Insurers, Brokers React to Data Center Boom
The insurance industry is rapidly expanding capacity to cover the data‑center boom, driven by AI‑powered demand for massive computing power. Aon doubled its lifecycle program to $2.5 billion in January and added $1 billion in April, while FM Intellium lifted limits to $5 billion and Marsh’s Nimbus facility now offers $2.7 billion. Insurers are also bundling coverage—from construction to operational risks—and launching specialized products such as Zurich’s $2 billion builders‑risk package. Swiss Re projects global data‑center insurance premiums to exceed $24 billion by 2030, highlighting both opportunity and exposure to catastrophe‑prone locations.
Risk Professionals Grapple with Rapid Expansion of AI
Risk professionals are racing to keep pace with the rapid expansion of artificial intelligence, building governance structures, cross‑functional teams and clear usage policies to curb emerging threats. Insurers such as Arthur J. Gallagher, Axa XL and Zurich are adopting the NIST...
Co-Pay Models and AFPs Shift Costs but Raise Access Concerns: Patty Taddei-Allen, PharmD, MBA
Co‑pay accumulators, maximizers, and alternative funding programs (AFPs) are gaining traction as insurers and PBMs attempt to curb rising drug costs. While accumulators and maximizers keep the existing benefit design, they shift more out‑of‑pocket expenses onto patients. AFPs, by contrast,...
FY 2027 Hospice Payment Rate Update Proposed Rule Summary
On April 6, 2026 CMS proposed a rule that would raise Medicare hospice payments by about $785 million, a 2.4% increase for FY 2027, driven by a revised wage index and a new service‑spending variation index. The rule also requires hospices to...
Alternatives to PAIN Act Raises Access and Market Stability Concerns: Adam Colborn, JD
At the AMCP annual meeting, officials discussed the Alternatives to PAIN Act, a proposal that would lower cost‑sharing and eliminate utilization restrictions for certain non‑opioid pain drugs under Medicare Part D. Associate vice‑president Adam Colborn warned that such mandates could destabilize the...
6 Agentic AI Insurance Use Cases to Prioritize in Claims
Insurance carriers face pressure to shorten claim cycles, curb leakage, and boost customer experience while avoiding regulatory risk. Although AI tools have proven value in isolated tasks, most lack integration into core claim processes, limiting autonomous action. The article outlines...
What Is an Underwriter in Finance? Roles and Types Explained
Underwriters are the financial gatekeepers who evaluate and assume risk across mortgages, insurance policies, loans, and securities, charging fees for their expertise. In mortgages they verify borrower qualifications and property values, while insurance underwriters decide coverage based on risk factors....
CMS Proposes Repeal of Add-On Payment Path for Breakthrough Devices
The Centers for Medicare & Medicaid Services (CMS) has proposed repealing the alternative pathway for new‑technology add‑on payments (NTAP) beginning in fiscal year 2028, restoring the requirement that all devices demonstrate a substantial clinical improvement. The alternative pathway, created in...
UK’s PRA to Continue Reforming ILS and Cat Bond Frameworks to Enhance Competitiveness
The Prudential Regulation Authority (PRA) announced that its 2026/27 business plan will keep advancing reforms to the UK insurance‑linked securities (ILS) and catastrophe‑bond frameworks. Building on earlier consultations, the regulator is targeting faster ISPV approval timelines—potentially as short as ten...
Insurance Costs Jump up to 17 Times Amid Middle East Conflict - MOF
Malaysia’s Ministry of Finance warned that the Middle East conflict has driven insurance premiums up to 17‑fold and shipping costs to triple, compounding the recent surge in petroleum prices. The heightened risk has forced vessels onto longer routes, inflating fuel...
Twelve Securis and Bank J. Safra Sarasin Extend Distribution Partnership to Italy and Spain
Twelve Securis, a specialist in catastrophe bonds and insurance‑linked securities, has expanded its long‑standing distribution partnership with Bank J. Safra Sarasin to include Italy and Spain. The collaboration, dating back to 2011, already produced co‑branded funds such as the JSS Twelve Sustainable...
Medicare Can Save $4 Billion On Four Cancer Drugs – Can You Guess Which Ones?
The Inflation Reduction Act authorizes Medicare to negotiate drug prices, starting with ten high‑spending products and expanding each year. By targeting four oncology drugs—Pomalyst, Ibrance, Xtandi and Imbruvica—Medicare could save over $4 billion, with Imbruvica alone offering more than $1 billion in...
After 25 Years Of Consumer-Directed Healthcare, What’s Missing?
After two decades of consumer‑directed health policies, the market still lacks the tools needed for patients to act as shoppers. While price‑transparency rules and AI‑driven APIs exist, most care decisions remain embedded in provider referrals and opaque benefit designs, limiting...
How Is AI Rapidly Transforming the Insurance & Financial Services Sectors
Artificial intelligence is reshaping South Africa's insurance and financial services, accelerating claims handling, underwriting and customer interaction through chatbots, AI‑driven fraud screening and deep‑fake detection. Adoption remains uneven: banks have embraced AI at a 52% rate, while insurers lag at...
Beazley Plans $1B Marine War Consortium for Transiting Strait of Hormuz
Beazley, a specialty Lloyd’s insurer, announced a $1 billion marine war consortium to cover vessels and cargo transiting the Strait of Hormuz. The program splits capacity evenly between hull war and cargo war, each with $500 million, and will be led by...
Aon Estimates Q1’26 Global Insured Catastrophe Losses of $20bn at Least
Aon reported that global insured catastrophe losses reached at least $20 billion in Q1 2026, 6% above the 21st‑century average, while total economic losses fell to $37 billion, the lowest since 2015. The United States contributed over 75% of insured losses, driven mainly...
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...
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...
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...
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...
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...
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....
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...
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...
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...
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...
Insurance Carriers Quietly Back Away From Covering AI Outputs
Major U.S. insurers are quietly pulling back from covering AI‑generated outputs in cyber‑risk and errors‑and‑omissions policies. While some carriers are outright declining to write such coverage, others are imposing steep premium hikes or carving out explicit exclusions for AI‑related liabilities....
What Will You Learn At A Defensive Driving Course (That Could Also Save Money On Your Insurance)?
Defensive driving courses teach techniques like the five‑step Scan‑Identify‑Predict‑Decide‑Execute process and the three‑second following‑distance rule, improving situational awareness for everyday motorists. The National Safety Council and state‑approved programs offer both online and in‑person classes, with typical online fees around $25...
Origami Risk to Power Core Systems for Tokio Marine HCC Specialty Group
Origami Risk has been chosen by Tokio Marine HCC Specialty Group to replace its core insurance systems with a cloud‑native property and casualty platform. The solution will cover policy administration, billing, claims, analytics and reinsurance modeling across the insurer’s global...