Insurance

Regulator says it will rule urgently; Consumer Watchdog says insurer must disclose more information to justify an increase.

(Bloomberg) --State Farm, the largest home insurer in California, is asking for an emergency rate hike from state regulators as it warns that multibillion-dollar payouts from the Los Angeles wildfires threaten its balance sheet and the broader insurance market.

Terms of home insurance policies and rising construction costs will affect how those who lost their homes in the Los Angeles wildfires can rebuild.

Tech companies Wuuii and ZestyAI enhance underwriting with risk evaluation capabilities.

New Zealand plans to introduce legislation before the end of the year that will create a framework to help communities and businesses adapt to the impacts of climate change.

Arch appoints EVP, COO and Allianz divisions leadership changes, plus more career moves.

Nevada is the state with the most car thefts, based on a study from Tires Easy.

The future of insurance AI is open

A round up of announcements and actions by the state's insurance regulator, a consumer advocate and an industry trade association.

After the California wildfires, other state governments are reacting to wildfire mitigation and related insurance coverage issues, proposing bills or announcing plans for action.

The state's insurance crisis, worsened by the L.A. wildfires, has people talking about measures including mitigating risk, price signaling and even moving residents out of risky areas.

The FEMA-operated program has over 4.7 million policies in force, and lawmakers have kept it intact via dozens of short-term extensions since 2017.

The nation's largest homeowners insurance providers imposed rate hikes in double-digit percentages last year, led by Farmers' 53.5% increase in Maryland.

Jodie Wallis, global chief analytics officer at Manulife, which operates as John Hancock in the U.S., spoke with Digital Insurance about how the company is deploying GenAI.

Polly data and Everest Group insights on shifting trends in auto and embedded insurance.

Insights from Clyde & Co, Climate X and Innsure.

The California State Assembly has introduced a bill to issue catastrophe bonds to shore up the state's last-resort property insurance, the FAIR Plan. Bonds would remove the burden of L.A. wildfire fallout from taxpayers, insureds and insurers. But analysts say a nationalized risk pool might be necessary.

As vehicles become more connected, autonomous, shared, and electric, the traditional landscape for auto insurance will undergo transformation.

AI-evaluated insurance claims denials can depend on characteristics of the claimant, not just the merits of their claim. AI may not be a reason or the only reason for a claim denial, experts say.

The North Carolina Rate Bureau, representing home insurers, settled for two 7.5% increases this year and next, after originally seeking a 42% rate increase. NCRB says the settlement just postpones the need for higher rates to accurately cover risks, while the insurance commissioner calls it "a big win" for homeowners.