Alan Gray Selected to Provide Run-Off Administration Services for ECRA and CMC Reinsurance Pools
Weekly Articles
| Reinsurance News
AM Best emphasizes the increasing unpredictability of California wildfires, urging insurers to reassess their risk appetites and calling for comprehensive insurance market reforms. The agency highlights the need for updated risk models and regulatory adjustments to ensure market stability and adequate coverage.
| Claims Journal
A study from World Weather Attribution indicates that climate change has increased Southern California’s early January wildfire risk by 35% compared to the pre-industrial era. The research highlights factors such as higher temperatures, increased drought frequency, and extended fire seasons that contributed to recent devastating wildfires.
| Claims Journal
A recent study in Environmental Research Letters reveals that oceans are warming four times faster than in the late 1980s, now increasing by 0.27°C per decade. The acceleration, caused by rising greenhouse gas levels and diminishing ice cover, leads to higher sea levels, extreme storms, and more frequent, severe wildfires.
| Claims Journal
In 2024, U.S. economic losses from natural disasters surged to $217.8 billion—an 85.3% increase from 2023 and the highest since 2017. Hurricanes Helene and Milton, along with severe storms and droughts, were major contributors. Insured losses also rose by 36% to $112.7 billion. Early 2025 disasters, including the Los Angeles County wildfires, are expected to be among the costliest.
| Insurance Business America
The cyber reinsurance market grew significantly in late 2024, driven by increased capacity and competition. Despite ongoing cyberattacks, improved resilience measures in sectors such as healthcare and financial services have helped reduce losses.
| Insurance Business America
The cyber insurance market has slowed from its rapid growth due to rising competition, leading to rate reductions. Industry experts highlight the need to engage SMEs, which remain largely underinsured, as a key growth opportunity.
| Claims Journal
UnitedHealth Group disclosed that a cyberattack on Change Healthcare compromised the data of about 190 million individuals. The breach, attributed to the “Blackcat” ransomware group, exposed sensitive health information, Social Security numbers, and patient records.
| Claims Journal
The FDA flagged cybersecurity vulnerabilities in Contec and Epsimed patient monitors, warning they could be hacked and manipulated. While no attacks have been reported, healthcare facilities are advised to take precautionary measures.
| Claims Journal
Juan P. Delgado, a Washington man, has been ordered to repay over $60,000 after investigators found he had been working while claiming injury-related disability benefits. Surveillance footage showed him lifting heavy objects despite medical restrictions, leading to a guilty plea for workers’ compensation fraud.
| Claims Journal
The workers’ compensation industry is undergoing major changes due to technological advancements, stricter regulations, and a growing focus on mental health claims. AI is playing a bigger role in risk assessment and claims processing, requiring businesses to balance automation with human expertise.
| Claims Journal
Meta has agreed to pay $25 million to settle former President Donald Trump’s lawsuit over his ban from its platforms following the January 6, 2021, U.S. Capitol riot. Of the settlement, $22 million will go toward Trump’s presidential library, while the rest compensates other banned users.
| Claims Journal
Uber has filed a racketeering lawsuit against law firms, doctors, and pain-management clinics in Brooklyn federal court, alleging they staged minor car accidents to exploit New York’s no-fault insurance system. The lawsuit claims the scheme involved unnecessary medical procedures and fraudulent claims.
| Insurance Journal
MGM Resorts has agreed to a $45 million settlement over class-action lawsuits stemming from 2019 and 2023 data breaches, which exposed personal details of millions of customers. A federal judge granted preliminary approval in January 2025.
| Insurance Journal
A lawsuit filed in San Francisco federal court accuses Amazon of tracking consumers’ movements through their phones without consent and selling the data. The lawsuit alleges Amazon used its Ads SDK to collect extensive geolocation information.
| Claims Journal
A group of holdout creditors is urging a judge to reject Johnson & Johnson’s proposed $8 billion settlement, arguing it unfairly denies ovarian cancer victims the right to pursue their lawsuits over allegedly tainted baby powder. The settlement, part of J&J’s third attempt to resolve talc litigation through bankruptcy, would create a trust to distribute payments, but critics claim it lacks sufficient funding, has a flawed voting process, and inappropriately uses bankruptcy protections to shield a profitable company from lawsuits.
| Insurance Journal
Chinese AI startup DeepSeek faces widespread restrictions from governments and corporations over concerns about data security and potential ties to Beijing. Regulators in Italy, Ireland, and the UK are investigating its privacy risks.
| Claims Journal
Waymo is expanding self-driving vehicle tests to over 10 new cities in 2025, including San Diego and Las Vegas. The company continues to grow its ride-hailing operations despite regulatory scrutiny.
| The Insurer
Industry leaders debate whether generative AI will disrupt or enhance wholesaler relationships. AI could improve efficiency by enabling better access to product data, but concerns remain about job displacement and over-reliance on automation.
| Reinsurance News
Relm Insurance introduced FALTAWEB3, a risk-transfer solution designed to protect businesses from losses due to crypto exchange failures. The product is backed by Agio Ratings’ risk assessments and reinsurance support.
| Reinsurance News
Aon CEO Greg Case highlighted AI’s transformative role in insurance and reinsurance, with applications in risk management, analytics, and capital access. Aon is investing $1 billion in AI-driven analytics to enhance client decision-making.
A.J. Gallagher & Co. reported $1.47 billion in net earnings for 2024, a significant increase from $966 million in 2023, driven by strong performance in its brokerage and risk management segments. The company achieved 16 consecutive quarters of double-digit revenue growth, completed 48 mergers, including the acquisition of AssuredPartners, and saw orderly January 1, 2025, reinsurance renewals, positioning it for continued success in 2025.
Aon reported Q4 2024 net income of $716 million, a 44% increase from Q4 2023, and full-year net income of $2.7 billion, with total revenue up 17% to $15.7 billion, driven by 6% organic growth and the NFP acquisition. The company realigned into two segments—Risk Capital, which grew 13% to $2.5 billion, and Human Capital, which surged 41% to $1.6 billion—with CEO Greg Case emphasizing strong execution, cost efficiencies, and continued business growth across all solution lines.
| Axis
AXIS Capital reported $286 million in Q4 2024 net income and $1.1 billion for the full year, with both its insurance and reinsurance segments achieving underwriting profits despite elevated catastrophe losses and a combined ratio of 94%. The company saw strong premium growth, improved combined ratios, and a solid investment result of $764.4 million.
| Chubb
Chubb reported record net income of $9.3 billion for 2024, a 2.7% increase, with P/C underwriting income rising 7.1% to $5.9 billion and a combined ratio of 86.6, despite higher catastrophe losses of $2.4 billion. CEO Evan Greenberg acknowledged the California wildfires as a major tragedy, estimating $1.5 billion in Q1 2025 catastrophe losses, but emphasized strong global P/C growth and favorable market conditions for continued expansion.
| Reinsurance News
Chubb Limited has reported an estimated pre-tax net loss of $1.5 billion due to the recent Los Angeles wildfires, despite having reduced its exposure in California. This significant loss is expected to impact the company's first-quarter 2025 financial results.
| Everest Group
Everest Group expects full-year 2024 net income between $1.3 billion and $1.4 billion, despite $1.7 billion in total reserve strengthening, driven by social inflation and concentrations in U.S. casualty lines. The company has fortified its reserves, taken aggressive underwriting actions, and set a new target of mid-teens total shareholder return, though it will no longer provide detailed forward guidance.
| Carrier Management
Everest Group CEO Jim Williamson acknowledged that underwriting missteps and social inflation contributed to the company’s $1.7 billion loss reserve charge, prompting a decisive overhaul of its U.S. casualty book. The company has implemented a “one renewal standard” to restore accounts to profitability or exit them, shifting its focus to loss-sensitive accounts in industries like manufacturing and technology, shedding underperforming business, and strengthening broker relationships while maintaining firm pricing discipline.
| The Hartford
The Hartford reported Q4 2024 net income of $848 million, an 11% increase from Q4 2023, driven by strong P&C underwriting performance, premium growth, and higher investment income, though core earnings declined 7% to $865 million. Personal Lines saw significant profitability improvement, while Commercial Lines experienced 9% premium growth, with CEO Christopher Swift emphasizing the company's strong underwriting execution and momentum for continued profitable growth in 2025.
Marsh McLennan reported 8% revenue growth and 10% EPS increase in 2024, driven by strong financial performance, strategic acquisitions, and 17 consecutive years of margin expansion. The firm anticipates continued success in 2025
| Reinsurance News
W. R. Berkley CEO W. Robert Berkley, Jr. criticized the casualty reinsurance market’s slow response to social inflation and inadequate pricing discipline, leading the company to reduce its casualty reinsurance premiums by 15% in Q4 2024. Despite these concerns, Berkley remains optimistic about the primary casualty market, while the firm reported record net income of $1.76 billion and 9.6% growth in gross premiums written for the year.
W.R. Berkley reported record net income of $1.8 billion for 2024, a 29% increase from 2023, with Q4 net income rising 45% to $576 million. Despite higher catastrophe losses and a slight deterioration in the combined ratio to 90.5 in Q4, the company achieved record underwriting income of $1.1 billion and steady premium growth, with net premiums written in the insurance segment increasing to $2.6 billion.
The APCIA report, authored by University of Iowa professor Dr. Martin F. Grace, argues that over-regulation harms insurance markets by restricting competitive pricing, ultimately reducing availability and market stability. Through case studies in states like California, Florida, and New Jersey, the report highlights how strict price controls, while politically appealing, create long-term disruptions, making insurance less accessible for consumers.
| Carrier Management
RLI and W.R. Berkley provided contrasting views on the U.S. property insurance market, with RLI facing increased competition in the E&S property space leading to a 3% drop in Q4 property premiums, while W.R. Berkley reported 16% growth in property premiums and saw ongoing, though slowing, market tailwinds. Both companies achieved record underwriting profits, with RLI marking its 29th consecutive year of profitability and W.R. Berkley posting $1.1 billion in underwriting income, as they navigate evolving competition, catastrophe risks, and shifting demand in the sector.
| Insurance Journal
Howden, owned by firms including General Atlantic, HgCapital and Caisse de dépôt et placement du Québec, is in talks to acquire Risk Strategies, a Kelso-backed US brokerage, marking its expansion into the American retail market. This move follows recent industry consolidations by Gallagher and Marsh McLennan.
| Reinsurance News
Fitch Ratings expects Bermuda-based insurers and reinsurers to bear a significant share of losses from the California wildfires but does not anticipate rating impacts due to strong capital levels. While 2025 underwriting results are expected to deteriorate amid rising loss costs and pricing pressure, the Bermuda market’s 2024 combined ratio is projected at 90%. Fitch predicts further softening of reinsurance market conditions at midyear renewals despite continued favorable risk-adjusted returns.
| Reinsurance News
Marsh McLennan executives stated that while the full impact of the Los Angeles wildfires, with insured losses exceeding $30 billion, remains uncertain, it could temper risk-adjusted reinsurance rate reductions seen in the January 1 renewals. The company has launched a wildfire task force to assess the situation, and while primary insurance and reinsurance fire rates in California are expected to rise, CEO John Doyle emphasized the need for greater community resilience rather than relying on insurance subsidies.
| Reinsurance News
Fitch Ratings anticipates that Bermuda-based reinsurers will bear a significant portion of the insured losses from the recent Los Angeles wildfires, which have caused estimated damages between $20 billion and $30 billion. This expectation is based on Bermuda’s substantial share of the global property catastrophe reinsurance market. The financial impact on individual companies will vary depending on their specific exposure levels and reinsurance arrangements. Fitch also notes that the increased frequency and severity of such natural disasters may lead to higher reinsurance premiums and a reevaluation of risk models in the future.
| Reinsurance News
The High-Level Panel on Closing the Crisis Protection Gap has emphasized the essential role of both insurance and reinsurance in increasing the share of prearranged funding for disaster response. The panel advocates for a collaborative approach among governments, insurers, and reinsurers to develop innovative solutions that enhance financial resilience against crises.
| Insurance Business America
Liberty Mutual has updated its reinsurance Property Catastrophe Program, securing a $2.8 billion occurrence limit with a $1 billion retention, including one reinstatement, and a $500 million Aggregate Property Catastrophe Program to address both frequency and severity of losses. The company also reported strong financial performance for Q3 2024, with $892 million in net income, a significant improvement from the prior year, and announced Nicole Arangio as the new executive vice president and chief compliance officer, effective April 1, 2025.
| Reinsurance News
S&P Global Ratings projects strong earnings for the global reinsurance sector in 2024 and 2025, driven by favorable pricing, disciplined underwriting, and solid capital adequacy. However, challenges such as rising natural catastrophe losses, inflation, and financial market volatility persist. While reinsurers are expected to maintain profitability above their cost of capital, concerns remain over U.S. casualty lines, geopolitical tensions, and pricing pressures in specialty and short-tail lines. Structural improvements and alternative capital sources continue to support the industry’s resilience.
| Insurance Business America
Euler ILS Partners reports that the 2025 global reinsurance renewals remained stable, with moderate rate reductions in property catastrophe and retrocession markets, particularly in regions without recent losses. While some loss-affected contracts, such as those in the U.S. impacted by hurricanes and severe storms, saw rate increases of up to 45%, overall pricing remains near historic highs. Stable contract terms and strong market capacity are supporting a disciplined underwriting environment.
| Reinsurance News
S&P Global Ratings reports that the global reinsurance sector entered 2025 with strong capital positions, driven by robust 2024 earnings, leading to an orderly renewal season despite challenges from natural catastrophes and adverse casualty trends. While property catastrophe reinsurance faced downward pricing pressure due to ample capacity, concerns persist over casualty loss reserves and inflationary trends, especially as reinsurers are expected to absorb significant losses from the California wildfires, projected at $20 billion to $50 billion.
| Reinsurance News
Aon remains optimistic about the future of the reinsurance market after reporting 6% organic revenue growth in its Reinsurance Solutions business for Q4 2024, despite modestly negative rate impacts. Company executives emphasize the expansion of their global reinsurance capabilities beyond property catastrophe, highlighting dynamic client strategies such as aggregate covers and top-up programs. They project continued mid-single-digit or higher organic revenue growth in 2025.
| Insurance Business America
The Bermuda and Cayman Islands reinsurance markets are expanding, driven by increased use of sidecars to attract third-party capital and diversification into new lines of business. Regulatory changes are also shaping the landscape, with Bermuda strengthening governance requirements and the Cayman Islands seeking NAIC qualification to attract more U.S.-based reinsurance business. This highlights the need for careful compliance alignment among stakeholders.
| Insurance Journal
Governments and companies are restricting access to Chinese AI startup DeepSeek over data security concerns. Cybersecurity firms report widespread blocking due to fears of data leaks to Beijing. Regulators in Italy, Ireland, and the UK are investigating privacy risks, while cybercrime experts warn about DeepSeek’s potential misuse for fraud and hacking.
| Claims Journal
Waymo plans to expand autonomous driving tests to over 10 new cities in 2025, including San Diego and Las Vegas. Testing involves manual driving in urban areas before full autonomy trials. Amid regulatory scrutiny, Waymo continues its ride-hailing expansion and recently secured $5.6 billion in funding led by Alphabet.
| The Insurer
GenAI can both disrupt and enhance wholesalers’ relationships with agents and carriers. It allows sales and service agents to explore broad sets of product information using natural language, improving efficiency and boosting output.
| Reinsurance News
Relm Insurance has introduced FALTAWEB3, a specialized risk transfer solution protecting businesses from crypto exchange defaults due to insolvency, liquidation, or withdrawal halts. Backed by Agio Ratings’ risk assessments and Relm’s reinsurance infrastructure, it offers self-insurance options and expanded coverage to strengthen confidence in the digital asset industry.
| Reinsurance News
Aon CEO Greg Case highlighted AI’s “real and meaningful” opportunities in the insurance and reinsurance industry, emphasizing its role in improving analytics, risk management, and capital access. With a $1 billion investment in AI-driven analytics, Aon aims to enhance client decision-making, expand capital sources beyond the $4 trillion insurance pool, and accelerate solutions through public-private partnerships.
| Carrier Management
Executives from Delos Insurance Solutions, Kettle, and Faura shared insights on how the latest wildfires could reshape insurance strategies. The discussion, conducted before the fires were fully contained, covered new data models and risk assessment technologies aimed at mitigating future wildfire losses.
| Reinsurance News
Alexandra Cliff will assume the role of CFO at Lloyd’s on May 1, 2025, succeeding Burkhard Keese. With more than 20 years of experience, she has played a key role in strengthening financial performance, securing ratings upgrades, and driving investment transformation at Lloyd’s. Keese will continue in a strategic advisory capacity.
| Reinsurance News
Chubb’s Westchester division has launched three new business practices—Property, Casualty, and Financial Lines—to enhance its services. Matt Booker, Tom McLaughlin, and Andrea Larkin will lead these practices, while Dave Roberts will take on an expanded leadership role across operations, programs, and IT.
| Reinsurance News
AXIS Capital has named Gabrielle Folliard as Head of Claims for Global Markets. She will oversee claims operations and process improvements. Previously, she served as Chief Claims Officer at Canopius, bringing extensive experience in claims management and insurance law.
| Reinsurance News
MGT Insurance has launched MGT Specialty, an excess and surplus (E&S) insurance company targeting hard-to-place risks for small businesses. Industry veteran Chad Nitschke has been appointed as General Manager, leading the company’s expansion into the $95 billion surplus lines market.
| Reinsurance News
State Farm has processed over 10,100 claims for home and auto damages caused by the California wildfires, disbursing nearly $500 million in payments. The company has deployed its Catastrophe Response Team and local agents to assist affected residents. Industry-wide loss estimates range from $20 billion to $45 billion.
| Insurance Journal
Plymouth Rock Assurance has named Ethan Tarby as its permanent president and CEO, overseeing the Independent Agency Group. Tarby had been serving as interim CEO since June 2024. Inszone Insurance Services has also restructured its leadership, appointing Chris Tracy for California, Sara Evans for the Mountain West, and Francisco Saldaña for the Midwest as regional presidents.
| Insurance Journal
Willis has appointed Pat Donnelly as Head of Risk & Broking (R&B) for North America. He is expected to start in Q2 2025 and will report to Lucy Clarke, President of R&B. Donnelly previously held senior leadership roles at Marsh, JLT Specialty, and Aon, bringing deep expertise in specialty broking and retail business expansion.
Alan Gray was established in 1988 as a claims and audit advisory firm, and over the years has built a reputation as a cost-effective, reliable, and trusted resource to those involved in the management of risk.
