State insurance regulators are willing to work with the federal government but continue to maintain that they are best positioned to oversee the industry. The National Association of Insurance Commissioners (NAIC) is prioritizing mitigation to deal with the impacts of a changing climate. Insurers must be ethical and transparent in how they utilize artificial intelligence so as to not perpetuate bias.Connecticut Insurance Commissioner Andrew Mais, in his capacity as both president of the NAIC and a state regulator, discussed various pressing issues including the role of...

Mutual of Omaha Insurance Co. has announced its plans to explore the formation of a mutual insurance holding company (MIHC), as confirmed in its 2023 annual statement. The company stated that it is undertaking this exploration to fully understand the structure's requirements and potential consequences, without establishing a specific timeline for the process.The potential MIHC formation would enable Mutual of Omaha to maintain its policyholder ownership structure while enhancing its access to external sources of capital. This move reflects the company's strategic...

The Allstate Corp. reported a significant turnaround in its financial performance, with the company marking its first positive pretax net income since Q1'22. In the fourth quarter of 2023, Allstate recorded a net income before taxes of $1.83 billion, a stark improvement from a net loss of $410 million in the same period of 2022. This positive result was driven by rate increases and enhanced property-liability underwriting income and ratios.Analyst Meyer Shields from Keefe, Bruyette & Woods highlighted the effectiveness of the rate increases, stating, "We're still seeing...

Root Inc., an insurance technology company, is planning to expand into new markets with the goal of establishing a nationwide presence for its car, home, and renters lines of business. The company recently reported its best-ever quarter, with CEO Alex Timm expressing confidence in their path to profitability.In an interview with S&P Global Market Intelligence, Timm discussed the company's expansion plans and the key role of technology in enhancing underwriting results and improving unit economics. He mentioned, "We're in 34 markets today and we don't see a reason Root...

The aggregate value of insurance underwriter M&A in North America increased in 2023, marking a positive trend amidst a wider decline in overall dealmaking. According to an analysis by S&P Global Market Intelligence, while the level of deal activity in the insurance sector decreased by 2% with 96 transactions in 2023 compared to 98 in 2022, the aggregate transaction value saw a significant uptick to $16.23 billion, a 16.8% increase from the previous year's $13.89 billion.The largest deal of the past year involved Brookfield Reinsurance Ltd.'s planned acquisition of...

Lemonade's stock took a significant hit this week following the release of its earnings report. "What's transpiring here is they still were losing a lot of money," said Kaenan Hertz, Managing Partner at Insurtech Advisors, expressing investor disappointment with the results.In response to the market reaction, Lemonade CFO Tim Bixby stated, "In the company's view, its fourth-quarter 2023 results were arguably one of the best quarters we've had since going public three years ago." Bixby also highlighted that revenue, gross profit, and in-force premium were up year over...

An evolving reporting environment for greenhouse gas emissions is expected to drive the adoption of a key standard for measuring emissions in insurers' underwriting portfolios. The Partnership for Carbon Accounting Financials (PCAF) launched the first version of an insurance-associated emissions standard in November 2022, but its adoption has been limited thus far. However, with the introduction of the new accounting standard for climate-related disclosures, IFRS S2, insurers and their clients are now under pressure to provide more information on their emissions. This...

The Partnership for Carbon Accounting Financials (PCAF) has announced its plans to release an expanded version of its insurance-associated emissions standard in the first half of 2025. This new version will address areas that were not included in the initial standard, specifically treaty reinsurance and construction all-risk/erection all-risk cover.Marco Tormen, managing consultant at Guidehouse and head of PCAF's activities in Europe and German-speaking countries, highlighted the importance of these two areas in an interview. He stated, "These are two of the most...

The growth of personal auto premiums written through the direct channel has slowed down in recent years, according to a report by S&P Global Market Intelligence. While direct personal auto insurance writers are still growing, their rate of growth is lagging behind that of the traditional market. In 2023, direct channel premiums rose by 10.3%, compared to an 18.7% growth for the rest of the market.The direct channel refers to customers who purchase insurance online, via mobile devices, or by phone, without the involvement of an agent. This channel has been dominated by...

Untreated sinus issues can cause many different problems down the line, and it is important to remember during American Heart Month the links between chronic sinusitis and cardiovascular health. According to Dr. Stephen Bane of Capitol Breathe Free Sinus & Allergy Centers, sinusitis can lead to serious issues such as heart attack and stroke.

In a recent episode of the ESG Insider podcast, the focus was on how the insurance industry is tackling the dual challenges of climate change and biodiversity loss. Rebekah Clement, Corporate Affairs Director at Lloyd's of London, emphasized the importance of considering both issues together, stating, "The two are inextricably linked, and it is so, so important that we're looking at both of them in the round."While the industry has made progress in addressing climate change, there is still work to be done in understanding and addressing biodiversity loss. Clement...

The Cigna Group has announced its plan to sell its Medicare business, a move that industry analysts believe will position the managed care insurer for future acquisitions. The divestiture, in which Cigna will sell its Medicare businesses to Health Care Service Corp. for approximately $3.7 billion, comes at a challenging time for Medicare Advantage as insurers face growing medical costs associated with the plans due to delayed care caused by the COVID-19 pandemic.According to S&P Global Ratings analyst Francesca Mannarino, Cigna's Medicare segment lacked the necessary...

The cyber insurance market is facing significant challenges due to the rapidly evolving information security landscape. In a recent episode of Next in Tech, analysts Thomas Mason, Dan Kennedy, and Scott Crawford discussed the complexities surrounding cyber insurance and the technologies associated with it.Insurers have traditionally played a crucial role in managing risk for businesses. However, the rise of cyberattacks, such as ransomware, has brought about a new kind of existential risk that has forced insurers to reevaluate their strategies. Thomas Mason, one of the...

Texas regulators have approved several significant homeowners' insurance rate increases in the fourth quarter of 2023, making it one of the most impactful states in terms of rate hikes in the United States. According to an analysis by S&P Global Market Intelligence, Texas regulators cleared 46 rate increases during the quarter, with 10 of them ranking among the most substantial in the country.One of the most significant rate hikes was granted to State Farm General Insurance Co. by California state regulators. The company's overall rate was increased by 20%, resulting in a...

Humana Inc. experienced a significant drop in stock value following the release of its fourth-quarter 2023 results, which revealed higher-than-anticipated costs associated with Medicare Advantage. Medicare Advantage refers to expanded versions of government-subsidized health plans aimed at seniors. The increased utilization of services led to elevated medical loss ratios, impacting managed care insurers throughout 2023.Humana's earnings call on January 25 highlighted the unexpected rise in Medicare Advantage medical costs, which reached 91.4%, surpassing the 89% estimate...

The US insurance technology, or insurtech, market is showing signs of recovery in 2024. Industry consolidation is well underway, and companies that have managed to weather the storm are making progress on their expense reduction plans. Public market investors are also showing renewed interest in growth stocks, leading to a rebound in insurtech stock prices.According to a report by S&P Global Market Intelligence, insurtech stocks have performed well in 2023, with a market-cap weighted index of these companies up 22.2% compared to a decline of 54.0% in 2022. This recovery...

H.I.G. Capital, a leading global private equity investment firm, has announced that its growth capital investment affiliate, H.I.G. Growth Partners, has completed the sale of its portfolio company, Just Home Healthcare Services (JHC). Lincoln International LLC and Edgemont Partners provided financial advisory services for these transactions while McDermott Will & Emery LLP served as legal counsel to JHC.

Dr. Stephen Bane, an ENT specialist, said that a septoplasty procedure is the best solution for a deviated septum. Hollywood stars Jennifer Aniston and Cameron Diaz had similar procedures done to help with breathing and overall health. Dr. Bane, a former U.S. Navy flight surgeon, trained in general surgery in New York at NYU and Bellevue Hospitals and was recognized as one of Northern Virginia Magazine’s Top Doctors in 2020.

The Basser Center for BRCA at the Abramson Cancer Center of the University of Pennsylvania has declared Kenneth Offit, MD, MPH, as the recipient of their 2023 Bassar Global Prize. "It is an honor to be recognized with this award from the Basser Center, which is making a difference for patients with inherited BRCA1 and BRCA2 mutations across the world," said Kenneth Offit.

Earlier this month, surgeons at Mayo Clinic's Rochester location performed the first-ever robotic-assisted kidney transplant in the state of Minnesota. The procedure was completed by Timucin Taner, M.D., Ph.D., division chair of Transplant Surgery and Patrick Dean, M.D., according to a press release from Mayo Clinic.