Excessive lawsuits driving up insurance premiums for US policyholders
Excessive lawsuits add more than $6,000 annually to premiumsInsurance NewsBy Josh RecamaraNov 30, 2025ShareRising insurance premiums are not only fueled by natural disasters and accidents, but excessive lawsuits, according to recent surveys from the Independent Insurance Agents & Brokers of America (Big I) and the Insurance Information Institute in partnership with Munich Reinsurance America.The Big I survey found that 64.3% of Americans are concerned about excessive insurance lawsuits affecting their premiums, and 80.3% believe their rates would rise even if they never filed a claim, according to a report fromThe Information. The Insurance Information Institute and Munich Re survey quantified this impact, estimating that excessive lawsuits add $6,664 annually to premiums for a typical family of four.The role of third-party litigation fundingA key factor driving these higher costs is third-party litigation funding, where investors bankroll lawsuits in exchange for a portion of any jury award. Michael Coffey, founder of Coffey Modica LLP, explained that such funding allows plaintiffs to endure longer trials, pursue more sophisticated legal strategies, and hold out for higher jury awards.Over the past decade, jury awards have tripled, increasing insurers’ costs and prompting higher premiums for all policyholders, even those who have never filed a claim.Excessive lawsuits create a ripple effect across the insurance industry. Insurers incur larger payouts, higher legal expenses, and extended settlement times. These costs are ultimately spread across policyholders, influencing premiums in sectors ranging from auto and homeowners to commercial lines.The growing prevalence of litigation funding means insurers are increasingly factoring potential legal exposure into pricing models, underwriting standards, and claims management practices, according to the report.Steps policyholders can takeExperts suggested several measures consumers can take to mitigate the impact of excessive lawsuits on premiums.For one, policyholders should document claims thoroughly, choose insurers with strong claims-handling reputations, conduct annual policy reviews with licensed agents, maintain a clean claims history, and ensure adequate coverage to reduce the likelihood of disputes escalating to litigation.Big I senior vice president Nathan Riedel (pictured) emphasized that regulatory reform is also critical. Broad consumer support for legal system reform can help curb abuses that drive insurance costs upward, underscoring the role policyholders play in shaping the market.By staying informed, reviewing coverage, and advocating for change, consumers can help manage their exposure to rising premiums linked to excessive litigation, according to the report.Related StoriesCyber insurance pricing softens - but underwriters aren't backing offHackers strike Ivy League schools already under political pressure
The Swedish Club expands into the Americas with New York office
Ian Duthie has been tapped to lead US operationsMarineBy Josh RecamaraDec 03, 2025ShareThe Swedish Club has announced the opening of its first office in the US, located in New York City, as part of a broader strategy to strengthen its international presence. The expansion represents a key milestone in the club's long-term global growth plan and aims to provide closer, more responsive service to members across the Americas. Establishing a local presence in one of the world's largest maritime markets is expected to improve operational efficiency, strengthen member relationships and enhance the club's competitiveness in the US and Latin American shipping and marine insurance markets.Ian Duthie appointed to lead US operationsIan Duthie (pictured) has been appointed regional executive director, Americas. Duthie brings more than 30 years of experience in marine insurance and commercial vessel operations, having previously served as commercial director Americas at Britannia P&I Club.In his new role, Duthie will oversee the development of the New York office, drive member engagement, build local partnerships and shape the Club's long-term market strategy in the Americas. His career also includes senior executive roles in international marine insurance and leadership positions with major US shipping organizations. Driving market presence and member engagementThe club’s move aligns with a broader trend of international insurers establishing US operations.The US market offers access to substantial premium volumes, diverse commercial and specialty lines, and established regulatory frameworks. Insurers expanding into the US benefit from local talent, stronger broker and MGA relationships, and the ability to respond quickly to market opportunities.Specialty and niche lines, such as marine and catastrophe insurance, are particularly driving foreign investment and office openings in the region.By operating directly in the US, The Swedish Club can respond more quickly to member needs, strengthen relationships with North American shipping clients, and expand its footprint in a highly competitive marine insurance market.'A major milestone'Thomas Nordberg, managing director of The Swedish Club, said the expansion "represents a major milestone" and emphasized that Duthie's expertise and market relationships will be key to establishing a credible, lasting presence in the Western Hemisphere. The New York office is expected to enhance service delivery, improve operational responsiveness and provide a platform for continued growth across the Americas, reinforcing the club's position as a leading global marine insurer.Related StoriesWhat is protection and indemnity insurance?Another corporate giant to enter the insurance business
Applied Systems sues Comulate for alleged IP theft via fake agency front
Competitors reportedly used a fraudulent insurance agency to unlawfully access its proprietary technologiesTransformationBy Kenneth AraulloNov 24, 2025ShareApplied Systems has filed a suit in the US District Court for the Northern District of Illinois, accusing Comulate and PBC Consulting of unlawfully accessing its software technologies and misappropriating proprietary information to expedite product development.The lawsuit stems from an investigation triggered by irregular activity detected within Applied's software development kit usage. Applied said that it engaged forensic specialists to examine the matter, which it says uncovered that Comulate had established a fraudulent insurance agency as a vehicle for accessing the technologies in question.According to Applied’s investigation, Comulate leveraged its trade secrets to accelerate its own product development through reverse engineering of critical components within Applied Epic. The effort reportedly targeted both enhancing existing product features and creating new offerings that would have been unavailable without access to Applied's intellectual property.Are you an insurance innovator? Tell us — we want to hear your storyRead more:Liberty Mutual allegedly denies $5.86 million settlement its lawyers negotiatedRich Cohan, Applied's chief legal officer, stated that "legal action is necessary to protect ourselves from further fraud, theft, misappropriation and potential data exposure for the interests of our customers, employees, partners and investors.""Respect for intellectual property and ethical business practices is fundamental to fair and healthy markets, and essential to promoting innovation that benefits our entire industry," Cohan said.Recent litigation has revealed similar gaps in contract enforcement and obligations for the insurance industry. In Utah, Berkley National Insurance Company sued Liberty Mutual after the insurer wrongly denied a $5.86 million settlement that Liberty Mutual's own coverage counsel had negotiated, forcing Berkley to cover the full amount.Read more:USLI demands Travelers cover $900k defense costs in new lawsuitElsewhere, disputes have emerged over defense cost allocation between insurers and over carriers' failure to fulfill defense obligations, such as USLI's ongoing dispute with Travelers over $900,000 in defense costs and American Guarantee's lawsuit against Gemini Insurance for failing to provide defense coverage despite policy obligations.Cohan noted that Applied has invested hundreds of millions of dollars over decades to develop its trade secrets. Applied seeks injunctive relief along with monetary damages and other available legal remedies related to the alleged misappropriation.Comulate respondsIn an emailed response to Insurance Business, Comulate disputed the allegations, calling them false and saying the action is intended to undermine a competitor rather than resolve a legitimate legal issue.According to Comulate, the lawsuit follows earlier attempts by Applied to acquire the company or build a competing product. Comulate counters that Applied is using the litigation to pressure shared customers, deter new deployments and restrict competition. It also alleges that Applied has a history of limiting data access in ways that affect brokers’ ability to choose technology providers.Comulate said that it plans to countersue, arguing the case concerns customer data rights and competitive access. It says the information Applied claims as trade secrets is publicly available, including on Applied’s own website, and that long-standing customer integrations contradict Applied’s fraud claims.Comulate states it remains well-funded and will continue serving clients, including major insurance brokers. It says customers using Applied’s systems should expect no operational changes and should seek legal advice if concerned about contract issues.Comulate also says it is open to de-escalation if Applied withdraws customer threats.Related StoriesLiberty Mutual allegedly denies $5.86 million settlement its lawyers negotiatedUSLI demands Travelers cover $900k defense costs in new lawsuit
"Now is the time": How brokers can capture soft-market savings for CRE clients
With capacity returning, brokers have a short window to maximize competition and secure better pricing, says CEOInsurance NewsBy Gia SnapeNov 26, 2025ShareCommercial real estate insurance rates are in soft-market territory, and brokers have a critical window to help clients secure meaningful savings.After several years of tightening conditions, carriers are posting double-digit decreases for high-quality commercial real estate (CRE) portfolios, according to Dan Garzella (pictured), founder and CEO of The Garzella Group.In an interview with Insurance Business, the brokerage leader stressed that early engagement, comprehensive documentation, strategic portfolio structuring, and specialized expertise can shift the market into clients’ favor.Are you an insurance innovator? Tell us — we want to hear your story“Now is the time,” Garzella said. “The opportunities are there. (CRE) owners just need the right broker strategy to capture them.”Why rates are falling, and for whomDuring the hard property market, admitted carriers struggled to implement the steep rate increases needed to maintain profitability. Regulatory approval delays effectively pushed much of the business into the excess and surplus lines market.But now that carriers are closer to rate adequacy, Garzella noted, capacity is returning to the market. “Both admitted and non-admitted markets are dropping rates, which is why you’re seeing 10% to 20% decreases,” he said.Not all commercial real estate assets benefit equally. Newer, well-maintained properties, particularly those built after 1990, are seeing the steepest reductions, according to Garzella. Portfolios with strong documentation, updated roofs, and minimal deferred maintenance also rise to the top of an underwriter’s stack. By contrast, older buildings, roofs older than 15 years, and distressed assets are still experiencing flat renewals.A relatively quiet hurricane season has reinforced positive underwriting results, but Garzella acknowledged that the tide could turn quickly.“We’re early in this soft-market cycle. Could a major disaster pause things? Possibly,” he said. For brokers and their CRE clients, this means the next six to 12 months represent prime time to renegotiate policies.Brokers’ playbook: Start early, be transparent, and strategizeAcross all property types, Garzella said one broker tactic is non-negotiable: start the renewal process early. Sending submissions 120 days out is ideal, especially for portfolios that require pre-inspection or granular site-level underwriting.“Underwriters need time, and brokers need time to negotiate,” Garzella stressed. “When clients wait until 30 days out, outcomes are consistently worse.”Transparency is equally critical. Ownership groups that provide full documentation, clear explanations of past losses, operational details, and maintenance histories give underwriters what they need to justify preferential pricing.Proper portfolio structuring is another strategic lever. Combining high-quality, non-CAT assets with properties in Florida, Houston, or other tier-one wind zones can backfire.“Carriers may love 80% of the portfolio and refuse to quote because of the 20% they can’t touch,” Garzella explained. “A smart broker separates cat(astrophe) exposure from preferred assets to maximize competition.”Additionally, claims history is no longer the primary gatekeeper, but credible data – including insured-to-value accuracy, roof age, and third-party analytics – now weigh heavily in underwriting decisions.Beyond delayed submissions and poor transparency, Gazella sees two recurring mistakes:Relying on seller’s insurance pricing during acquisitions – In cat-prone markets, seller rates can be far below market, leading to underwriting miscalculations and deal disruptions. Owners should always secure independent quotes.Not shopping around – Long-standing relationships could be holding brokers and their clients back. “Right now, there are deals out there,” Garzella said. “Owners should ask their broker for a full market shop, especially if they haven’t done one in years.”And while multi-year agreements remain rare, Garzella sees the soft market creating room for innovative program structures designed to reduce costs without sacrificing protection. He emphasized that brokers specializing in commercial real estate are best positioned to access these programs and negotiate aggressively.“The broker is telling a story,” he said. “The better the ownership group arms them with documentation and narrative, the better the outcome.”Related StoriesInsurance buyers see double-digit rate cutsCaptives 101 – how brokers can leverage this powerful alternative for insureds
Data-driven seas: Behind the strategic pivot towards data-driven underwriting in marine insurance
Insurers turning to real-time visibility and aggregation modeling to navigate unprecedented volatilityMarineBy Gia SnapeDec 01, 2025ShareGlobal marine insurance premiums hit a record $39.92 billion in 2024, representing a 1.5% rate of growth compared to 5.9% recorded in 2023, and 8.3% the year prior, according to the International Union of Marine Insurance (IUMI).Amid slowing growth, competition is intensifying. Insurers are sharpening their focus on one advantage that is proving decisive: data.From real-time cargo tracking to sustainability-linked vessel retrofits, the industry is undergoing a structural shift toward analytics-driven risk management, according to Sam Hellebush (pictured), president, US Marine at Intact Insurance Specialty Solutions.“Everybody is moving toward more data-driven models,” Hellebush told Insurance Business America. “It’s not parametrics, but it aligns with that trend. The industry is trying to use data to get away from reactive remedies and be proactive to avoid the claim in the first place.”Real-time visibility reshapes marine riskIn marine insurance, few challenges loom as large as understanding cargo aggregation: the concentration of insured values across ships, ports, and key waterways. Real-time tracking technologies, once cost-prohibitive, are quickly maturing to respond to mounting losses at sea, according to Hellebush.“The technology exists to track individual shipments; it’s quite expensive,” Hellebush said. “As the cost decreases, you’ll see more take-up on the insurance or insured side. That’s important for many reasons, one of which is sustainability and the environment.”Climate change intensifies the need for such visibility. With the vast majority of global commerce moving through coastal, climate-exposed locations, insurers face heightened vulnerability to storms, sea-level rise, wildfire smoke disruptions, and extreme weather–induced port congestion.“Marine insurers specifically have an outsized interest in managing aggregations and addressing climate change,” he emphasized.Intact Insurance has reportedly invested roughly $500 million into elevating data quality. That investment, Hellebush said, is already reshaping underwriting confidence.“As we collect more and more of that data, the level of uncertainty surrounding a risk decreases,” he said. “When we can make a quality decision more frequently, we can pass cost savings on to the consumer.”Geopolitical tension accelerates the data raceApart from climate risk, supply chain disrurption stemming from geopolitical tensions have underscored the limitations of traditional, retrospective underwriting.The wave of attacks by Houthis on commercial shipping in the Red Sea since late 2023, for example, has radically altered how insurers view maritime risk. According to market sources, war-risk premiums for transits through the Red Sea have surged from around 0.3% of a vessel’s insured value to as high as 0.7%.In early July 2025, two vessels were struck by Houthi drones, missiles and explosive boats. One vessel was sunk; several crew members were killed or went missing, prompting fresh waves of underwriters to pause cover for certain transits. In response, many global carriers have rerouted around Africa’s Cape of Good Hope, but this detour adds thousands of miles to voyages, increases fuel consumption and voyage time, and further complicates logistics.Sustainability mandates are reshaping insurer-client relationshipsCompounding the security-driven volatility is the growing pressure of climate change and decarbonization. More shipping firms are exploring hybrid-electric propulsion, alternative fuels like hydrogen or ammonia, and other sustainability retrofits, especially as regulatory pressure mounts globally, driven by the International Maritime Organization (IMO)’s 2050 net-zero goals.Hellebush said insurers like Intact are already incentivizing such proactive adaptation: when retrofits are done properly, insurers can “digest the risk” and offer more competitive pricing. This aligns insurer and insured interests over fewer toxic emissions, reduced long-term risk, and a lower probability of costly claims.“Part of supporting retrofits requires us to educate ourselves,” Hellebush said. “When retrofits are done properly, and in a best-in-class manner, we can digest the risk and offer more competitive pricing.”A softening market meets an analytics revolutionIUMI has warned that, despite record premium volume, growth in the marine insurance sector is slowing amid overcapacity, especially in the cargo and hull & machinery markets. In this environment, differentiation increasingly comes from risk prevention rather than price.“We’re going to continue incentivizing proactive behavior,” Hellebush said. “Ultimately, if we’re paying fewer claims, we can pass those savings on to the customer.”Heading into the 2026 renewal season, Hellebush stressed that disruption means opportunity. For brokers, he said, the winners will be those who understand how data, sustainability, and emerging technology are reshaping both risk profiles and pricing models.“The industry has always been dynamic,” Hellebush reflected, going back to the Lloyd’s coffee house days.“The pace of change is accelerating, but it’s not something we should shy away from. Brokers should view this ongoing change as an opportunity.”Related StoriesGlobal marine insurance premiums hit record levels, but momentum ebbsConflict is reshaping global shipping routes and increasing marine insurance risks
Major insurers seek approval to limit liability for AI-related claims - report
The move comes as AI tools increasingly enter business operationsTransformationBy Josh RecamaraNov 24, 2025ShareThree prominent insurance companies have submitted requests for regulatory approval to limit their liability for claims arising from artificial intelligence systems, including chatbots and other automated services. According to AIG, Great American and WR Berkley, the move reflects growing concern over the potential for multibillion-dollar claims tied to AI-related errors or harm. The proposal comes as AI tools increasingly enter business operations, from automated customer service agents to advanced decision-making systems. While these technologies can improve efficiency and reduce costs, they also introduce new and complex risks, theFinancial Timesreported.Are you an insurance innovator? Tell us — we want to hear your storyInsurers are proactively addressing these emerging exposures to ensure their policies remain viable in the face of potentially catastrophic AI-related losses. Limiting liability would allow these carriers to continue offering coverage while managing the uncertainty inherent in AI systems.AIG, Great American and WR Berkley are established leaders in the insurance market, and their coordinated approach signals a broader industry trend - traditional insurers are adjusting their underwriting practices to keep pace with rapidly evolving technology. For policyholders, this development may influence the types of coverage available, the terms of policies, and the premiums charged for AI-exposed risks. Businesses relying on AI may need to reassess their risk management strategies, considering both potential gaps in coverage and the need for specialized policies to address new liabilities, according to the report.The initiative also highlighted critical questions about accountability and risk allocation in the AI space.If insurers impose liability caps, responsibility for losses may shift more heavily on to businesses that deploy AI systems. This underscores the importance of governance, monitoring, and testing of AI tools to minimize potential errors and litigation exposure.While regulatory approval is still pending, the proposal marks a significant step in the insurance industry’s adaptation of digital innovation.Companies operating with AI must remain vigilant, keeping abreast of evolving insurance practices and potential changes to coverage options. Clear communication with insurers and proactive risk management will be essential as AI technologies continue to expand across sectors, the report said.Related StoriesAI sees the hazard, humans seal the deal: Inside ICW Group's safety strategyTech firm calls for insurance consortium to tackle AI ethics