paul Disney, Nearmap's Senior VP of Product, itel Total Price provides insurers with a trusted pricing source, reducing disputes and enhancing claim outcomes within the Verisk Xactimate platform. The podcast also explores a pressing issue concerning tech-enabled litigation instigation, highlighted by Joseph L. Petrelli, President of Demotech. This new wave of litigation tactics, leveraging technology and third-party funding, has contributed to the downfall of certain carriers. Petrelli stresses the importance of a detailed presentation of loss costs to counter these disruptive practices, advocating for increased transparency and accountability. Additionally, listeners are introduced to the 'Connected' Podcast, which offers daily insights into insurance and InsurTech news, hosted by Alan Demers. The episode concludes with a nod to Pulse Podcasts, a service that transforms written content into engaging audio formats, providing a cost-effective way to expand audience reach in today's digital landscape. Links: Reno wildfire grows to 15,000 acres as Nevada's new wildfire exclusion law faces its first real test Commercial Property Rate Cuts Deepen As Soft Market Spreads Across Nearly All Account Sizes Wholesale Used-Vehicle Values Go Flat Year Over Year in Mid-August, Manheim Index Shows - Catastrophe Models Lack Key Data | Insurance Thought Leadership Climate volatility is rewriting the insurance claims operating model Road Risk Alert: Distraction rises 8.5% and speeding jumps 34% on Labor Day - Cambridge Mobile Telematics NAIC summer 2026: Colorado commissioner urges action toward an AI model law Travelers builds its own LLM, cutting AI costs | CIO Dive Nearmap Launches itel Total Price, Bringing Guaranteed Whole-Home Pricing to Property Claims Demotech, Inc.: Tech-enabled Litigation Instigation Necessitates Granularity of Loss Costs Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts

  • S1 · E618
    August 24 · 11 min

    Nuclear Verdicts Against Companies Hit Record High in 2025, Topping $25.6 Billion

    The Connected Podcast The Connected Podcast: Navigating the Latest in Insurance News & Events In the most recent episode of The Connected Podcast, we dive deep into the latest trends and events shaping the insurance ecosystem. This episode dissects various transformative shifts within the industry, enlightening listeners about the complexities and opportunities on the horizon. One of the significant highlights is the rising trend of "nuclear verdicts". According to a report by Marathon Strategies, there has been a stark increase in jury verdicts of $10 million or more since 2020. This trend is driven by factors such as a growing public mistrust of corporations and changing jury demographics. Impressively, in 2025 alone, over 190 verdicts totaled $25.6 billion, impacting 68 industries. The podcast also covers a landmark U.S. Supreme Court ruling affecting freight brokers, making them liable for collisions involving contracted carriers. This decision has led to a seismic shift in legal and financial landscapes, exemplified by a Texas jury's $604 million verdict against a brokerage firm. The repercussions include downsizing carrier networks and escalating insurance premiums. In the realm of casualty insurance, the episode notes that the sector lags behind property catastrophe insurance in analytical maturity, despite its considerable $300 billion annual premium size. There are challenges ahead, but also opportunities for insurers to hone data and modeling capabilities. A noteworthy segment explores Hawaii's innovative parametric coral reef insurance policy, which recently issued its first payout post-Hurricane Lala. Initiated by The Nature Conservancy and Munich Re, this policy promises speedy financial aid for reef restoration, potentially setting a groundbreaking precedent in conservation-focused insurance solutions. This episode delves into the transformative shifts within the claims process in the insurance industry. As policyholders clamor for swifter responses, the industry grapples with antiquated practices and fragmented systems. To combat this, seamless integration of property intelligence is suggested to boost real-time data access, thus enhancing operational efficiency and customer satisfaction. In this enlightening discussion, Wisconsin's Insurance Commissioner, Nathan Houdek, offers insights on the misconceptions surrounding regulation as an obstacle to technological advancement. He advocates for closer collaborations between the public and private sectors, integrating data and AI technologies to improve risk management. Andrew Jernigan from Pliant underscores the necessity of integrating AI within claims processing, warning that failure to adapt could lead to declining service levels and customer satisfaction. The dialogue encourages the industry to embrace technological shifts to sustain growth and transformation. The podcast discusses potential economic hurdles, including rising reconstruction costs as reported by Verisk. From July 2025 to July 2026, a 4% increase has been observed, with Kansas experiencing significant surges in contrast to Utah's milder increments. Such variations impose nuanced economic pressures due to skilled labor shortages amid rising specialized service demands. Mitchell's latest "Plugged-In: EV Collision Insights" report reveals an unprecedented narrowing of cost disparities between repairing battery electric vehicles (BEVs) and internal combustion engine (ICE) vehicles in the U.S. and Canada. However, market disruptions and geopolitical factors could complicate BEV repair costs due to dependencies on OEM parts. Moreover, Klear.ai has enhanced its team with the addition of Jonathan Gerdes, a property and casualty claims expert, aiming to fortify its platform and extend market influence. We also spotlight ITC Vegas 2026, the preeminent global event for insurance innovation, scheduled for late September. Under the theme "Predict, Prepare, Progress", the event will address climate change, technology, and regulatory evolutions. ‘Connected’ proudly sponsors the event, extending exclusive discounts for attendees. Aspiring participants are encouraged to reach out to Alan Demers for registration details and seize this opportunity to immerse in cutting-edge insurance innovations. Links: Nuclear Verdicts Against Companies Hit Record High in 2025, Topping $25.6 Billion A Landmark Supreme Court Ruling Is Upending How America Moves Its Goods Casualty insurance is moving towards property-level analytical maturity: Moody's Lala triggers Hawaii's first-ever reef insurance payout Connected Property Intelligence And The Future Of Insurance Claims Predict & Prevent® Podcast Episode 31: How Big Data and AI Are Reshaping Insurance Oversight Why the insurance claims payout process could deter AI adoption Insurers' Real Barrier to Operational Efficiency Verisk: Labor Costs Drive 4% Total Reconstruction Cost Increase Claims Severity Gap Between Repairable BEVs and ICE Vehicles Hits Record Low Klear.ai Welcomes Veteran P&C Claims Executive Jonathan Gerdes to the Klear.ai Team ITC Vegas | Horizon of Possibilities

  • S1 · E617
    August 20 · 10 min

    Copart Reportedly In Talks To Acquire CCC Intelligent Solutions

    Welcome to the latest episode of The Connected Podcast, where we delve into the significant developments shaping the insurance ecosystem. Our discussions spotlight captivating events within the industry, setting the stage for what lies ahead in this ever-evolving landscape. In particular, we explore the intriguing rumor that Copart Inc. might be negotiating to acquire CCC Intelligent Solutions Holdings Inc.. This potential amalgamation could combine Copart's expansive salvage vehicle operations with CCC's cutting-edge tech solutions for the insurance and collision repair sectors. However, Copart isn't the sole player eyeing this deal, as private equity firms like GTCR and Veritas Capital also show interest. With Morgan Stanley advising CCC on their strategic options since July, the acquisition talks are heating up. Shifting to market trends, the U.S. Consumer Price Index surprised analysts with a 0.3% drop in the motor vehicle insurance index for July, marking the sixth decrease in seven months despite looming rate hikes across various states. Meanwhile, automotive parts prices are climbing, presenting an economic paradox worth noting. Financial updates from the industry reveal that Progressive Corporation experienced mixed results in July, as a rise in net premiums contrasted with a 12% drop in net income, primarily attributed to net realized losses on securities. On the other hand, Allstate Corporation faced substantial catastrophe losses due to severe wind and hail incidents, underscoring the urgency of risk mitigation strategies. Amid these challenges, a strengthening El Niño ominously looms on the horizon, expected to impact weather patterns significantly from December to February, posing unpredictable risks for insurers. This episode of the podcast emphasizes the crucial need for the insurance industry to adapt to these evolving market and climate conditions. The segment continues with a spotlight on advanced technologies powering risk management. As extreme weather events become more frequent, insurance companies are leveraging space-based analytics to enhance disaster response. A case in point is a satellite data-driven framework used to map Portugal's 2026 floods, which facilitated efficient property damage verification and expedited payouts. In a substantial financial move, State Farm announced an unprecedented $5 billion dividend payout to auto policyholders, based on 2025 policy premiums. This decision not only reflects the company's robust financial health but also aims to strengthen customer loyalty. The influence of AI on the insurance sector, as discussed by PwC, hints at a looming rise in mergers and acquisitions, as smaller firms struggle to keep pace with technological advancements. This consolidating trend could reshape the industry as companies strive for technological competitiveness. In acquisition news, Munich Re Group purchased At-Bay, marking its entry into the cyber risk management market and expanding its specialty insurance offerings. This highlights the increasing importance of cybersecurity in today's insurance landscape. A transformative partnership between Snapsheet and Claimtouch Analytics promises to revolutionize claims processing through AI integration, enhancing operations for insurers like Openly, Branch, and Kingstone. This collaboration aims to streamline efficiencies and elevate experiences for adjusters and policyholders alike. Lastly, we explore an exciting development with INSHUR launching a new commercial auto insurance program, targeted at rideshare and professional drivers in the U.S. Collaborating with Mobilitas Insurance, Gen Re, and Incline Property & Casualty Group, this initiative seeks to provide tailored insurance solutions, ensuring comprehensive coverage and driver peace of mind. Insights from the Q2 2026 Quarterly Embedded Auto Insurance Report reveal how embedded insurance models can significantly enhance sales pipelines and customer engagement strategies. Tune in to this episode for an in-depth exploration of these pivotal developments shaping the future of the insurance ecosystem. Links: Copart Reportedly In Talks To Acquire CCC Intelligent Solutions Insurance Price Index Falls Nationally as State Rate Filings Climb, Parts Costs Rise Progressive posts 12% decline in net income July 2026 Monthly Release Super El Niño could flip US winter temperatures upside down How Space-Based Analytics Improve Insurance Risk Models and Disaster Response Who is eligible for State Farm’s $5B auto insurance dividend? How the AI arms race could drive insurance M&A deals Munich Re Group to Acquire Cyber Insurtech At-Bay News & Press Releases | ClaimTouch INSHUR expands US commercial auto programme with Mobilitas, Incline and Gen Re support Embedded Auto Insurance Report

  • S1 · E616
    August 19 · 9 min

    NAIC summer 2026: President flags work on private credit, AI, homeowners

    The Connected Podcast: Navigating the Insurance Ecosystem The Connected Podcast: Navigating the Insurance Ecosystem In the recent episode of The Connected Podcast, the spotlight was on the dynamic changes and challenges within the U.S. insurance ecosystem. The discussion revealed an increased regulatory focus on emerging risks, particularly the application of private credit and AI by insurers. At the NAIC’s summer meeting, Virginia Insurance Commissioner Scott White emphasized the growing role of private equity, prompting regulators to develop new standards for investment risk assessments. The episode also shed light on a significant dissatisfaction gap among home and auto policyholders. A survey conducted by VIU by HUB indicated that one-third of respondents felt their insurance failed them at claims time, with an alarming 14% having claims entirely uncovered. This underscores the urgent need for brokers to actively engage in coverage reviews. Additionally, it was found that a significant portion of policyholders hadn't revisited their insurance coverage since purchase. Innovative partnerships were highlighted, such as Swiss Re’s collaboration with SAS, where the integration of CatNet hazard data with SAS’s analytical tools empowers insurers with advanced predictive insights. This development is set to enhance decision-making in underwriting and pricing through the use of AI-driven tools. Looking ahead, promising data from Florida’s Insurance Commissioner suggested a reduction in property insurance premiums in 51 counties during the first half of 2026, indicating a stabilizing market. Meanwhile, AI's benefits in the insurance sector were noted by Moody's, particularly in retail distribution of property and casualty insurance, pointing to ongoing shifts in underwriting and claims management. Finally, Insurify's integration of a ChatGPT plugin marks a significant advancement in the user experience for car insurance shopping. It enables personalized, real-time interaction, enhancing the ease and efficiency of obtaining and understanding coverage options directly within a chat platform. This shift towards more intuitive and customer-centric insurance processes was emphasized as a game-changer. A deep dive into significant happenings within the insurance ecosystem was explored, including Meta Platforms Inc. and BlackRock's billion-dollar data center project in El Paso, Texas. This ambitious 1-gigawatt campus raises eyebrows due to its scale and intriguing insurance setup, with coverage promises of up to $427 million during construction and $450 million when operational, including protections like $645 million for terrorism and $218 million for rent loss due to construction delays. Meanwhile, customer satisfaction in the insurance sector, particularly among small commercial insurers, is on the rise, attributed mainly to enhanced digital interfaces and stable pricing. Significant progress is observed among micro-businesses, facilitated by digital tools that manage policies efficiently and leverage insurer expertise to address specific business needs. Exploring future risks, the interconnected nature of modern business challenges, from cyber threats to supply chain issues, was underscored. A holistic approach is deemed essential, highlighted by Brown & Brown's 2026 Market Trends Report indicating that emerging technologies are transforming industries faster than organizations and insurers can adapt. Innovations in AI, automation, and more are reshaping businesses rapidly. On the legal front, there is a notable surge in securities class action filings, especially AI-related ones, leading to significant financial losses. These AI cases have risen by 30% in the first half of 2026 compared to late 2025. Meanwhile, cryptocurrency-related cases have dwindled to their lowest since 2019, marking a shifting legal landscape in the tech sector. Lastly, Ron Morrison from MSIG USA discusses how AI and data analytics are transforming insurance claims. These technological advances enhance decision-making and efficiency, proving critical in redefining customer outcomes in the insurance space. This segment delves into the challenges and trends in insurance litigation, with the "wild west" nature of unpredictability and lack of standardization being a focal point. To wrap up, the 2026 CLM Litigation Management Study highlights the increasing significance of sectors like auto and trucking, now accounting for 33% of total litigation spending. The rise in median nuclear verdicts and mid-severity claims gaining traction further underscores the evolving landscape. Interestingly, despite the high stakes, 87% of non-workers' comp litigated claims resolve through settlements rather than court verdicts, emphasizing the importance of improving settlement quality over avoiding trials entirely. Links: NAIC summer 2026: President flags work on private credit, AI, homeowners One in three claimants say their coverage fell short, survey finds Swiss Re and SAS Target Secondary Perils in Insurance State data shows decreasing home insurance premiums in 51 Florida counties Retail P&C most vulnerable to AI disruption within insurance sector: Moody’s Insurify Expands ChatGPT Plugin with Real-Time Personalized Quotes and In-Chat Shopping Meta's $14 Billion AI Data Center Faces Insurance Risk 2026 U.S. Small Commercial Insurance Study - JD Power How Emerging Technologies are Changing Insurance and Liability Risk AI-Related Lawsuits Drive Sharp Rise In Securities Class Action Filings - Risk & Insurance : Risk & Insurance MSIG USA’s Morrison: Technology, AI Are Transforming the Insurance Claims Landscape Managing Litigation Risk in Nuclear Verdict Era Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts

  • S1 · E615
    August 18 · 9 min

    July CPI: Good News For The Fed, Mixed News For P&C Insurers

    The Connected Podcast: News and Events in the Insurance Ecosystem The Connected Podcast: News and Events in the Insurance Ecosystem In this episode of The Connected Podcast, we explore key developments in the insurance industry influenced by recent economic trends and market shifts. The discussion begins with the U.S. Consumer Price Index report, which highlights a 3.4% easing in headline CPI as of July. However, the insurance sector faces unique challenges, such as a 4.5% decrease in motor vehicle insurance prices versus a 6.6% rise in maintenance and repair costs, indicating a disparity affecting pricing and claims. In home insurance, slower shelter inflation doesn't ease claims pressures, impacted more by construction costs and catastrophic risks. Companies like Progressive and Allstate are better equipped to handle these challenges than weaker competitors. The focus then shifts to auto insurance, where despite last year's 6% premium drop in 2025, rates are rising again, with 27 states seeing increases in early 2026. The average cost for full-coverage insurance is expected to reach $2,242 by year-end, reversing previous downward trends. Additionally, Best's Review's August issue offers comprehensive rankings on various insurance sectors, providing competitive insights into areas like pet and cyber insurance. The podcast also examines auto insurance shopping dynamics, as data from LexisNexis reveals a slowdown in shopping and policy growth in Q2 2026, albeit still near record levels. Notable is the rise of the exclusive agent channel and the consistent shopping growth among consumers aged 66+, marking 14 quarters of increase. This group's behavior may indicate broader market trends, particularly for those with MLS home listings, serving as a predictive signal for potential mobility or market shifts. In a recent segment of The Connected Podcast, the discussion centered on significant developments within the insurance ecosystem. A notable event was the 5.8 magnitude earthquake in Ica, Peru, in May 2026, which highlighted the effectiveness of the ShakeNet Parametric insurance policy. This innovative coverage, coordinated by Liberty Mutual Reinsurance with Safehub’s Shake Network, allowed a commercial client to receive a claims payout just 21 days post-disaster. In contrast to traditional indemnity insurance, this parametric approach guarantees swift cash flow after seismic incidents, offering a vital liquidity solution in earthquake-prone Latin American regions. The podcast also covered a shift in the trucking industry as companies combat the challenge of "nuclear verdicts" — jury awards exceeding $10 million. In response, fleets are integrating cameras and sensors to capture crucial data during incidents, enhancing transparency and reducing dependence on personal testimonies in legal scenarios. In the realm of artificial intelligence, insurers are adapting to emerging risks by implementing AI-specific exclusions in commercial liability policies. This proactive stance aims to manage the uncertainties AI introduces across various sectors. Finally, the AM Best 2027 Student Challenge was highlighted as an exciting opportunity for aspiring insurance professionals. This initiative encourages students to innovate in areas like data center insurance and risk transfer solutions, providing valuable industry exposure and networking opportunities that can significantly impact their future careers. In this segment of The Connected Podcast, the focus is on three significant developments within the insurance sector. First, insights from the National Association of Insurance Commissioners' 2026 Summer meeting underscore the critical role of innovation in the industry, particularly in life and property-casualty insurance. Key discussions involved scrutiny on complex investments, risk management, and climate change, with efforts like the Pre-Disaster Mitigation and Risk Modeling Working Group developing proactive disaster mitigation strategies. The second topic addresses generational challenges, spotlighting Gen Z drivers. Notably, a TransUnion report reveals that almost one-third of Gen Z drivers have recently driven uninsured vehicles, presenting insurers with the challenge of maintaining coverage among young drivers who may view non-renewal as a strategic choice due to affordability concerns. Finally, the segment explores the emerging risks associated with modern technology, particularly the rise in shadow AI usage, which IBM links to 43 percent of security incidents last year. This unapproved usage of AI tools by staff emphasizes a critical gap in corporate governance. In light of the EU AI Act's Article 50, companies must enhance transparency and oversight to mitigate these risks. Together, these developments highlight the dynamic interplay of innovation, generational trends, and technology in reshaping the insurance landscape, presenting both challenges and opportunities for the industry. Links: July CPI: Good News For The Fed, Mixed News For P&C Insurers The Great Insurance Sale Is Over, and 32 States Are About to Pay the Tab August Issue of Best’s Review Ranks Top U.S. Insurers Across Multiple Lines of Business LexisNexis U.S. Insurance Demand Meter: Auto Insurance Shopping Volumes Maintain Historic Levels as Q2 2026 Shopping Growth Remains Elevated in 'Warm' Territory Liberty Mutual Re and Safehub complete first sensor-triggered earthquake parametric payout Cameras and Telematics, a Drivers’ Best Defense Insurer Interest in AI Coverage Exclusions Growing as Risk Becomes Omnipresent AM Best Is Looking for the Next Generation of Insurance Professionals Demotech, Inc. Reflects on Recent NAIC 2026 Summer Meeting in Columbus, OH Nearly One-Third of Gen Z Drivers Reported Owning or Driving An Uninsured Vehicle in the Past Six Months Shadow AI Risk Now Drives Insurance And Disclosure Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts

  • S1 · E614
    August 17 · 10 min

    US severe convective storm (SCS) industry losses exceed $35bn - rain and flooding persists

    In a recent episode of The Connected Podcast, the discussion centers on the dynamic shifts and emerging challenges within the insurance sector. Notably, a substantial increase in losses from severe convective storms in the US has been reported by Gallagher Re, a major reinsurance broker, with estimated losses soaring to over $35 billion. This surge is attributed to a series of severe storms that struck regions across the Plains, Midwest, and Mid-Atlantic in early August, featuring a high-impact derecho event in Chicago. Gallagher Re suggests the true economic toll is even higher, accounting for unreported and underinsured losses. Simultaneously, the National Insurance Crime Bureau (NICB) is alerting consumers about the rise in flood-damaged vehicles being resold post-disaster. These vehicles, while appearing untouched, can harbor significant damage and safety risks. NICB estimates about 530,000 such vehicles could be on US roads, urging buyers to verify vehicle histories meticulously. In the homeowners insurance domain, new data from S&P Global Market Intelligence illustrates a market nearing rate adequacy, with average rate changes decreasing significantly. This trend indicates a strategic realignment by insurers who are now tailoring rates according to specific local needs after a comprehensive national rate update. On the legislative front, the California Assembly is considering three significant bills designed to enhance protections for homeowners, particularly post-catastrophe. SB 1301, SB 878, and SB 877 aim to improve transparency, ensure prompt claims processing, and facilitate consumer challenges against underpaid claims. Together, these developments highlight the insurance industry's ongoing efforts to adapt to environmental changes and legislative demands, reinforcing consumer protections amidst increasing natural disaster risks. In the latest episode of The Connected Podcast, the focus is on the evolving role of artificial intelligence in the reinsurance sector. Based on a recent AM Best report, AI is increasingly viewed as a transformative force with the potential to revolutionize underwriting, claims, and operations, provided it’s bolstered by strong governance and risk controls. Although still in the early stages of integration, initial AI investments aimed at enhancing efficiency in document processing and claims management are proving fruitful. This success is encouraging further expansion into underwriting support and risk analytics. Concurrently, insurance regulators are honing their AI oversight capabilities. The National Association of Insurance Commissioners is refining its AI Risk Evaluation Supplement, a key tool for scrutinizing insurers’ AI practices, underscoring the shift toward transparency and accountability in AI usage. As the sector navigates AI integration, a cautionary note is sounded about the complexities of legacy systems. These older systems, combined with new AI solutions, risk creating entrenched infrastructures that could hinder future innovation. A recent EXL study highlights a disconnect between the perceived advancement and actual integration of AI within organizations. It points out that 96% of insurers now view scaling AI as a priority—up from 86% expected by 2025. Significant strides are being made with agentic AI, which enhances risk management, actuarial tasks, underwriting, and customer experiences, driving substantial progress within the industry. In this segment of The Connected Podcast, listeners are introduced to key innovations and shifting dynamics in the insurance industry. Highlighted is nsur.ai's new AI Underwriting Assistant, which enhances the workflow for property and casualty underwriters by supporting their tasks without replacing existing systems. This AI tool streamlines the tedious process of evaluating risks, providing much-needed efficiency in the sector. The conversation then shifts to changing consumer expectations, particularly the demand for more dynamic relationships with insurers. A survey by VIU by HUB reveals that 88% of policyholders value proactive adjustments to their policies to better align with their lifestyles, although a significant communication gap currently exists between them and their providers, signaling a need for more engaged interactions. Lastly, the podcast examines non-weather-related water risks in home insurance. With ZestyAI’s Z-WATER™ model being widely adopted across the United States, insurers can now better assess and mitigate the financial impact of issues like burst pipes and hidden leaks, which are becoming an increasingly costly concern. Overall, this segment underscores the industry’s need to push beyond mere adaptation, advocating for proactive engagement with technological advances, evolving consumer demands, and new risk challenges to drive the insurance sector forward. Links: US severe convective storm (SCS) industry losses exceed $35bn in 2026 so far: Gallagher Re NICB Warns Consumers to Watch for Flood-Damaged Vehicles During Peak Flood Season Homeowners Insurance Market Reaches ‘Fragmented Phase,’ Says S&P GMI Three Bills to Reform Insurance Claims Abuses and Help Homeowners Keep Their Insurance Pass Final Committee, Head to CA Assembly Floor, Says Consumer Watchdog AI adoption in reinsurance likely to remain gradual despite growing enthusiasm: AM Best PYMNTS | Insurance Regulators Get Schooled on AI Governance Is Insurance About to Repeat Its Biggest Technology Mistake with AI? | The AI Journal Insurers Overestimate Their Progress With AI: Study nsur.ai Launches AI Underwriting Assistant 88% OF POLICYHOLDERS WANT TO BE NOTIFIED WHEN THEIR INSURANCE COVERAGE IS NOT OPTIMAL, BEFORE SOMETHING GOES WRONG, NEW VIU BY HUB SURVEY FINDS ZestyAI's Z-WATER wins approval in 20+ US states ITC Vegas | Horizon of Possibilities

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