Today's Insurance Pulse
Heritage trims reinsurance program, saving $63.2M
Heritage Insurance Holdings renewed its 2026 reinsurance and catastrophe‑bond program with a total limit of $2.2 billion, down from $2.5 billion placed in 2025. The renewal includes $712 million of multi‑year coverage, $550 million from cat bonds and $162 million from private markets. Pricing softness allowed Heritage to cut renewal costs by $63.2 million.
Also developing:
LMA Survey Shows 93% of Lloyd’s Firms Adopt AI Frameworks in One Year
The Lloyd’s Market Association reports that 93% of firms across the Lloyd’s market now have or are building formal AI frameworks, up from half a year ago. The shift, driven by generative AI tools, emphasizes governance, data security and human oversight as the market scales AI adoption.
US Court Strikes Down IRS 831(b) Listed Transactions Designation
A U.S. district court in Texas partially struck down IRS regulations governing 831(b) micro‑captive transactions. While the court affirmed the IRS’s designation of these captives as “transactions of interest,” it ruled the agency did not substantiate a presumption that they...
Why Shipowners Should Pay Attention to Their War Risk Cover
The London P&I Club warns that escalating geopolitical tensions are worsening the maritime risk environment, prompting shipowners to reassess their war risk insurance. Standard marine policies typically exclude war‑related damage, requiring separate coverage for threats such as piracy, terrorism and...
Turicum Re 2026-1 Cat Bond Enables Zurich to Re-Establish Its Presence in Growing ILS Market: Mantero
Zurich successfully sponsored the $150 million Turicum Re 2026‑1 catastrophe bond, securing the upper‑end of its target size and pricing the notes about 7% below mid‑guidance. The fully collateralized, three‑year cat bond provides US named storm and earthquake reinsurance protection through April 2029. This...
What Is Risk Analysis?
Risk analysis is a systematic process that identifies, evaluates, and prioritizes potential threats to an organization’s investigations and broader operations. The article outlines a seven‑step framework—from threat identification through estimation, response options such as avoidance, transfer, mitigation, and acceptance—designed to...
Listen: With Little Federal Regulation, States Are Left To Shape the Rules on AI in Health Care
The White House and several states are at odds over how to regulate artificial intelligence in health care, leaving states to fill the regulatory vacuum. Maryland and Virginia illustrate the split, with each adopting distinct rules for AI use in...
Novelty Premium in Cyber Cat Bonds Has Reduced, but Not Completely ‘Gone Away’: AM Best
AM Best reports that the novelty premium on cyber catastrophe bonds is shrinking but remains present. Capacity in the 144A cyber cat‑bond market grew to $1.235 billion by year‑end 2025, driven by Beazley’s $300 million issuance and Chubb’s $150 million aggregate bond. Loss multiples...
Legal Analysis: Insurer Subrogation Rights Under Scrutiny
Two recent decisions—Axis Insurance Co. v. Barracuda Networks and Travelers Casualty v. Blackbaud—clarify when cyber insurers can pursue subrogation against vendors. The First Circuit rejected Axis’s equitable indemnification and breach‑of‑contract claims because the insurer lacked a direct contract with Barracuda,...
Travelers Profit Rises on Stronger Underwriting, Lower Catastrophe Losses
Travelers Companies posted a first‑quarter core profit of $1.7 billion, or $7.71 per share, a dramatic rise from $443 million a year earlier. The turnaround was driven by a $1.17 billion underwriting gain and a sharp drop in catastrophe losses to $761 million, down...
How Insurers Use Satellite Imagery to Cut Claims Costs After Natural Disasters
Insurers are embedding satellite imagery into catastrophe‑claims workflows to triage damage before adjusters reach the field. By combining optical photos with synthetic‑aperture radar, carriers can see flood extents, fire footprints and roof loss even through clouds or at night. The...
Warren and Hawley Introduce Bill to Bar Vertical Integration of Insurers, PBMs and Providers
Senators Elizabeth Warren and Josh Hawley have introduced the Break Up Big Medicine Act, a bipartisan bill that would prohibit parent companies from simultaneously owning insurers, pharmacy‑benefit managers, providers or wholesalers. The measure seeks to dismantle vertically integrated health‑care giants...
EIS Group Maps Seven AI‑Driven Shifts Set to Redefine P&C Insurance Operations
EIS Group released a detailed briefing that identifies seven AI‑driven shifts poised to reshape property‑and‑casualty (P&C) insurance, emphasizing a move from bolt‑on tools to core operating models and highlighting claims as the fastest path to measurable value. The roadmap aims...
Medicare Payment Policy Changes for 2027: Key Signals From Kennedy Hearings
During House hearings on the FY27 budget, HHS Secretary Robert F. Kennedy Jr. outlined several Medicare payment reforms. He advocated for bundled payment models that include nutrition therapy, remote monitoring, and preventive services, while supporting legislation to expand coverage for...
IAG's Acquisition of RAC Insurance Requires Phase 2 Review
The Australian Competition and Consumer Commission (ACCC) has moved Insurance Australia Group's (IAG) proposed purchase of RAC Insurance into a Phase 2 review, citing a substantial lessening of competition in Western Australia’s motor and home‑contents insurance markets. IAG would underwrite these...
A Guide to Trade Credit Insurance
The International Credit Insurance & Surety Association (ICISA) released "A Guide to Trade Credit Insurance," a practical desk reference that demystifies credit insurance for credit managers and treasury professionals. The book explains policy structures, underwriting, claims, and shows how insured...
Data Highlights Gaps in Finding In-Network Mental Health Coverage
The Kennedy Forum's Mental Health Parity Index reveals that members of the four largest U.S. commercial insurers—Aetna, BlueCross BlueShield, Cigna, and UnitedHealthcare—face lower reimbursement rates and fewer in‑network providers for outpatient mental health and substance‑use‑disorder services compared with outpatient physical...
Jefferson Health’s $180 Million Loss Highlights GLP‑1 Drug Cost Surge for Employers
Jefferson Health’s employee insurance plan posted a $180 million loss in 2025, about one‑third of which stemmed from coverage of GLP‑1 weight‑loss drugs. The surge forced the nonprofit system to tighten eligibility rules, sparking a broader debate on how rising prescription...
Global InsurTech Funding Plummets 78% in March, Hitting 2026 Low
Global InsurTech funding fell 78% in March 2026, slipping below $420 million and marking the lowest level of the year. The only mega‑round was Paris‑based Alan’s €100 million raise, while most deals focused on AI and embedded insurance infrastructure.
What the Insurtech Wave Missed
The latest insurtech surge modernized quoting, underwriting and API connectivity, yet it sidestepped the foundational producer data layer. Fragmented records across carriers, MGAs and state registries have left identity, hierarchy and compliance information in disarray. This data chaos fuels manual...
The War Premium — Defense, Insurance, and the New Cost of Global Trade
In February 2026 the U.S. and Israel’s airstrikes on Iran triggered a rapid collapse of traffic through the Strait of Hormuz, not by missiles but by a spike in war‑risk insurance premiums. Premiums surged from under 0.25% to 5% of...
Why Five-Year Plans No Longer Cut It for Food Businesses
Lidl announced a £600 million expansion of its UK store network, pairing the rollout with a partnership with climate‑risk specialist Risilience. The collaboration uses digital‑twin models to quantify flood, heatwave and insurance cost impacts on existing sites and future developments. Executives...
Admiral's Motor Book Becomes Largest Source of Emissions, Overtaking Investments
Admiral Group disclosed that its motor insurance book has become the company's largest source of greenhouse‑gas emissions, overtaking its investment portfolio. The rise reflects emissions tied to vehicle usage, claims processing and underwriting activities across the motor book. Admiral’s climate...
Toward Equitable Access to Cell and Gene Therapies: Rethinking Co-Payments
Cell and gene therapies now command one‑time price tags exceeding $3 million, creating affordability challenges for the U.S. health‑care system. While patient cost sharing represents a tiny slice of total spending, deductibles and coinsurance can still impose thousands of dollars in...
RFK Jr. To Reform Health Panel That Determines Which Screenings Insurers Cover
Health Secretary Robert F. Kennedy Jr. announced plans to reform the United States Preventive Services Task Force (USPSTF), accusing it of two decades of negligence. The panel, which guides insurer coverage for screenings like colonoscopies, mammograms, and mental‑health tests, has seen its meetings...
Lloyd’s Draws $63 Bn of Fresh Capital as Returns Top 20% for Third Year
Lloyd’s Market Association and ICMR report that total capital in the Lloyd’s market rose to £49.8bn ($63bn), driven by a 10.1% jump in profit before tax to £10.6bn ($13.5bn). The data underscores growing investor confidence and could reshape underwriting discipline,...
Nord Stream Blasts Due to War, Say Insurers Seeking to Avoid Pay Out
Nord Stream AG is suing Lloyd's and Arch Insurance for nearly €580 million (about $684 million) after the 2022 explosions that crippled its Baltic Sea gas pipelines. Insurers argue the policy excludes war‑related damage, contending the blasts were linked to the Ukraine...
Casualty Sidecar / ILS Market to Expand. Alignment, Maturity Driving Investor Interest: SIFMA
Casualty insurance‑linked securities and reinsurance sidecars are poised for rapid growth, according to speakers at the SIFMA ILS conference in Miami. About $1.5‑$2 billion of capital was deployed in these structures last year, and participants expect the market to double its...
Insurers Mull Leveraging Third-Party Capital to Write More Data Centre Business: GC’s Klisura
Guy Carpenter’s CEO Dean Klisura said insurers are looking to insurance‑linked securities to meet rising demand for data‑center coverage. The first quarter of 2026 saw $6.7 billion of new catastrophe‑bond capital, slightly below the $7.1 billion record from 2025. Guy Carpenter issued...
ACA Exchanges Will Continue to Shrink as Fewer Enrollees Pay Premiums, Analysis Suggests
The Wakely Consulting Group analysis warns that ACA exchanges could contract by 17% to 26% in 2026 as a wave of enrollees refuse to pay premiums after the expiration of COVID‑era enhanced tax credits. In January, 14% of beneficiaries failed...
Philippines Plans ID Verification for Healthcare with PhilSys Integration
The Philippines will embed its national ID system, PhilSys, into the PhilHealth Check Utility to verify patients in real time, aiming to curb fraudulent claims and streamline benefit delivery. A memorandum of understanding between PhilHealth and the Philippine Statistics Authority...
Insurers Face the Same Cyber Threats They Underwrite — and Gaps Remain
Insurance carriers, which underwrite cyber risk, are themselves prime cyber‑attack targets. A new report by the Insurance Information Institute and Fenix24 shows insurers generally follow strong security practices but still lag in credential management, backup definitions, and patch deployment cycles....
RBNZ Unveils Draft IPSA Amendments, Opens 12‑Week Consultation on Proportional Rules
The Reserve Bank of New Zealand has published an exposure draft to amend the Insurance (Prudential Supervision) Act 2010, adding explicit proportionality rules and a two‑tier solvency structure. A 12‑week consultation runs until July 7, with the bill slated for parliamentary...
Nationwide Mutual Returns with $200m Target for Aquila Re I 2026-1 Catastrophe Bond
Nationwide Mutual Insurance Co. is re‑entering the catastrophe‑bond market with a target of at least $200 million in multi‑peril reinsurance through the Aquila Re I Ltd. Series 2026‑1 transaction. The deal will issue two $100 million tranches—Class A‑1 priced at 4‑4.75% and Class B‑1 at...
Update Insurance: Rising Construction Costs Leave Owners Under‑insured
Often, long-term real estate owners set their insurance coverages when they buy, then fail to review them as the policies renew annually. That's a mistake. Construction prices have soared over the past 10 yrs. If you...
Missing Protection at Market Peaks Leads to Regret
Remember 3 weeks ago when you were mad at yourself for not buying protection/insurance when markets were at their all time highs and the vix was in the teens...? https://t.co/xBbSHvbDuL
How Insurers Can Use Structured Information for Project Risk Evaluation
A new NIMA Information Management Initiative working group will launch Project IIRIS, a two‑year effort to create a framework and tools that let insurers evaluate construction project risk using structured data. The initiative will define insurer information requirements, develop a...
Insurers Blame War for Nord Stream Blasts to Dodge Payouts
The strange case of Nord Stream > Nord Stream blasts due to war, say insurers seeking to avoid pay out https://t.co/UUFSILeW34
Tower Hill Lifts Winston Re 2026-1 Cat Bond Target to as Much as $375m
Tower Hill Insurance Exchange has increased its target for the Winston Re Ltd. Series 2026‑1 catastrophe bond to as much as $375 million, up from the original $225 million goal. The upsized issuance covers three tranches—Class A, B and C—with each tranche’s size and...
Stop-Loss Insurers Are Using New Tools to ‘Laser’ Out More Patients
Predictive claim‑modeling tools are enabling stop‑loss insurers to more precisely identify participants likely to incur $1 million‑plus medical expenses, a practice insiders call “lasering.” Executives say the rise in high‑cost claims and improved data access are prompting carriers to exclude or...
We Are Measuring the Value of TPRM Wrong
At Icon 2026 the speaker warned that companies are measuring third‑party risk management (TPRM) value the wrong way, treating it as a simple technology purchase or compliance checklist. He argued the true business case centers on avoided disruption, avoided loss, and...
Banks Won't Get Serious About Climate Risk Until GSEs Make Them
Former FHFA chief economist Alexei Alexandrov argues that climate risk in U.S. mortgages will only be addressed when the government‑sponsored enterprises (GSEs) embed forward‑looking insurance costs into underwriting. Escalating flood and wildfire exposure is already driving higher premiums and pressuring...
FCA Takes Next Steps Toward Enforcement Action Against Hartley Pensions and an Individual
The UK Financial Conduct Authority (FCA) has issued warning notices to Hartley Pensions Limited and a senior individual, signalling the next phase of potential enforcement. The regulator alleges the pension firm supplied false information and withdrew customers' SIPP funds without...
Mind the Gap: A UK Microprudential Perspective on General Insurance Protection Gaps
The Prudential Regulation Authority (PRA) released a micro‑prudential review of general‑insurance protection gaps, examining how these gaps intersect with its safety‑and‑soundness, policyholder protection, and financial‑stability objectives. The paper highlights persistent gaps in flood and cyber coverage, noting FloodRe’s role in...
FCA Targets AI Governance and Off-Channel Messaging
In February 2026 the FCA replaced a backlog of individual letters with a series of sector‑specific Regulatory Priorities reports, beginning with insurance and followed by wholesale markets, retail banking and consumer investments. The reports signal a collaborative stance on artificial...
Ariel Re Secures $125m of Retro From First Titania Re Cat Bond to Use London Bridge 2 PCC
Ariel Re has priced its sixth catastrophe bond, securing $125 million of U.S. multi‑peril retrocession through the Titania Re 2026‑1 issuance. The deal uses the Lloyd’s‑backed London Bridge 2 PCC structure, marking the first time a Titania Re cat bond has employed this...
Travelers’ CTO Pushes Fewer, Bigger AI Bets, Launches Anthropic and OpenAI Tools
Travelers’ chief technology and operations officer Karen Lefebvre is consolidating the insurer’s AI program into a handful of high‑impact projects. In January 2026 the firm gave roughly 10,000 engineers and analysts access to Anthropic’s personalized assistants, and a month later...
HDI Global CEO Flags Elevated Volatility in US Commercial Insurance
HDI Global chief executive Jim Clark warned that the US commercial insurance market is moving into a period of elevated volatility. He said insurers must adopt risk‑by‑risk underwriting, focus on profitable growth, and lean on data‑driven tools as capacity shifts...
Executive Viewpoint: Why Insurers Are Struggling to Keep Pace With Risk
Property‑casualty insurers are falling behind not because they lack data, but because their underwriting and pricing processes cannot keep up with the accelerating pace of risk. Aon’s latest catastrophe insight report shows insured losses of roughly $127 billion in 2025, driven...
How Alaska Became the Only State With No Medicare Advantage
Alaska is the nation’s only state where individual Medicare Advantage (MA) plans are unavailable for general enrollment, a situation driven by high health‑care costs and fragmented provider networks rather than state law. Private insurers cannot build low‑cost networks because Alaskan...
The Financial Impact of Low Engagement in Digital Health Programmes
Digital health programs are proliferating in insurance, but low ongoing engagement erodes their value. Insurers that only track downloads miss out on cost reductions, richer underwriting data, and customer retention benefits. Research from dacadoo shows sustained app usage can cut...