Live Insurance News

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…

Is Allstate Insurance Ready to Re-enter California with Huge Losses

May 27, 2024May 27, 2024 Loreen

Allstate Insurance Reports $491 Million in Losses from Catastrophic Events Allstate Insurance disclosed that $491 million of its recent losses were due to 11 distinct catastrophic events, with roughly 80% coming from four major wind, hail, or tornado occurrences. The remainder of the losses included claims reserve re-estimates for ongoing catastrophes. This revelation highlights the extensive challenges faced by the insurance sector amid an era of increasingly severe and frequent natural calamities. AM Best noted that Aon pointed out potential billions in losses insurers could have endured due to severe…

California Insurance Commissioner and Farmers CEO: A Groundbreaking Dialogue on the Insurance Crisis

April 15, 2024April 14, 2024 Angela Linders

California continues to struggle with a growing insurance crisis, as homeowners face towering premiums and the daunting task of securing coverage. Amidst this turmoil, insurers have retreated, leaving many Californians in a lurch. But in a recent twist, the path to resolution may hinge on a compromise that allows insurers to adjust rates based on future risk assessments. State Insurance Commissioner Ricardo Lara, spearheading new regulations to mitigate the crisis, likens his relationship with the insurance industry to a “forced marriage” — staying together for the larger family’s sake. This…

Judge Rules on Allstate’s Million-Dollar Typo

March 7, 2024March 6, 2024 Marc

A case that pitted a Bend, Oregon couple against Allstate Insurance over a mistakenly high settlement offer culminates with the insurer’s error deemed non-binding by federal court. Court Rejects Allstate’s $1M Error The legal saga unfolded when Debra and Kevin Kilroy thought fortune had smiled on them, misled by a typo-infested settlement letter from Allstate which followed Debra’s traumatic encounter with an off-leash dog in 2020. A Painful Mishap with Life-Altering Consequences Debra, while walking on a local trail, suffered multiple fractures after being injured by the Great Pyrenees. The…

Lawsuit Alleges USAA Uses Computer System to Arbitrarily Deny, Reduce Claims

February 20, 2024February 19, 2024 Logan B.

In a legal case currently gaining attention, USAA is accused of utilizing a computer program to indiscriminately deny or lessen claims for personal injury protection and medical payments. This system, provided by CCC’s Auto Injury Solutions, is at the heart of numerous lawsuits that the insurance giant has faced in recent years. Allegations of Systematic Denials The class-action lawsuit, which emerged from Washington Superior Court for Clark County, suggests that USAA’s reliance on Auto Injury Solutions’ (AIS) computerized system is to the detriment of policyholder claims following vehicle accidents. San…