In the latest segment of The Connected Podcast, hosts dive into the dynamic insurance industry, shaped by emerging technologies and market shifts as outlined in Amwins’ 2025 State of the Market report. A key highlight is the remarkable growth in the excess and surplus (E&S) sector driven by technological advancements enhancing security and preventive measures. New opportunities are surfacing in niche markets, including telemedicine and real estate, while the transportation and cybersecurity sectors are grappling with complexities in risk assessment amid intricate threats.
The healthcare sector is demonstrating signs of recovery, while stability prevails in the energy sector. Introducing AI promises to transform user experiences in the professional lines market through enhanced online portals. In the personal insurance realm, anticipated rate hikes are prompting companies to form strategic alliances with digital brokers to tackle soaring costs. Social inflation, marked by rising insurance claim costs due to legal trends and hefty jury verdicts, is reshaping the global liability insurance landscape. This issue, initially centered in the U.S., is gradually emerging in Europe, with an uptick in class actions across the UK, Netherlands, Germany, and Portugal.
The podcast also underscores the impact of natural perils on over 33,000 homes across 20 U.S. metro areas, urging the industry to bolster risk management efforts and prioritize sustainability amidst escalating threats such as wildfires and floods. A featured segment discusses Sola, an innovative insurtech firm, securing $3.7 million in seed funding to further its mission of providing affordable natural disaster insurance to homeowners and businesses in a volatile market marked by rising premiums and coverage denials. Sola's wind and hail insurance product is designed to alleviate financial burdens for homeowners.
Exploring the life insurance and annuities sector, the podcast addresses the challenges and opportunities arising from the pending generational wealth transfer to millennials. Encouraged by Zinnia's CTO, Brad Medd, the industry is urged to evolve from outdated technologies to technology-driven, self-service solutions that empower consumers to make informed decisions independently. Medd emphasizes the significance of establishing industry best practices and standards to enhance interoperability and customer experience, marking a pivotal industry transformation.
Furthermore, the segment dives into sustainability within the circular economy, featuring Copart, a company rooted in recycling since 1982. Focused on electric vehicles (EVs), Copart plays a vital role in the circular economy by facilitating the recycling and repurposing of EV parts. This initiative helps reduce waste and reintroduces valuable materials into the production cycle, aligning with sustainable consumption and production principles.
In another captivating segment, the rising costs of home insurance in disaster-prone areas and their impact on housing affordability are explored. Mark Cuban emphasizes that insurance costs, rather than interest rates, will be a critical concern for housing, especially in states like Florida experiencing soaring rates due to frequent natural disasters. Shannon Martin from Bankrate Insurance agrees, highlighting that increasing premiums are a considerable burden for homeowners. She notes that the insurance industry is turning to technology and AI to better predict risks and prevent
