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Insurance Market
EMEA Insurers on Neutral Sector Outlook for 2026
Fitch Ratings has assigned a neutral sector outlook for EMEA insurers in 2026, reflecting stable but constrained growth amid moderating inflation and softening investment returns. While non-life profitability is expected to improve through premium rate adjustments and cost efficiencies, life insurers face challenges from low interest rates and heightened competition, with overall capital positions remaining resilient.
Market Segment Report: Market Segment Outlook: US Personal Lines
A.M. Best's market segment report examines the outlook for the US personal lines insurance market. It highlights tariff-induced uncertainty but notes that carriers have not reported significant disruptions in claim costs so far.
The Baldwin Group and CAC Group announced a definitive agreement to merge, creating the largest majority colleague-owned, publicly-traded insurance broker in the United States, with $1.026 billion in upfront consideration and closure expected in Q1 2026. The merger combines Baldwin's middle-market distribution platform with CAC's specialty expertise in areas like natural resources and cyber insurance, projecting over $2 billion in combined 2026 gross revenue and Adjusted EBITDA exceeding $470 million, while being accretive to Baldwin's 2025 Adjusted EPS by over 20%.
Tiptree Announces Shareholder Approval of Proposed Merger of Fortegra and DB Insurance
Tiptree Inc. shareholders have approved the merger agreement for DB Insurance Co., Ltd. to acquire all outstanding stock of The Fortegra Group, Inc. in an all-cash transaction valued at approximately $1.65 billion, with about 81% of votes in favor. The deal is expected to close in mid-2026 subject to regulatory approvals and advances Tiptree's strategy to create shareholder value.
W. R. Berkley Corporation announced that Mitsui Sumitomo Insurance Co., Ltd. has acquired beneficial ownership of at least 12.5% of its outstanding common stock through previously announced agreements with the Berkley Family, without purchasing shares directly from the family or the company. MSI's shares will generally be voted per the Berkley Family's recommendations, with full investment completion expected in Q1 2026, as detailed in a March 2025 Form 8-K filing.
Why Reciprocal Insurance Exchanges Are Back in Fashion
Reciprocal insurance exchanges (RIEs) have experienced a resurgence due to third-party investor interest in fee-based management through attorneys-in-fact and capacity shortages in catastrophe-prone regions like the U.S. southern coast, with 36 new RIEs formed between 2017 and 2025, including 18 in the last 21 months as of late 2025. ALIRT's report indicates that while RIEs provide capital flexibility and address coverage gaps in high-risk areas, many newer ones exhibit financial vulnerabilities, low ALIRT scores often below 45, and risks from investor-backed surplus notes that could lead to moral hazard.
Reinsurance Market
AI's shift from hype to practical adoption gathers momentum, says hx CEO - Reinsurance News
AI is transitioning from hype to practical adoption in reinsurance, offering efficiency and profitability gains through data-driven underwriting and operational execution, with winners in 2026 being those who intelligently invest in technology and modernize infrastructure. Insurers are viewing AI as a collaborator that enhances human expertise, emphasizing upskilling, portfolio performance, and integration with insurtech ecosystems for sharper decisions in a competitive market.
AM Best Revises Outlooks to Stable; Affirms Credit Ratings of Conduit Reinsurance Limited
A.M. Best has revised the outlooks on Conduit Reinsurance Limited's A- (Excellent) Financial Strength Rating and "a-" (Excellent) Long-Term Issuer Credit Rating to stable from positive while affirming the ratings. This reflects the company's very strong balance sheet, adequate operating performance, limited business profile, and appropriate enterprise risk management, with expectations of sustained strong risk-adjusted capitalization and projected reinsurance revenue of approximately USD 900 million in 2025.
AM Best Upgrades Credit Ratings of CNA Financial Corporation and Its Subsidiaries
A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a+" (Superior) of Qatar Reinsurance Company. The outlooks for both ratings remain stable, reflecting the company's strong balance sheet, favorable operating performance, neutral business profile, and appropriate enterprise risk management.
Swiss Re targets a Group net income of USD 4.5 billion in 2026, with targets for all Business Units maintained or increased, including an elevated net income of USD 1.7 billion for Life & Health Reinsurance, while maintaining its multi-year IFRS return on equity target of more than 14%. The company refreshes its strategy to strengthen its core business through disciplined execution, differentiated propositions, and a leading position in key markets, leveraging a strong data foundation and AI to transform core processes for improved productivity and decision making, and plans to introduce a sustainable annual share buyback programme starting in 2026 at USD 500 million, alongside aiming for annual dividend per share growth of 7% or more over the next two years.
Commercial Lines
AM Best maintains stable outlook on U.S. commercial lines segment - Reinsurance News
A.M. Best maintains a stable outlook on the U.S. commercial lines insurance segment due to strong underwriting performance with composite combined ratios in the mid-90 percent range through the first three quarters of 2025, alongside risk-adjusted pricing and improved investment returns enhancing profitability. The outlook is supported by sound risk-adjusted capitalization and stable sub-segments like commercial property and workers' compensation, though near-term concerns include elevated casualty claims from social inflation, high property claims costs, and geopolitical risks affecting inflation and supply chains.
Ryan Specialty Underwriting Managers has launched Ryan Specialty Public Entity, a new managing general underwriter focused on providing casualty and auto physical damage solutions to publicly owned, tax-funded entities across the United States. The MGU operates on both insurance and reinsurance bases and is led by Chris Connacher as President, aiming to address challenges in this underserved market through innovative and responsive underwriting.
US commercial lines insurance trends revealed | Insurance Business
The November 2025 Ivans Index indicates continued upward pressure on US commercial insurance renewal rates, with most lines experiencing increases except for workers' compensation. Business owners' property (BOP) rates dipped slightly to 7.46 percent, general liability rose to 7.14 percent, and commercial property climbed to 8.08 percent, while umbrella policies saw a minor decline to 9.18 percent.
Litigation & Mass Torts
How Three New CMS Policies Impact Workers' Comp Claims
CMS has introduced three new policies affecting Workers' Compensation Medicare Set-Asides, including new Total Payment Obligation to the Claimant reporting requirements for settlements, changes to the Amended Review process by eliminating the one-year waiting period, and a cessation of reviewing $0 WCMSAs. These updates enhance CMS oversight of Medicare secondary payer compliance and streamline settlement practices in workers' compensation claims handling.
Guy Carpenter successfully sued two former employees, Celeste Choi and Dominic Lee, along with LK Insurance Services and its subsidiary LK Re, for conspiring to divert a major client, Samsung Fire and Marine Insurance, to the competitor while still employed, resulting in at least US$1.3 million in lost brokerage revenue. The Singapore High Court found all defendants liable for breaching duties of good faith, confidence, and non-solicitation covenants, with damages and legal costs to be assessed separately.
Judge Rules Bristol Myers Must Face $6.7B Lawsuit Over Delayed Cancer Drug
A U.S. judge rejected Bristol Myers Squibb's attempt to dismiss a $6.7 billion lawsuit alleging it misled shareholders of the former Celgene by delaying federal approval for three drugs, including the cancer treatment Breyanzi. The judge allowed some claims, including breach of contract, to proceed on behalf of the shareholders.
Lawsuit Over Burger King's Whopper Ads Set Back by Federal Judge
A federal judge in Miami rejected class certification for a lawsuit by 19 customers from 13 states accusing Burger King of misleadingly exaggerating the size of Whopper sandwiches in ads and menus. The decision highlighted differences in state consumer protection laws, the need for individualized proof of purchases, and variations in burger sizes and prices, requiring each plaintiff to pursue claims separately.
Litigation Finance Hits a Wall After Bets on Huge Gains Falter
Litigation finance, a $20 billion industry funding legal actions against corporate malfeasance, faces a downturn with investors pulling back capital due to regulatory hurdles, lower payouts, and longer trials. Firms like Therium Capital Management are outsourcing portfolios, Litigation Capital Management paused fundraising amid US tax uncertainties, and Burford Capital deals with delayed $16 billion settlements, raising concerns over reduced access for consumers and workers challenging corporate harms.
Lowe's to Pay $12.5M for Lead Paint Violations During Home Renovations
Lowe's Home Centers LLC has agreed to a proposed nationwide settlement with the Justice Department and the Environmental Protection Agency to resolve alleged violations of the EPA's Lead Renovation, Repair and Painting rule during contractor-led home renovations from 2019 to 2021. The company will pay a $12.5 million penalty and implement a corporate-wide compliance program to ensure hired firms and installers follow lead-safe practices, building on a prior 2014 settlement.
Product Liability Verdicts Are on the Rise but There Are Ways to Avoid Them
Product liability verdicts, especially nuclear verdicts, are surging due to plaintiffs' lawyers leveraging social, regulatory, and legal factors, alongside aggressive advertising, claims aggregators, and litigation funding that inflates settlement demands. Manufacturers and insurers can mitigate risks by avoiding incriminating internal communications, conducting early product hazard analyses, responding empathetically to injuries, verifying vendor contracts and insurance, monitoring social media for issues, preparing rigorously for trials, advocating for tort reform, and educating on the pitfalls of high-interest litigation funding.
Shot Employee Gets No Workers' Comp and No Employer's Liability
The 11th Circuit Court of Appeals ruled in favor of State Farm Fire and Casualty Co., reversing a lower court's $1.3 million judgment in a case involving a 2016 shooting of an employee at a Birmingham, Alabama grocery store. The court found that the employer's liability policy excluded coverage for injuries arising out of and in the course of employment, consistent with Alabama's workers' compensation statute, and the small employer was exempt from mandatory workers' compensation coverage under state law.
Emerging Risks & Technologies
Commentary: Hong Kong Fire Expected to be Credit Negative for (Re)Insurers
A fire in Hong Kong is expected to negatively impact the credit ratings of reinsurers and insurers involved. Property losses will likely dominate general insurance claims and highlight significant protection gaps in public liability, third-party liability, and professional indemnity coverage.
E-Deliveries Fueling Crashes, Traffic, Pollution and Worker Injuries in New York
A report by New York City Comptroller Brad Lander highlights how the growth of e-commerce and last-mile delivery services has led to increased traffic crashes, worker injuries, and air pollution, with 78% of nearby areas experiencing more injury-causing crashes and injury rates at facilities triple the national average. The issues disproportionately affect Black and Brown neighborhoods, prompting calls for city regulations on labor standards, liability, and emissions to address these hazards.
Geoeconomic fragmentation reshaping the global risk landscape
Geoeconomic fragmentation, driven by widening economic blocs, new tariffs, and geopolitical tensions, is reshaping global risk diversification, undermining international cooperation on issues like climate change and cyber threats, and potentially constraining insurability of peak risks while widening protection gaps. This leads to reduced insurance coverage costs, with Swiss Re estimating that a 15% US tariff rate could reduce global Property & Casualty premium growth by 0.7 percentage points and Life premium growth by 1.2 percentage points from 2025 to 2027, alongside inflationary pressures on claims in the US, though offset by growing demand for cyber and specialty insurance amid heightened uncertainties.
Insurance Customers Skeptical About AI Processes and Benefits
A J.D. Power survey reveals that 68% of insurance customers believe insurance companies receive most or all benefits from AI adoption, with only 26% viewing benefits as shared equally. Customers are comfortable with AI for routine tasks like claim status updates and billing but uncomfortable with it processing claims or pricing policies, leading to calls for limits on AI use in pricing until bias and ethical issues are addressed.
New York Times Sues Perplexity AI for 'Illegal' Copying of Content
The New York Times filed a lawsuit against Perplexity AI, accusing the startup of illegally copying, distributing, and displaying millions of its articles without permission, including paywalled content, to power its generative AI products. The suit also alleges trademark violations under the Lanham Act, where Perplexity's AI creates fabricated content and falsely attributes it to the newspaper using its registered marks, amid broader legal battles between publishers and AI firms over unauthorized use of copyrighted material.
Swiss Re addresses rising mental health claims with AI-powered Wysa app: Paul Murray
Swiss Re has partnered with Wysa to launch an AI-powered mental health app that provides employees and clients with 24/7 access to clinically validated tools, early intervention support, and anonymous coaching to address rising mental health claims in group life and health portfolios. The initiative reflects a proactive shift by reinsurers to use digital therapeutics and AI to reduce long-term disability costs and improve workforce wellbeing amid growing mental health trends globally.
Rivian to Recall Nearly 35,000 Delivery Vans Over Seat Belt Issue
Rivian Automotive is recalling nearly 35,000 electric delivery vans (model years 2022-2025) because repeated sitting on buckled seat belts can damage the pretensioner cable, potentially preventing proper driver restraint in a crash. The defect will be addressed via a free over-the-air software update to detect the issue, plus inspections and hardware replacement if needed, following a NHTSA investigation with no reported crashes or injuries.
Tech Industry Drive to Block State AI Laws Hits Wall in Congress
Tech companies including Meta Platforms Inc., OpenAI, Alphabet Inc.'s Google, and Andreessen Horowitz failed to secure a provision in the defense bill to preempt state AI regulations. House Majority Leader Steve Scalise stated it was not the appropriate vehicle, allowing state efforts to hold AI companies accountable for harms to proceed while tech firms argue such rules hinder innovation and U.S. competitiveness against Chinese companies.
The Rise of AI Reasoning Models Comes With a Big Energy Tradeoff
A new study by the AI Energy Score project reveals that AI reasoning models consume significantly more energy, using up to 100 times more power to respond to prompts compared to non-reasoning alternatives, as demonstrated by models from OpenAI, Google, Microsoft, and DeepSeek. The research highlights growing concerns over AI's strain on power grids and energy costs, urging smarter model selection for tasks to mitigate environmental and economic impacts.
The World's Plastic Glut Is Set to Get Much Worse by 2040, Study Finds
A Pew Charitable Trusts report forecasts global plastic pollution reaching 280 million metric tons annually by 2040 under current trends, with production surging 52% and emissions rising 58% to 4.2 gigatons of CO2 equivalent, fueled by fossil fuel-derived materials. It warns of severe health impacts, including 9.8 million years of lost healthy life from production-linked diseases, and urges reductions in production, safer chemicals, better design, and expanded recycling, though challenges persist for microplastics and low recycling feasibility.
People Moves
Bridge Specialty Group announces leadership updates
Bridge Specialty Group has expanded its western operations by launching Bridge Specialty Insurance Brokerage Property & Casualty, a national platform integrating brands like ECC, MacDuff, Peachtree Special Risk, and RLA to enhance expertise in complex wholesale brokerage. Key leadership appointments include Travis Blackford as Executive Vice President and Managing Director of BSIB, Bill Dow as Senior Vice President and Director of Brokerage Property for the west, and Brian Turnbull as Regional President for the West in Contract Binding and Light Brokerage.
Everest Announces Key Leadership Appointments | Everest
Everest Group has appointed Katy Bradica as Group Chief Actuary and Attila Kerényi as Group Chief Risk Officer, both effective early 2026, to strengthen its executive leadership in underwriting and risk management. Bradica, with 25 years of experience from roles at AXA and AIG, will oversee global actuarial functions including pricing and analytics, while Kerényi, a CFA Charterholder from Swiss Re, will lead enterprise risk management and capital resilience.
Keystone Positions for Next Stage of Growth with Leadership Transition
Keystone Insurance announces a leadership transition to position the company for its next stage of growth. The change involves key executives stepping into new roles to drive strategic expansion and innovation in the insurance sector.
Longtime WTW Cyber Risk Leader Heads to Marsh
Marsh has hired Tom Srail, who spent 21 years at WTW as executive vice president of the global cyber risk team, to lead cyber analytics and digital infrastructure for the U.S. and Canada. Srail, a member of the U.S. Department of the Treasury's Advisory Committee on Risk-Sharing Mechanisms, will enhance Marsh's client services in cyber risk management.
Marsh Change in Executive Directorship Roles
Marsh Limited announces the appointment of David Cohen as President of Global Facultative Reinsurance, effective immediately. Cohen brings over 25 years of reinsurance experience from roles at PartnerRe, where he served as Senior Managing Director in Global Facultative Reinsurance.
Michael Anderson promoted to CEO of Reinsurance Technology Company, Demex
Demex, a technology-enabled reinsurance solution provider, has promoted Michael Anderson to CEO after four years as Chief Growth Officer, alongside appointing Matthew Coleman as President of Reinsurance and Charlie Eadie as Chief Growth Officer, with outgoing CEO Bill Clark joining the advisory board. This internal leadership transition supports the company's shift to market expansion, highlighted by over $140 million in purchased cover, hundreds of millions in capacity for 2026 renewals, and growing international interest in its severe convective storm reinsurance solution.
People Moves: Neumann Appointed Howden US Financial Lines Claims Leader
Howden has appointed Elizabeth Neumann as executive vice president and financial lines claims leader for its U.S. operations, based in New York. Neumann previously served as U.S. financial lines legal and claims practice leader at CAC Specialty and brings experience from roles at AXIS Insurance Company and CNA Insurance.
Steven Beard is appointed CEO of Arrowhead Intermediaries International - Arrowhead Intermediaries
Arrowhead Intermediaries has appointed Steven Beard as Chief Executive Officer, International, effective February 2026, with him based in London and reporting to CEO Steve Boyd. Beard, who joins from his role as Group President at Charles Taylor and has extensive experience in senior positions at firms like Ardonagh Group, Corant Group, RFIB, Xchanging, Agilisys, Globalwave, and Redwave, will oversee the company's international operations including entities like Nexus and Bridge Specialty International as part of one of the world's largest delegated authority platforms.
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.
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