Live Insurance News

Insurance Giants in Focus: A Tale of Two Third Quarters

November 6, 2024November 5, 2024 Ester Adams

Spotlight for Insurance Investors As the third-quarter financial results roll in, the spotlight is on two titans of the insurance industry: Berkshire Hathaway and Allstate. Both companies have reported significant figures that reflect their current standing and future prospects in the insurance market. The question arises: Are insurance investors likely to shift their focus, perhaps swayed by Allstate’s recent performance? Berkshire Hathaway: Navigating Setbacks Berkshire Hathaway, renowned for its exceptional insurance underwriting, faced uncharacteristic setbacks this quarter. The company reported more than $1 billion in insurance-related losses, attributed to increased…

Why Allstate Is Dodging Florida and California in Its Expansion Plans

November 4, 2024November 3, 2024 Nordstrom

Allstate’s New Focus Does Not Include California and Florida In a significant strategic move, Allstate is positioning itself to capitalize on growth opportunities in the homeowners insurance market by focusing on lower-risk areas, consciously steering clear of Florida and California. This decision aligns with the company’s commitment to maintaining profitability while navigating the increasing challenges posed by severe weather events and inflation. Navigating the Risk Landscape Allstate’s decision to avoid expanding its homeowners insurance market share in Florida and California stems from the heightened risk of weather-related losses in these…

State Farm Leads in Digital Tools but Faces New Customer Demands

September 27, 2024September 27, 2024 Ester Adams

In the rapidly evolving landscape of property and casualty (P&C) insurance, digital innovation is key to staying ahead. The 2024 P&C Insurance Experience Benchmark report from Corporate Insight has identified State Farm as the leader in providing top-notch digital tools. Yet, despite its dominant position, State Farm faces new challenges as customers demand more detailed coverage information rather than simply the ability to pay bills online. This shift in customer expectations raises questions about the traditional role of insurance agents in an increasingly digital world. State Farm – A Digital…

California, Colorado and Texas Face Billion-Dollar Home Insurance Dilemma

August 27, 2024August 26, 2024 Nordstrom

California’s Growing Wildfire Risk for Home Insurance Market California homeowners face a growing problem: over 1.2 million homes are at moderate or high risk of wildfire damage, with reconstruction costs exceeding $760 billion. According to CoreLogic’s Wildfire Risk Report, this is particularly concerning for those living in the Wildland Urban Interface (WUI), especially in areas like Los Angeles, San Diego, and Riverside. Climate change is a significant factor, with NOAA’s data showing the number of acres burned each year has nearly doubled since the early ’80s. Reconstruction costs for damaged…

Car Insurance Costs Explode in 2024 with an Overall Jaw-Dropping 26% Hike

August 21, 2024August 20, 2024 H. Cutner

Car Insurance Premiums Surge in 2024 Car insurance premiums skyrocketed by an average of 26% in 2024, pushing the national average cost for full coverage to a staggering $2,543 per year. This marks a significant rise from $2,014 in 2023 and $1,771 in 2022. Several factors contribute to this surge: The Bureau of Labor Statistics notes that while overall annual inflation was 3.2%, car insurance rates spiked 20.6%. States differ in rate increases, with New Jersey and Missouri seeing hikes of 45.69% and 44.16%, respectively. Florida and California remain among…

Catastrophe Losses in 2024: A Challenging Year for the Insurance Industry

August 20, 2024August 19, 2024 Elizabeth Price

2024’s Insurance Industry Turmoil: State Farm and Others Navigate the Aftermath of Hurricanes Debby and Beryl The year 2024 has proven to be a tumultuous period for the insurance industry, with back-to-back natural disasters resulting in substantial financial losses for major insurers. Hurricanes Debby and Beryl have left a trail of destruction across multiple states, posing significant challenges for companies like State Farm and Allstate as they navigate the aftermath. Hurricane Debby made landfall as a Category 1 hurricane in Florida’s Big Bend region on August 5, 2024. With maximum…

Allstate’s $2 Billion Deal: What Investors and Policyholders Need to Know About the Big Sell-Off

August 16, 2024August 15, 2024 Ester Adams

Allstate Divests Employer Voluntary Benefits Business for $2 Billion: Impact on Investors and Policyholders In a strategic move that sent ripples through the insurance sector, Allstate has sold its Employer Voluntary Benefits business to StanCorp Financial Group, known as The Standard, for $2 billion. This transaction marks the beginning of Allstate’s plan to divest its Allstate Health & Benefits units, including Employee Voluntary Benefits, Individual Health, and Group Health, in a bid to unlock their growth potential by merging them with companies having complementary strengths. The announcement has been met…