In this segment of The Connected Podcast, the hosts delve into the current trends and challenges in the insurance ecosystem, highlighting significant developments in home and auto insurance. Home insurance rates have surged by an average of 21% from May 2022 to May 2023, primarily due to increasingly severe weather events. Carlos Martín from Harvard comments on the evolving risks and economic pressures facing both insurers and homeowners.
Similarly, auto insurance rates have spiked, with a 24% rise in comprehensive car insurance in the last year, and projections indicate a continuing upward trend. By June 2024, average annual costs of full coverage could hit $2,469, marking a potential 22% increase.
Focusing on Hawaii, nearly $38 billion in disaster insurance purchased over 20 years has generated significant profits for insurers, but also controversies, particularly regarding lawsuits following last year's Maui wildfires. Governor Josh Green has criticized companies like State Farm for their subrogation practices aimed at recouping their wildfire payouts.
In California, Liberty Mutual is non-renewing fire insurance policies for approximately 17,000 customers due to an older filing, though they continue offering coverage under their Safeco brand.
The podcast also highlights innovation in the industry, with Plymouth Rock Home Assurance embracing predictive modeling under CEO Bill Martin, exemplifying how even established regional carriers can lead technological advancements in homeowners insurance.
In this episode of The Connected Podcast, we delve into recent developments within the insurance ecosystem. Notably, Ryan Specialty has entered into a definitive agreement to acquire the property and casualty MGUs from Ethos Specialty Insurance, owned by Ascot Group Limited. The acquisition, slated to close in September 2024, will see Ethos P&C—which includes eight programs underwriting across a diversified panel of carriers—integrated into the Ryan Specialty Underwriting Managers division. Key sectors covered by Ethos P&C range from manufacturing and excess property to CleanTech general liability.
Interestingly, Ethos' Transactional Liability MGU will remain with Ascot and is not included in this acquisition. Evercore acted as the exclusive financial advisor to Ascot for the transaction. Patrick G. Ryan, CEO of Ryan Specialty, emphasized Ethos P&C’s alignment with Ryan Specialty’s innovative and entrepreneurial spirit.
Additionally, the segment touches on the historical appeal of the insurance industry, highlighted through classic noir films like "Double Indemnity," and its renaissance in the late 2010s driven by insurtech companies like Lemonade and Hippo. However, the podcast notes the sector's downturn post-2021 amid changing economic conditions. Despite this, recent data from PitchBook indicates optimism with $1.2 billion in venture capitalist investment in 106 insurtech deals in Q2 2024, marking significant quarter-over-quarter increases in both deal value and count. While cautious investment trends continue, there are signs of recovery and sustained interest in the insurtech landscape.
In today's episode of The Connected Podcast, we explore significant developments in the insurance ecosystem, focusing on property and casualty (P&C) insurers' pivotal role in promoting ethical Artificial Intelligence (AI). A new report by the Insurance Information Institute and SAS, titled "Pioneering Ethical AI: The Crucial Role of Property and Casualty Insurers," highlights how P&C insurers can influence AI ethics across industries. A webinar on September 12, 2024, will discuss key insights from this report.
Matthew McHatten, President and CEO of MMG Insurance, stressed the importance of collaboration between insu
