Nov 23-29, 2025

Insurance Market

Beazley reveals new Bermuda platform as 9M'25 premiums rise‍

Beazley has launched a new Bermuda platform backed by a $500 million investment to drive growth starting in 2026, targeting alternative risk transfer solutions such as insurance-linked securities, structured reinsurance, and captives, alongside expansions in specialty reinsurance and property lines to capitalize on its established expertise. For the first nine months of 2025, the company reported gross written premiums of $4.67 billion, reflecting a 1% year-on-year increase, and net written premiums of $3.927 billion, up 4%, with specialty risks growing 3% to $1.437 billion despite a 4% average rate decline, as CEO Adrian Cox highlighted a focus on disciplined underwriting for sustained profitability in shifting markets.

‍

Data centres could generate $5–$11bn in annual premiums: Goldman Sachs - Reinsurance News‍

Goldman Sachs analysts project that data centers could generate $5 billion to $11 billion in annual insurance premiums over the next several years, driven by a 20% plus annual increase in construction and hyperscaler capital expenditures from 2025 to 2027, with over 75% of the opportunity stemming from the build-out phase in U.S. admitted markets. This growth potential, aligning with Aon's forecast of $10 billion in new premium volume by 2026, positions brokers like AON and WTW to capture up to $1 billion in revenue, while insurers such as AIG and Travelers demonstrate strong underwriting appetite amid risks of captives emerging if the industry fails to meet tech giants' needs.

‍

Rising costs of weather disasters challenge global economies, says Munich Re - Reinsurance News‍

Munich Re's report indicates that eight of the ten largest industrialized nations, including the United States, Germany, and India, face substantially higher losses from weather-related disasters as a share of gross national income than in the 1980s, with recent annual averages reaching 0.54 percent in the US, 0.29 percent in Germany, and 0.28 percent in India due to intensified events like floods, storms, and wildfires fueled by climate change. The analysis highlights the escalating economic burden on global economies and urges greater investments in prevention and resilience strategies, pointing to China's effective flood-management systems as a model for curbing long-term damage.

‍

Reinsurance Market

Clean data key to a successful AI-driven reinsurance industry: Ben Rose, Supercede‍

Ben Rose, Co-Founder and President of Supercede, emphasizes that the reinsurance industry's current poor-quality data, likened to undrinkable water, prevents the successful adoption of AI, as it leads to unreliable outcomes and exacerbates existing challenges. He highlights that achieving clean, reliable data through growing collaboration and shared infrastructure among clients could unlock AI's potential in reinsurance, positioning Supercede as a key provider of validated data to support this transformation.

‍

Lloyd’s Grants Approval for Ariel Re Syndicate 2006 - ArielRe‍

Lloyd’s has approved the establishment of Ariel Re Syndicate 2006 effective immediately, granting Permission to Underwrite for the 2026 Year of Account after confirming the business plan and syndicate ECA on 9 September 2025. The syndicate serves as a balanced reinsurance platform focusing on specialty lines and property reinsurance, utilizing Ariel Re’s expertise in marine, energy, cyber, transition, and renewables to emphasize underwriting excellence, advanced technical capabilities, and delivery of capital solutions with attractive returns.

‍

MAPFRE RE secures €125 million in its return to the catastrophe bond market‍

MAPFRE RE has re-entered the catastrophe bond market with a €125 million issuance through Recoletos Re DAC, providing three-year protection for its European risk portfolio against extreme wind events based on PERILS AG-reported losses, following a similar transaction in 2024. The deal, arranged by AON Securities, attracted strong investor interest that expanded it from an initial €100 million target and secured a more favorable pricing, underscoring confidence in MAPFRE RE's underwriting expertise.

‍

Re authorises $134m in reinsurance for deployment at Jan renewals‍

Re, a decentralized reinsurance protocol, has authorized $134 million in reinsurance capital across programs covering commercial auto, general liability, property, and workers' compensation for deployment during the January 1st renewal season. This initiative, which includes both new and renewed programs, reflects increasing confidence from insurers and capital providers in Re's blockchain-based infrastructure, supporting assured policy issuance and long-term marketplace growth.

‍

Commercial Lines

‍Best Quarter in a Quarter Century, Says S&P Q3 Analysis of US P/C‍

The U.S. property/casualty insurance industry recorded its best quarter in at least 25 years in Q3 2025, achieving a combined ratio of 89.1 driven by minimal catastrophe losses at 1.7 points of impact, robust auto and homeowners results, and a record-low loss adjustment expense ratio under 8.8 points. Analysts at S&P Market Intelligence caution that this peak performance may prove unrepeatable amid decelerating premium growth, uncertain economic conditions, and the expected return of elevated catastrophe activity, alongside emerging pressures from rising loss ratios in auto liability, commercial liability, and workers compensation.

‍

‘Clear Soft Market Conditions’ for Commercial P/C Lines in Q3, Says CIAB‍

The Council of Insurance Agents & Brokers quarterly survey for Q3 2025 reveals clear soft market conditions in commercial property/casualty insurance, with overall premiums rising just 1.6% across all account sizes, down from 3.7% in Q2, as competition intensified particularly for small business accounts. Premium decreases were recorded in lines including business interruption, commercial property, cyber, D&O, employment practices, and workers compensation, with cyber seeing the sharpest drop of 2.6% amid a 43% increase in underwriting capacity, while commercial property premiums fell 0.2% for the first time in eight years due to new market entrants and improved reinsurance.

‍

Receding Tides: How Will Market Softening Impact Valuations and M&A? - MarshBerry‍

Public insurance brokers have experienced a 21.0% decline in equity values since March 2025, driven by slowing organic growth as the hard market cycle ends and P&C rate increases drop from 11.7% in Q3 2020 to 1.6% in Q3 2025. Despite this, private brokerage valuations remain stable at around 14x to 19x EBITDA, and M&A activity is expected to increase as firms rely on acquisitions to offset reduced organic growth, supported by lower interest rates and sustained demand.

‍

Trading Statement - 07:00:13 25 Nov 2025 - BEZ News article | London Stock Exchange‍

The trading statement from Beazley plc for the nine months ended September 30, 2025, highlights strong premium growth of 12% to $4,144 million, driven by robust performance across all lines of business including property, contingency, and specialty risks, alongside a gross loss ratio improving to 65% from 72% in the prior year. The company also reported positive underwriting profit momentum, with management expecting full-year gross premiums to reach approximately $5.7 billion and continued favorable market conditions supporting disciplined growth and profitability.

‍

UPS, FedEx Scramble to Shore Up Networks Drained by Deadly Crash‍

Following a fatal UPS MD-11 cargo jet crash near Louisville, Kentucky on November 4, 2025, that killed 14 people and led to an FAA-mandated grounding of all 167 MD-11 aircraft due to engine pylon fatigue issues, UPS and FedEx are facing significant air cargo capacity shortages during the holiday rush. The companies are mitigating disruptions by chartering third-party aircraft, leveraging truck networks and commercial plane cargo holds, accelerating MD-11 retirements, and adjusting operations, with expectations that holiday deliveries will remain on track amid stable retail inventories and modest peak volumes.

‍

Litigation & Mass Torts

FirstEnergy Ordered to Pay More Than $250M for Bribery Scheme‍

The Public Utilities Commission of Ohio has ordered FirstEnergy to pay more than $250 million in penalties and restitution for its role in a bribery scheme, including nearly $187 million to be refunded to customers and about $180 million for misusing grid modernization fees collected from ratepayers. The unanimous decision concludes three delayed regulatory investigations tied to the 2020 scandal, where FirstEnergy admitted to paying $60 million in bribes for a $1 billion nuclear bailout, prompting reforms in company ethics, executive firings, and a separate $230 million federal settlement to avoid prosecution.

‍

More Federal Legislation Introduced to Tackle Third-Party Lit Funding‍

Senator John Kennedy, R-La., introduced the Protecting Our Courts from Foreign Manipulation Act on November 24, 2025, to ban foreign governments and sovereign wealth funds from funding U.S. litigation, mandate disclosures of foreign funding to courts and the Department of Justice, and require oversight by the DOJ's National Security Division. The legislation, backed by the American Property Casualty Insurance Association, targets national security threats and escalating litigation expenses, with a companion House bill, H.R. 2675, recently advancing through the House Judiciary Committee.

‍

Most Consumers Aware and Worried How Litigation Increases Insurance Cost‍

A survey by the Independent Insurance Agents & Brokers of America reveals that 64.3% of insurance consumers aged 25 and over are worried about lawsuits driving up their premiums, with nearly three-quarters believing attorneys and law firms benefit most from such litigation. While about 40% of respondents are unfamiliar with third-party litigation funding practices that exacerbate these costs, a majority support state and federal government-led reforms to curb unnecessary lawsuits and promote accountability.

‍

Musk’s X Ending $90M Lawsuit Against Law Firm Wachtell‍

Elon Musk's social media platform X has dismissed with prejudice its 2023 lawsuit against elite law firm Wachtell, Lipton, Rosen & Katz, seeking to recover most of a $90 million fee paid for the firm's successful efforts in defeating Musk's attempt to abandon the multibillion-dollar Twitter acquisition. The dismissal, filed last week in San Francisco Superior Court without explanation and ahead of a December hearing following a judge's arbitration order, drew a statement from Wachtell confirming no settlement and asserting the suit's lack of merit.

‍

OpenAI Says ChatGPT Not to Blame in Teen’s Death by Suicide‍

OpenAI has denied liability for the suicide of 16-year-old California student Adam Raine in a November 26, 2025, court filing, asserting that a review of his ChatGPT interactions revealed no causation and that the chatbot directed him to seek help over 100 times amid his long-standing suicidal ideation. Raine's family sued OpenAI and CEO Sam Altman in August 2025 for wrongful death, product liability, and negligence, alleging the AI guided him in tying a noose and drafting a suicide note, prompting the company to introduce new safeguards for teen users like parental controls and distress alerts.

‍

Starbucks to Face Shareholder Lawsuit Over Surprise Sales Decline‍

Starbucks must defend against a shareholder lawsuit alleging it misled investors by overstating the success of its reinvention plan in a January 2024 analyst call and regulatory filing, which downplayed risks to sales in the U.S. and China despite impending declines. The case, advanced by U.S. District Judge John Chun in Seattle, allows claims to proceed against former CEO Laxman Narasimhan for the April 2024 earnings miss that triggered a 16 percent stock plunge and $16 billion market value loss, while Starbucks vows to contest the allegations amid ongoing turnaround efforts under new CEO Brian Niccol.

‍

Warner Music Settles Lawsuit With AI Music Startup Suno‍

Warner Music Group has settled its copyright lawsuit against AI music startup Suno, which was accused of using protected material without permission, and the two have formed a partnership to collaborate on music creation and revenue models. Under the agreement, Suno will implement paid downloads for user-generated tracks with usage limits, allow opt-in access to WMG artists' likenesses and compositions for AI generation, and integrate with Songkick, a live music platform recently acquired from Warner, to enhance artist-fan connections.

‍

Emerging Risks & Technologies

‍Ageing, AI and the revival of industrial policy – structural regime shifts redefine global economy, says Swiss Re Institute | Swiss Re‍

The global economy is experiencing structural regime shifts driven by ageing populations, the rise of artificial intelligence, and the resurgence of industrial policy, resulting in stabilized real GDP growth of 2.5% in 2026 and 2.6% in 2027 alongside persistent inflation above pre-2020 levels from fiscal expansions and industrial investments. These transformations are reshaping the insurance sector, with ageing boosting demand for longevity and health products, AI enabling operational efficiencies through 3 to 8% of IT budgets, and industrial policies heightening government involvement in key areas like semiconductors and AI infrastructure, which present both opportunities and risks.

‍

As Infant Botulism Cases Climb to 31, Recalled ByHeart Formula Remains on Shelves‍

As cases of infant botulism linked to ByHeart formula climb to 31 hospitalizations across 15 states since August, with the most recent on November 13, laboratory tests have confirmed contamination with Clostridium botulinum bacteria in some samples, prompting the New York-based company to notify the FDA and investigate the source while urging consumers to discard all products. Despite a nationwide recall, state officials in Oregon, Minnesota, and Arizona have found the formula still available on store shelves, leading to removals and warnings that no affected product should be sold or consumed, with federal inspections ongoing at manufacturing sites and a new California hotline launched to handle surging inquiries from worried parents.

‍

Cyber insurance market to grow at 'great speed over 2026,' says Cowbell

‍Cowbell anticipates the cyber insurance market will expand at great speed throughout 2026, propelled by insurers evolving toward risk partnerships that integrate dynamic underwriting, real-time cyber posture visibility, and bundled incident response services to counter escalating threats like ransomware, data theft, and AI-enhanced attacks targeting SMEs in sectors such as manufacturing, healthcare, and education. Despite persistent challenges including non-malicious system failures, sophisticated phishing via deepfakes, and emerging quantum-aware tactics, experts like Simon Hughes and Claud Bilboa emphasize proactive investments in key controls, annual policy reviews, and AI adoption safeguards to mitigate operational disruptions and regulatory costs.

‍

Hackers Strike Ivy League Schools Already Under Political Pressure‍

Hackers have breached five Ivy League universities, including Dartmouth, Harvard, Princeton, the University of Pennsylvania, and Columbia, over the past three weeks, stealing sensitive personal data from donors and students, such as Harvard's fundraiser information tied to its $1 billion annual efforts and Dartmouth's files exposed through a patched Oracle Corp. software vulnerability from August. These attacks, potentially connected by similar tactics and occurring amid political scrutiny from the Trump administration over antisemitism, admissions, and diversity initiatives that have frozen research funds and threatened accreditation, underscore universities' appeal as targets due to their valuable data and comparatively weak cybersecurity defenses against threats from cybercriminals and state actors in China, Russia, and North Korea.

‍

HDI Global Launches New Cyber Product “Cyquins”, And Achieves AWS Cyber Competency Partner Status

‍HDI Global has launched Cyquins, a new cyber insurance product designed to offer comprehensive coverage for cyber risks, including advanced features for rapid response and mitigation in the evolving threat landscape. Additionally, HDI Global has attained AWS Cyber Competency Partner status, recognizing its expertise in delivering secure cloud-based cyber solutions and strengthening its position in the digital risk management market.

‍

Insurance Customers Skeptical About AI Processes and Benefits‍

A J.D. Power survey indicates that 68% of insurance customers believe insurers capture most or all benefits from AI adoption, with only 26% viewing gains as equally shared and significant discomfort around AI handling claims (47%) or fully pricing policies (15%). While customers accept AI for routine tasks like claim updates (24%) and billing (23%), a third call for restrictions on its use in pricing until ethical safeguards ensure fairness and compliance, underscoring the need for insurers to build trust through transparent communication.

‍

Insurer pulls back from cyber market amid rising hacks and price war‍

Beazley has reduced its cyber insurance exposure, reporting an 8% decline in cyber gross written premiums to $848 million for the first nine months of 2025, as rising ransomware claims and falling premiums have made parts of the business, particularly in the US, unprofitable. While competitors such as Chubb and AIG continue to grow their cyber books, Beazley’s management has chosen to prioritize margins over volume, warning of potential extreme pricing volatility if the broader market fails to respond to worsening loss trends.

‍

Lack of discipline in unprofitable US cyber market is somewhat surprising: Beazley CEO

‍Beazley CEO Adrian Cox described the US cyber insurance market as unprofitable and softening due to an active claims environment, with the company's cyber premiums declining 8% year-to-date to $848 million in the first nine months of 2025 amid persistent rate reductions in North America since 2022 despite rising ransomware claims frequency and severity. Cox expressed surprise at the lack of market discipline, noting Beazley's strategy to maintain flat rates and prioritize profitability by shrinking its US cyber book if necessary, while hoping for a broader market correction to prevent sharper pricing swings in the future.

‍

Massive Wildfire Liabilities Push Utilities to Use AI to Stop Blazes‍

Facing massive liabilities from deadly wildfires that have led to lawsuits, fines, and even bankruptcy for companies like PG&E, U.S. and European utilities are turning to AI startups such as Overstory and Rhizome to analyze satellite imagery and grid data for targeted, low-cost risk mitigation measures like trimming specific trees and replacing poles. These technologies, including Overstory's tree health assessments and Rhizome's gridFIRM model, help prioritize interventions amid worsening climate-driven threats, with fast-trip safety settings preventing about 80% of potential ignitions, though full elimination of risks would require prohibitively expensive underground burial of lines.

‍

New Female Crash Test Dummy Gets Key Government Endorsement‍

The U.S. Department of Transportation has endorsed a new female crash test dummy that more accurately reflects women's anatomy, including differences in the neck, collarbone, pelvis, and legs, with over 150 sensors to better assess injury risks, as women face a 73% higher likelihood of injury in head-on crashes and 17% greater chance of death in car accidents compared to men. While the current 1978 male-based model and its rudimentary female counterpart have been standard for decades, automakers and insurers express skepticism about potential exaggerations of risks, though advocates and bipartisan lawmakers urge swift adoption to enhance safety ratings and save lives.

‍

People Moves

‍1B-i appoints Dr. John Morley as CEO, establishes operational entity - Reinsurance News

‍1B-i Holdings Limited has appointed Dr. John Morley as its inaugural CEO and established 1B-i Management PTE Ltd as its operational entity to oversee global operations, underwriting services, technical development, and product governance. The company is seeking regulatory approval for its risk-carrying entity while building a team of experts in insurance, reinsurance, and technology to deliver specialized products for digital assets, such as company insurance, Directors and Officers coverage, and Cryp-Sure transaction-level insurance.

‍

NFP Appoints Tom Gillingham, Head of Commercial Risk, and John Mahoney, Head of Programs‍

NFP has appointed Tom Gillingham as Head of Commercial Risk and John Mahoney as Head of Programs to bolster its commercial insurance offerings. Gillingham, with over 25 years of experience from senior roles at Aon and Marsh, will drive strategic growth in commercial risk solutions, while Mahoney, drawing on 30 years at Chubb and other firms, will lead program development to enhance client value and innovation.

‍

QBE Re expands into structured reinsurance with new hire - QBE Re‍

QBE Re has appointed Robert Turner as Global Head of Structured Reinsurance to spearhead its expansion into this growing sector. With over 30 years of experience from positions at AXA XL, AIG, and JLT, Turner will focus on enhancing broker and cedant relationships to deliver tailored, innovative risk transfer solutions that address clients' changing demands.

‍

Swain in as Interim CEO of Crawford, Verma Heading to Alright‍

Crawford & Company announced that CEO Rohit Verma will step down at the end of 2025 to assume the CEO role at Alight Inc., a provider of cloud-based human capital and technology-enabled services. W. Bruce Swain Jr., the company's current CFO with over 30 years of tenure, will serve as interim president and CEO starting January 1, 2026, while Holly Boudreau, senior vice president of tax, treasury, and finance transformation, will succeed him as CFO.

‍