Category: Insurance

Recently, many leading insurers have applied transformative solutions to enhance their cyber products. With the cyber insurance market projected to double to $29B by 2027, we explore what constitutes market-leading cyber claims management.  

In this blog we’ll delve into the complexities of responding to cyber claims, the essential skills required by claims adjusters, and the measures insurers must take to achieve excellence in cyber claims management. 

The complexity of cyber claims  

The most comprehensive cyber coverage encompasses a broader range of perils than most other insurance products: 

1. First-party coverages: This includes damage to devices, network damage, physical property damage, and damage to digital assets. It also covers damage to or theft of intangible assets, theft of funds, and costs associated with recovery, restoration, and remediation. Financial losses due to business interruption, lost business opportunities, reputational damage, ransomware, and extortion are also included. Additionally, expenses related to investigations, notifying affected third parties, and damage to intellectual property such as patents and trademarks are covered. 

1. Third-party coverages: These coverages include contractual and legal liability, regulatory proceedings, and multimedia liability. They also encompass civil damages, compensation, payment card loss, errors and omissions, technology professional liability, miscellaneous professional liability, and network security and privacy liability. 

When the policyholder of a comprehensive cyber product is a large multinational corporate business with both B2B and B2C customers, handling a potential large-scale claim becomes highly complex for claims adjusters. Cyber claims, akin to oil spillages, are catastrophic by nature, recognize no geographical boundaries, and are continuously evolving and unpredictable. Cyber breaches can critically impact businesses, societies, and essential national infrastructure, including hospitals, water and sewage systems, and airports. 

The complexity, however, extends further. Cyber claims pose unique challenges to today’s claims adjusters due to the intricate technical nature of the claims, which involve IT systems, both tangible and intangible assets, cybersecurity protocols, digital forensics, and the constantly changing regulatory and legislative landscape concerning data protection, AI protection, and privacy law across all affected jurisdictions. 

Furthermore, a cyber claims adjuster must be adept at instructing and managing a diverse group of specialists, ranging from IT forensic experts, data experts, and forensic accountants to credit monitoring experts, legal breach counsel, public relations experts, crisis management professionals, and ransomware attack experts. 

The skills of a cyber claims adjuster 

The skills of a cyber claims adjuster are multifaceted and require a detailed understanding of various aspects: 

Knowledge Requirements: A cyber claims adjuster must possess advanced, industry-recognized qualifications and typically have a background in Errors & Omissions (E&O), Trade Credit, Political Risk, and/or Crisis Management. They need practical knowledge of applying first and third-party cyber coverages, reserving, evaluations, and risk management processes, usually gained from previous roles in cyber claims or broker advocacy. 

Experience Requirements: The industry faces challenges due to a limited talent pool. It’s crucial for adjusters to understand the roles and responsibilities of various experts involved in cyber claims. Their practical experience is vital for effectively overseeing and managing these experts to ensure rapid response to claims, effective mitigation actions to prevent further losses, and complete resolution of claims. Cyber claims have grown in complexity and quantity, but many adjusters come from auxiliary lines of business. A key skill often missing is proficiency in IT systems, cybersecurity protocols, digital forensics, intangible assets, and a deep understanding of constantly evolving regulations and legislation across IT, AI, GDPR, and consumer privacy. This is particularly critical when insurance covers technology-based companies, where coverage is often bespoke and niche. 

Operational Responsibilities: Adjusters must effectively determine the existence, cause, and scope of a breach and manage key activities in cyber claims management. This includes selecting and managing the appropriate incident response team, assessing ongoing or concluded breaches, evaluating the impact on the customer’s business and assessing breaches of cybersecurity protocols. It also covers responding in compliance with current data protection and privacy regulations, identifying and responding to fraud triggers, and providing feedback into underwriting risk controls and actuarial tables. 

Customer Segment Knowledge: Proficient knowledge and experience with a range of customer segments, from SMEs to multinational and large corporate clients, are also essential for a cyber claims adjuster. Because Cyber is such a swiftly evolving product and still sub-scale to many other lines, insurers face the difficult question of whether to organize their Cyber claims team as a line of business CoE or whether to adhere to existing CoEs centred around SME, mid-market, multi-national clients etc. 

Emerging risks and challenges 

The task of determining the existence, cause, and scope of a breach is becoming increasingly complex due to the extensive coverage of cyber insurance, rapid technological and data platform evolution, the catastrophic and systemic risks associated with breaches, and the implications of Gen AI. Gen AI presents new opportunities and challenges, enhancing capabilities for both cyber attackers and defenders, leading to more sophisticated attacks almost daily.  

The strategic choices to become market-leading in cyber claims  

In conclusion, there are four key components to get right:  

1. Insurers need a claims application that supports the adjusters in effective management of the incident response team and experts. The application needs to be fit-for-purpose for cyber, which means a comprehensive master data management to orchestrate the 100+ relevant cyber claims data points as well as an expert-specific permission access to documents.
2. Insurers need a comprehensive and continuous development program to remain proficient in evolving cyber risk, technology changes and especially the opportunities and challenges that Gen AI represent. 
3. Insurers need a comprehensive cyber saferoom that provides a secure space for pre-incident advice and training, incident response planning, notification services, etc. The saferoom must have the right guardrails that support collaboration with the independent legal breach counsel.
4. Insurers need a continuous feedback-loop of claims master data that inform the actuarial tables and the risk controls in underwriting. Market-leading insurers achieve this with a scalable infrastructure and architecture, so that the technical pricing across all variables is informed in real-time based on loss history.  

 

By Loretta Worters, Vice President, Media Relations, Triple-I

Lightning-related homeowners’ insurance claims totaled $1.04 billion in 2024, a 16.5 percent decrease from 2023, according to new data from the Insurance Information Institute and State Farm, the largest writer of homeowners’ insurance in the United States. The number of lightning-caused claims also fell significantly, dropping 21.5 percent, to 55,537, the lowest level recorded since before 2017.

More than half of all claims came from the top 10 states, with Florida, Texas, and California leading the country in lightning-related property losses.

“Fewer claims and a decline in severity indicate increased awareness and improved mitigation,” said Sean Kevelighan, CEO, Triple-I. “Nonetheless, lightning remains a significant threat to property and safety, particularly during storm season.”

Key lightning claim stats for 2024

• Total number of claims: 55,537 (down from 70,787 in 2023)
• Total claims value: $1.04 billion (down from $1.24 billion)
• National average cost per claim: $18,641
• Highest state average: $38,558 in Texas

Top three states by lightning losses

• Florida – 4,780 claims, $113M in damages
• Texas – 4,369 claims, $168M in damages
• California – 4,005 claims, $75M in damages

“Lightning remains a costly and unpredictable threat, with ground surges causing nearly half of all claims,” said Michal Brower of State Farm. “These events can cause extensive damage to electrical systems, appliances, and even structural issues. The damage underscores the critical need for homeowners to be aware of the risks, invest in protective measures, and stay prepared, especially in high-risk regions where lightning strikes are most frequent and damaging.”

Lightning strikes can cause more than just a power outage. Common impacts include:

• Fires in attics, roofs, or walls
• Power surges that destroy electronics and appliances
• Structural damage
• Injury or even death

How to Stay Protected

Homeowners can protect their families and property by following a few guidelines:

• Install whole-home surge protection and unplug devices during storms;
• Consider a certified lightning protection system;
• Check your homeowners’ insurance policy for lightning and surge-related coverage; and
• Stay indoors and avoid wired devices during thunderstorms.

Damage caused by lightning, such as fire, is covered by standard homeowners’ insurance policies.  Some policies provide coverage for power surges that are the direct result of a lightning strike. 

The Lightning Protection Institute (LPI) notes that lightning strikes can occur at an astonishing rate of 100 times per second.

“Whether it’s a family home or a mission-critical facility, no property is immune to lightning,” said Tim Harger, Executive Director at LPI, whose organization provides resources for the design, installation, and inspection of lightning protection systems. “The most effective time to prevent lightning damage is before a storm. A lightning risk assessment paired with a professionally installed protection system can make all the difference in keeping people safe and operations uninterrupted.”

While lightning-related claims may be down, the risk is still very real, especially in high-strike areas like Florida, Texas, and California. Taking preventive steps now can reduce exposure to costly damage later.

Learn More:

Lightning Protection Institute

The Importance of Protecting Critical Facilities From Lightning Strikes

Lightning: Quantifying a Complex, Costly Peril to Support Resilience

Beyond Fire: Triple-I Interview Unravels Lightning-Risk Complexity

One way IBA’s 5-Star Retail Brokers differentiated themselves was through sector specialization. Whether focused on construction, real estate, logistics, or healthcare, they bring industry-specific insights that allow them to navigate nuanced underwriting criteria and secure tailored, sustainable insurance solutions. This depth of knowledge not only supports effective placement but strengthens broker-carrier relationships and fosters trust in complex renewal negotiations.

Market access, negotiation power,

and execution

The best retail brokers maintain broad and trusted access to both domestic and international carrier markets. Their reputations are built on transparency, performance, and continuity, allowing them to command attention even in high-demand segments. These relationships are critical to structuring bespoke programs that not only meet coverage needs, but also account for evolving risks, compliance requirements, and business-specific sensitivities.

In execution, these brokers are strategic negotiators capable of structuring sophisticated placements that optimize pricing and coverage through techniques such as quota sharing, blended programs, and risk layering. They are also educators who ensure that clients understand complex policy language, limitations, and triggers, and are equipped to make informed, risk-aligned decisions.

The best retail brokers are advisors, negotiators, and problem-solvers who drive outcomes and deliver long-term value in a marketplace where precision, trust, and foresight are in higher demand than ever.

Data analysis of top retail brokers

A comparison of the performance of IBA’s winners in 2025 and previous years, in relation to revenue, client growth, and policies written, delivered interesting results.

Further insight and data comparison of the profiles and demographics of 2025’s winners and previous years’ revealed the following.

Meet IBA’s Top Retail Brokers 2025

Growth through market expertise, precision,

and visibility

In one of the most disrupted insurance environments in the US – the coastal property market – Brian Payne has established himself as a top-performing retail broker by turning volatility into opportunity. Through a combination of market specialization, branding strategy, and operational efficiency, the CEO has not only grown his business, which he joined as an intern in 2003, but created a proprietary service model enabling scalability and long-term client retention.

Navigating a volatile market

Based in South Carolina, a region with heightened coastal exposure, Payne operates at the center of one of the most dynamic markets. Carrier capacity constraints, rising property values, and frequent non-renewals have created an environment in constant flux. 

“There’s been significant disruption,” he says, “with traditional carriers pulling out or tightening appetite. That creates opportunities for brokers who know how to navigate the landscape.”

And that’s exactly what Payne does. Leveraging his extensive network of regional carriers, E&S markets, and Lloyd’s partners, he ensures that even the most complex property risks find viable, competitive placement. With deep relationships across underwriting teams, Payne brings solutions where others see roadblocks. 

“Access to markets and the ability to place profitable business is everything,” he says. “We bring carriers opportunities they want to write – and that makes all the difference.”

Driving demand

A key element of Payne’s success lies in his sophisticated marketing strategy. By using a layered approach that combines social media, billboards, radio, and television, he builds brand familiarity with prospective clients through repetition and visibility. 

“We’re not just promoting a product – we’re reinforcing a name,” he says. “Even when a customer isn’t actively shopping, that brand recognition drives curiosity and eventually conversion.”

What differentiates Payne’s approach is his understanding of top-of-mind awareness in a fragmented market. While large national carriers flood media channels, Payne has tailored that principle for regional effectiveness.

“We may not be GEICO or State Farm, but it’s the same principle of building the brand,” he says

 

Operational excellence 

Behind the scenes, Payne has built a highly organized agency model with clearly defined roles and responsibilities, a structure he designed specifically to meet the demands of a high-volume, fast-paced market. 

“We developed in-house systems to handle everything from underwriting and document processing to payment coordination and mortgagee changes,” Payne explains. “Every task is assigned to a specialist, which allows us to work more efficiently and provide better turnaround times.”

That structure is supported by long-tenured staff, with many team members celebrating five, 10, or even 15 years. This continuity enhances client experience and supports the agency’s growth without compromising service quality. 

“It’s not just about size,” he says. “It’s about having the right people in the right roles – and we’ve built that from the ground up.”

Payne also credits technology as a growth accelerator. With integrated platforms for quoting, underwriting, and data retrieval, his team can generate competitive proposals in hours – not days. 

“We can bind policies any day of the year, even on holidays,” he says. “Geo-coded rating, access to instant property data, and digital applications have completely changed the game. What used to take a week now takes a day.”

By combining these tools with a keen understanding of carrier rating models, Payne positions each submission for optimal success. “We’re strategic with underwriting placements,” he says. “We know what carriers are looking for, and we match properties accordingly, cutting out delays and increasing bind rates.”

Positioned for continued expansion

As the market begins to soften slightly and reinsurance appetite returns, Payne sees more opportunities on the horizon. New entrants are producing competitive products, and consumers are more focused than ever on properly insuring their largest assets.

“For most folks, one of their largest assets is either their commercial or residential property, and there’s now more attention and focus about their coverages,” he says. “And when that happens, the broker who’s already built trust and visibility wins.”

With the foundations he has created, Payne is well-positioned to continue his upward trajectory – delivering value to clients, profitability to carriers, and long-term growth.

Delivering through precision, hustle, and insight

With nearly 17 years in the industry, Termechi has built a career defined by hands-on diligence, strategic thinking, and an unwavering focus on results. 

Based in California and specializing in the highly technical transportation and construction sectors, Termechi has emerged as a 5-Star Retail Broker 2025 by mastering the nuances of market shifts, client operations, and underwriting complexity, especially in some of the most challenging segments of the US insurance landscape.

Growth driven by effort and execution

Termechi attributes his recent year-over-year growth to one central factor: personal drive. While past years leaned more on team collaboration, this past year marked a turning point as he took full ownership of his marketing and outreach strategies. 

“I basically busted my ass,” he says candidly. “I knew I needed to push harder, and I did. That meant getting out there, making cold calls, actively going after new accounts, and being visible in the market.” 

That hustle translated into significant growth – fueled in part by a surge in referrals and new client acquisition.

This approach is especially critical in the current environment, where brokers must work proactively to capture opportunities in a tightening market. Termechi embraces this challenge, particularly in the commercial auto and transportation space, where rate increases and limited carrier appetite have created both volatility and opportunity. 

He says, “With auto rates rising and coverage options narrowing, I saw a chance to step in and be a solution provider when clients were feeling the pressure.”

Deep understanding of complex risks

Termechi’s success is rooted in a fundamental principle: understand your client’s business thoroughly before offering coverage. Nowhere is this more important than in the construction sector, where many of his clients are trade contractors. These are not paper contractors but companies doing drywall, painting, framing, and out in the field, exposed to real risk. 

“These businesses face tight margins and can’t afford gaps in coverage. That’s why we take a deep dive into every operation, making sure there are no exclusions.”

A key differentiator for Termechi is his policy literacy. “Too many agents don’t read the forms,” he says. “Clients may think they’re saving money, but I’ve seen in cases where the work that they’re doing is specifically excluded, so they’re literally paying for nothing.” 

By thoroughly vetting policies, educating clients about exclusions, and tailoring solutions to their operational realities, Termechi mitigates that risk and builds long-term trust.

 

Team collaboration and strategic delegation

While Termechi is a self-starter, he’s quick to credit the support system around him. He leverages a full-service team at his agency – claims support, certificate processing, renewal prep – so he can stay focused on what he does best: building client relationships and closing business. 

“Delegation is crucial. You have to know what you’re best at and focus there. For me, it’s being the face of the business, solving client problems, and driving growth.”

This use of resources not only maximizes efficiency but enables him to scale without sacrificing service quality. 

A reputation built on experience 

Clients want to work with someone who understands their world and delivers results. Termechi’s reputation is grounded in both. 

“Experience matters,” he says. “But more than that, clients want to see that you can execute.” This results-oriented mindset has not only helped him retain clients but grow his book of business year after year. “I get the most satisfaction when clients are happy, when they know they are properly covered, and when they feel like they’re in good hands. That’s when I know the work I’ve put in is worth it.”

• Adam Gabler
  
  Construction Leader
  
  Newfront
• Bo Allen
  
  Senior VP Business Insurance
  
  Marsh McLennan Agency
• Brian Johnson
  
  Senior Executive Vice President
  
  Fisher Brown Bottrell, a Marsh McLennan Agency
• Bryce Bacic
  
  Sales Executive, Commercial Lines
  
  AssuredPartners
• Chase Carlisle
  
  Energy Practice Leader/Client Advisor
  
  Acrisure
• David Delorenzo
  
  Owner/Agent
  
  Bar and Restaurant Insurance
• David Garcia
  
  President
  
  Rancho Mesa
• David Jacobson
  
  Partner
  
  Acrisure
• Eric Harden
  
  Vice President, Commercial Lines
  
  Insuramax
• Fernando Silva
  
  Producer
  
  Lockton
• Fred Zutel
  
  President of Property and Casualty
  
  Lockton
• Gabe Erle
  
  President, Co-Founder
  
  C3 Risk & Insurance Services
• Grant Mehlich
  
  Founder
  
  GCM Insurance & Risk Management Advisors
• Gregory Havemeier
  
  Client Advisor and Partner
  
  Acrisure
• Hunter Cox
  
  Senior Vice President
  
  Marsh McLennan Agency
• Jack Carra
  
  Executive Vice President
  
  AssuredPartners
• Jamie Reid
  
  Chairman
  
  Gamie LLC dba C3 Risk & Insurance Services
• Jeffrey R. Sanders
  
  Partner and Client Advisor
  
  Acrisure
• Jeff Williams
  
  President
  
  AWA Insurance
• Jerry Becerra
  
  President
  
  Heffernan Barbary Insurance Services
• Justin Failoni
  
  Senior Vice President
  
  Acrisure
• Kyle Schielack
  
  Managing Director
  
  Higginbotham
• Marcus Eagan
  
  Managing Director
  
  Higginbotham
• Matt Hoskinson
  
  SVP Sales, Commercial Lines
  
  AssuredPartners
• Nick Brewe
  
  SVP Sales, Personal Lines
  
  AssuredPartners
• Rich Hallet
  
  Partner
  
  C3 Risk & Insurance Services
• Robert Foote
  
  Risk Advisor
  
  Acrisure
• Ryan Von Haden
  
  Partner/Vice President
  
  TRICOR Insurance
• Shantelle Cabir
  
  Senior Vice President/Business Insurance Broker
  
  Newfront
• Stephen Leist
  
  Senior Vice President/Producer
  
  AssuredPartners
• Tim Powers
  
  Vice President
  
  MGI Risk Advisors
• Tim Spear
  
  Client Advisor, Partner
  
  Acrisure
• Wess Peterson
  
  President
  
  Triumph Insurance Group
• Zachary Fanberg
  
  Managing Director
  
  Higginbotham

Platinum Retail Brokers

• Brian Johnson
  
  Senior Executive Vice President
  
  Fisher Brown Bottrell, a Marsh McLennan Agency
• Chase Carlisle
  
  Energy Practice Leader/Client Advisor
  
  Acrisure
• David Garcia
  
  President
  
  Rancho Mesa
• David Jacobson
  
  Partner
  
  Acrisure
• Fred Zutel
  
  President of Property and Casualty
  
  Lockton
• Gregory Havemeier
  
  Client Advisor and Partner
  
  Acrisure
• Jack Carra
  
  Executive Vice President
  
  AssuredPartners
• Jeff Williams
  
  President
  
  AWA Insurance
• Justin Failoni
  
  Senior Vice President
  
  Acrisure
• Marcus Eagan
  
  Managing Director
  
  Higginbotham
• Robert Foote
  
  Risk Advisor
  
  Acrisure

The brokerage market has enjoyed a period of sustained revenue growth, profitability, and shareholder value, driven by favorable macroeconomic conditions. M&A activity has flourished due to easy access to inexpensive capital on a robust cash flow business, while organic growth has been fueled by a hardening rate environment and inflation-driven exposure increases. Shareholder value, including that of financial sponsors and employees, has also been bolstered by a liquid capital market and historically high multiples, marked by a record number of transactions. However, these tailwinds are moderating as market conditions shift.

The surge in interest rates, record-high valuations, and tightened access to capital have created significant headwinds for M&A activity, with deal flow declining by about 30% through the first 8 months of 2024 compared to the same period in 2023. Despite this slowdown, M&A remains a crucial strategy for brokers to stay competitive in their offerings to clients and maintain their negotiating power with insurance carriers. Similarly, brokers’ organic growth, driven largely by increases in rate, over the past several years—averaging around 8 to 9% in annual revenue—is beginning to compress as P&C rate hikes moderate in some lines of business. Further, the average revenue of top 100 brokers and agencies held by private equity has nearly doubled in the past four years indicating that it takes more capital than ever to create liquidity events for the largest aggregators.

As the macroeconomic tailwinds begin to moderate, a critical question emerges: How can insurance brokers evolve their strategies to usher in the next era of profitable growth?

There are three longer-term levers the C-suite is exploring to create and sustain profitable growth:

1. Drive a greater degree of standardization and integration

Brokerages that operate with a highly federated model or function more as a holding company rather than an operating company often allow their underlying agencies to operate independently. While this approach offers flexibility and can promote an entrepreneurial spirit, it also leads to operational inconsistencies, disconnected technology systems, disparate data sources, and challenges with governance and controls. As the market evolves, brokerages are increasingly seeking to standardize ways of working and introduce a higher degree of integration in their operating models. This shift involves adopting a global redesign to establish uniform definitions and rethinking how enterprise-wide processes should be managed to enhance quality and controls.

Further, process standardization and agency integration must be anchored by an integrated technology ecosystem spanning business segments and functional groups to enable traceable data flow throughout the organization and create a single source of truth for managing the business. Tighter integration and standardization form the foundation for improved efficiencies and the ability to generate greater insights to drive growth:

• Greater enterprise leverage and margin preservation: Standard operating procedures and tighter integration enable brokers to better consolidate non-client-facing activities. Back-office functions such as accounting, IT, and HR can be shifted out of the agency office to create efficiencies and enable greater focus on sales and service initiatives.
• Optimized procurement and indirect spend: Acquired agencies typically come with their host of technology licenses and third-party vendors; a greater degree of integration allows consolidation of fragmented vendor and licensing agreements, gaining economies of scale with a targeted vendor list. Additionally, efforts to drive operational standardization will introduce opportunities to normalize discretionary spending, such as reducing side tech projects or solution workarounds.
• Improved data-driven decisions and accountability: With accurate, available data, operators can govern their business on a distinct set of insights with a clear understanding of what, how, and why each insight is measured, including how frontline colleagues, who operate much of the business, impact enterprise performance. The shift to fact-based decision-making creates focus and enables leaders to take calculated actions with measurable results, reducing the need for broad, ill-defined moves that often negatively impact margins – and creates clear accountability for what information needs to be captured in a consistent fashion, enabling the enterprise to harness the insights useful to the enterprise and the field.

2. Activate new sources of growth:

With more restrictive M&A conditions and moderating tailwinds from renewal pricing increases, brokers need to be strategic about where to invest in growth. Driving organic growth through data is essential, deploying strategies and tools like Generative AI to gain deeper insights for revenue-generating roles (e.g., leveraging Gen AI to identify cross-sell/up-sell opportunities across the brokerage book of business). Activating synergistic revenue streams by prioritizing investments in new capabilities (e.g., focusing on M&A that brings new products or geographic coverage), enhancing scale within existing markets, or exploring vertical integration opportunities should be key areas of focus moving forward. We also see brokerages differentiating themselves through industry niches and specialization, tying these to MGAs or affinity partnerships to become go-to distributors for specific industries. Lastly, as the E&S market continues to grow, brokerages have a significant opportunity to expand their scope to include wholesale business, capturing multiple revenue streams, especially in challenging exposure areas and coverage lines.

3. Invest in foundational capabilities and new talent:

As brokerages drive greater levels of integration, the focus is shifting toward agencies with strong operators rather than those solely led by savvy (sales) entrepreneurs. This change demands a different leadership profile—one that can manage operators and lead the transformations required to respond to growing market pressures while continuously delivering shareholder value (e.g., standardizing integration, enhancing technology, building and attracting new talent). Such skillsets are relatively fresh to brokerage leadership, and earmarking executives to lead these transformations can be challenging in a federated model composed of corporate and regional structures, and underlying agencies. The ability to influence and drive transformation across all layers is a distinctive skillset.

Four short-term quick wins to get started

While the longer-term response to the pressures facing the brokerage industry will require focus and coordination by the C-Suite, we recommend four initial steps brokerage leaders can take to get started:

1. Identify priority areas for standardization and centralization: For more fragmented brokers, we start by standardizing level one data-entry processes (e.g., AMS standard operating procedures), begin to move toward common technologies (e.g., one agency management system), and work towards centralizing common low-risk activities to show success and build buy-in for future centralization (e.g., vendor payables, data processing, policy certifications, claims handling, etc.).
2. Re-evaluate M&A agenda: Update enterprise M&A appetite to be more selective; each transaction should support a long-term growth agenda and be complimentary to the core business. Explore divesting areas of the business that are non-core to generate new sources of capital and allow the enterprise to focus on what will enable the business to be an operating company, not a holding company.
3. Assess business reporting and data gaps: While management can generate financial overviews and operational reports, the fragmented nature of AMS and accounting systems often requires extensive data cleansing to fulfill these fundamental reporting requirements. Understand the technology/ systems landscape (e.g., how AMS instances connect to Accounting/ Finance source of truth) and operating models across the organization to map how data flows and identify opportunities for greater data hygiene, integrity, and availability. We see brokers first prioritizing standard ways of completing financial and operational management reporting to set the foundation for deeper insights.
4. Determine priority talent gaps: Decisions to act on the levers discussed above are highly strategic and likely necessary for brokerages to withstand changes in the market, but executing these decisions requires talent not typically found in today’s brokerages. Identify core talent gaps (e.g., transformation leadership, business operators, data expertise, industry specialization) to pave the road ahead and develop a plan for acquiring this talent.

We’ve helped and are actively helping brokerages navigate this evolving landscape. Please reach out to Heather Sullivan, Gina Papas, Robert Held, or Bob Besio if you’d like to discuss further.

 

Devastating flooding in central Texas over the July 4, 2025, weekend highlighted several aspects of the state’s risk profile that also are relevant to the rest of the country, according to the latest Triple-I Issues Brief. One is the rising incidence of severe inland flooding related to tropical storms.

Tropical Storm Barry made landfall in Mexico on June 29 and weakened quickly, but its remnant moisture drifted northward into Texas, according to Dr. Phil Klotzbach, a research scientist in the Department of Atmospheric Science at Colorado State University and a Triple-I non-resident scholar.

“A slow-moving low-pressure area developed and helped bring up the moisture-rich air rom Barry and concentrated it over the Hill Country of central Texas,” Klotzbach said. “The soil was also extremely hard from prior drought conditions, which exacerbated the flash flooding that occurred.”

Such flooding far from landfall has become more frequent and severe in recent years.  In Texas – as in much of the United States, particularly far from the coasts – few homeowners have flood insurance. Many believe flood damage is covered by their homeowners’ or renters’ insurance. Others believe the coverage is not worth buying if their mortgage lender doesn’t require it.  In Kerr County, where much of the July 4 flooding took place, flood insurance take-up rates through the National Flood Insurance Program (NFIP) were 2.5 percent.

Convective storms, fires, and freezes

But tropical storms aren’t always the impetus for flooding. In July 2023, a series of intense thunderstorms resulted in heavy rainfall, deadly flash floods, and severe river flooding in eastern Kentucky and central Appalachia. The conditions that lead to such severe convective storms also are prevalent in Texas.

Severe convective storms are a growing source of losses for property/casualty insurers. According to Gallagher Re, severe convective storm events in 2023 and 2024 “have cost global insurers a remarkable US$143 billion, of which US$120 billion occurred in the U.S. alone.”

Given its aridity and winds, it should be no surprise that Texas is highly subject to wildfire – but the state also has been increasingly prone to severe winter storms and debilitating freezes. On Valentine’s Day 2021, snow fell across most of Texas, accumulating as temperatures stayed below freezing and precipitation continued through the night. A catastrophic failure of the state’s independent electric grid exacerbated these conditions as snow and ice shut down roads and many homes suffered pipe bursts and multiple days without power.

Texas’s 2021 experience illustrates how grid instability can act as a “risk multiplier” for natural disasters. The entire U.S. electric power grid is increasingly vulnerable as the infrastructure ages and proliferating AI data centers increase demand.  

Need for data and collaboration

The severe damage and loss of life from the July 4 flooding have naturally raised the question of whether the Trump Administration’s reductions in National Weather Service  staffing contributed to the high human cost of this event. While it is hard to say with certainty, these cuts have affected how NWS works – for example, in its use of weather balloons to monitor weather. As early as April, staffing data gathered by NWS indicated that field offices were “critically understaffed”.

In June, panelists at Triple-I’s Joint Industry Forum expressed concern about the impact of the federal cuts on weather monitoring and modeling, as well as programs to help communities adequately prepare for and recover from disasters. Triple-I has published extensively on the need for insurers to shift from exclusively focusing on repairing and replacing property to predicting events and preventing damage.

Collective action at all levels – individual, commercial, and government – is needed to mitigate risks, build resilience, and reduce fraud and legal system abuse. Triple-I and its members are committed to fostering such action and regularly provide data and analysis to inform the necessary conversations.

Learn More:

Triple-I Brief Highlights Rising Inland Flood Risk

Hurricane Helene Highlights Inland Flood Protection Gap

JIF 2025: Federal Cuts Imperil Resilience Efforts

Weather Balloons’ Role in Readiness, Resilience

ClimateTech Connect Confronts Climate Peril From Washington Stage

BRIC Funding Loss Underscores Need for Collective Action on Climate Resilience

JIF 2024: Collective, Data-Driven Approaches Needed to Address Climate-Related Perils

Texas Winter Storm Costs Raise Extreme-Weather Flags for States, Localities

Cyber is an expanding net-new growth area with opportunity to deliver a compelling insurance offering especially in the mid-market. Yet, the path to becoming a market-leading and profitable cyber insurer is fraught with challenges. In this article, we outline the essential strategies to develop a top-tier cyber offering, culminating in a guide to the 7 strategic cyber steps for the Chief Underwriting Officer. 

Why cyber in the mid-market has unique challenges to mitigate

The cyber risk landscape is evolving so rapidly that insurers need a robust framework to for example enable continuous data-led learning from previous claims, deliver a seamless quote and bind process, and to mitigate unintended risk aggregation. 

While the SME market will typically purchase standard cyber coverage direct and online, the mid-market consists of companies that are serviced by brokers and agents. These companies require insurers to possess both foundational and advanced capabilities to effectively address the unique challenges of cyber risk in the mid-market. The key challenges that are unique to cyber in the mid-market are as follows: 

Transparency and clarity for brokers and agents: As the mid-market is predominantly serviced by brokers and agents, it’s crucial that the insurer’s risk appetite and underwriting approach are transparent. Whether the insurer offers a dedicated cyber broker portal or utilizes existing portals for multiple lines of business, the key is to have a transparent risk appetite and to make it seamless for brokers to compare quotes and to place business. Additionally, it is imperative to turn around accurate quotes on a same-day basis. 

Need for both standard and bespoke policies: The mid-market consists of companies that purchase both standard and bespoke policies. Insurers therefore need to be able to quickly turn around changes to policy terms, changes to exclusions, or a different mix of higher deductibles or sub-limits. Some mid-market companies have sophisticated requirements on risk mitigation, prevention and incident response planning. For large mid-market customers there can be a need for in-depth exposure analysis to design the right insurance coverage.  

Significant amounts of data: Whilst no more than four data points are required from an SME customer for a standard cyber policy (name, industry, revenue, and the customer’s website), far more data points are required by mid-market customers. Some data points can be obtained through open APIs and structured data intake from brokers, but the higher complexity of the risk, the higher the likelihood is for the relevant data points to arrive in unstructured documents. 

Establishing a robust digital infrastructure for cyber insurance

Cyber insurers need foundational capabilities across distribution, quote, and bind to ensure a seamless business process. The operating model begins and ends with being focused on the customer and broker experience. Whether insurers choose to organise themselves according to the customer segment (e.g. a mid-market Center of Excellence servicing all lines of business) or according to the lines of business (e.g. a specialized one-stop-shop cyber team cutting across distribution, underwriting, and claims), it is important that this is a conscious choice made at the C-level. 

All customers, irrespective of whether they purchase cyber insurance, should quantify their cyber risk and define their key cyber risk scenarios as part of their incident response planning. If they do not, they are running an unknown and potentially significant risk through the balance sheet. Some insurers may choose to invest in risk scenario capabilities, whereas others will rely on brokers or outsource to cybersecurity experts. The capabilities required for an in-depth exposure analysis is similar to what some insurers offer in a cyber saferoom that provides a secure space for pre-incident advice and training, cyber stress-testing, cybersecurity readiness verification tools, detection and response solutions, incident response planning, notification services and embedded claims services. 

A key foundational capability for cyber is a strong digital core and master data management that is fit-for-purpose. Insurers require strategic tools like a robust digital core and fit-for-purpose master data management to perform detailed exposure analysis at the quote stage. These tools facilitate granular risk accumulation and establish a framework for measuring and understanding aggregated cyber risk exposure based on various parameters, including industry sector, underlying hardware and software, cybersecurity maturity, supply chains, jurisdiction, and company size. A detailed exposure management framework is crucial for effectively mitigating the risk of unintended risk aggregation. 

Building advanced market leading cyber capabilities

A critical component to becoming a market-leading cyber insurer is that the technology and data capabilities must be architected to work at scale and in real-time. Cyber insurance is among the most challenging sectors due to the potentially catastrophic and boundary-less nature of breaches. Cyber incidents can be continuously evolving and unpredictable, akin to oil spillages, and can critically impact businesses, societies, and essential infrastructure like hospitals, water and sewage systems, and airports. Today, the potential for insurers to face unintended risk aggregation is a clear and present threat. 

As mentioned above, significantly more data points need to be captured and modelled at the quote and bind stage for mid-market cyber policies. Additionally, at first notice of loss, there can be hundreds of relevant data points, which is far more than for example with a motor claim, where insurers typically capture 20-30 data points that are motor specific (vehicle details, purpose of use, witness details, IoT data etc.). For a cyber claim there are more than 100 data points that can be relevant for the continuous learning and refinement that feeds into exposure management, the actuarial tables, and the risk controls in the underwriting system. This in turn is what enables a market-leading insurer to remain profitable through a robust framework around risk appetite and pricing.  

As previously covered, there is a scarcity of cyber talent with deep proficiency in cybersecurity protocols and a deep understanding of the constantly evolving regulations and legislation across IT, AI, GDPR, and consumer privacy. Whilst investing in talent and continuously upskilling underwriters and claims adjusters, there are high-impact use cases in cyber insurance for AI and Gen AI solutions. We have seen AI and Gen AI save underwriters tens of hours a month and empower them to only spend their time on niche and hazardous risk areas that require deep human expertise.  

Insurers with a strong digital core can move quickly on accelerating profitable growth in cyber, but most insurers are coming to the realization of the investments needed to implement AI and Gen AI at scale. Per Accenture’s Pulse of Change research, 46% of insurance C-suite leaders say it will take more than 6 months to scale up Gen AI technologies and take advantage of the potential benefits. If applications and data are not on the cloud, and if there is not a strong security layer, then benefiting from Gen AI at scale is virtually impossible. 

The 7 strategic cyber steps for the Chief Underwriting Officer

In today’s rapidly evolving technology landscape, Chief Underwriting Officers face the critical task of steering their organizations through the complexities of cyber insurance. The following strategic steps are a roadmap for insurers to not only survive, but thrive in this challenging environment: 

1. Define your identity in cyber insurance: Decide whether you want to be a conservative insurer, a fast follower, or a market leader. This choice will guide your investments and emphasize cyber as a core part of your business. 
2. Establish your cyber brand: Determine your signature offering in cyber insurance, whether it’s leading-edge risk consulting, competitive pricing, AI-powered and streamlined processes, or a strong reputation in claims service. 
3. Opt for specialization: Choose between establishing a dedicated mid-market Center of Excellence (CoE), a cyber-specific CoE, or a hybrid operation model. 
4. Enhance responsiveness: Transform or deploy new capabilities to deliver accurate quotes within a few hours. 
5. Refine underwriting practices: Decide on the optimal number of underwriting variables for technical pricing. Reverse-engineer your processes to capture essential data at the broker submission and claim notification stages. 
6. Assess cyber exposure management: Engage external experts to evaluate your cyber exposure management helping to avoid unintended risk aggregation. 
7. Invest in talent: Focus on a talent strategy that enhances skills and integrates advanced technologies like AI and Gen AI to keep pace with the evolving cyber risk landscape. 

Measuring the path to being a cyber market leader

Designing and executing a leading framework for cyber insurance presents significant challenges. A crucial aspect involves defining success, establishing metrics for measurement, and determining the necessary actions to achieve these goals. Continuously monitoring financial and operational metrics is essential for timely adjustments, ensuring the capture of profitable growth in the cyber mid-market. For further discussion, please contact Carmina Lees and Matthew Madsen.  

Recent developments in the atmosphere over the Caribbean Sea have led researchers at Colorado State University (CSU) to make slight improvements to their hurricane forecast for the 2025 Atlantic-basin season, in an update published Wednesday.

Triple-I non-resident scholar Phil Klotzbach, Ph.D., a senior research scientist in the Department of Atmospheric Science at CSU, and the CSU TC-RAMS research team are now predicting 16 total named storms through the end of the year, a small drop from their original forecast of 17.

“The primary reason for the slight decrease in our outlook is both observed and predicted high levels of Caribbean wind shear,” Klotzbach said. “High levels of Caribbean shear in June and July are typically associated with less active hurricane seasons.”

Klotzbach warned, however, that peak hurricane season – which typically occurs from mid-August through late October – could still be very active, despite current atmospheric conditions.

“The subtropical eastern Atlantic and portions of the tropical Atlantic are warmer than normal,” he said. “The current Atlantic sea surface temperature pattern is fairly similar to what we typically observe in July prior to active Atlantic hurricane seasons.”

Learn More:

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One of the judges, Jasina Morris, CIC, senior vice president at Alliant Insurance Services and a board member of the Dallas–Fort Worth Chapter of the National African American Insurance Association (NAAIA DFW), explains what impressed her the most.

“All the nominees were incredibly strong. I found myself especially looking for individuals who demonstrated a combination of leadership and accomplishments within their organizations, insurance community engagement, and forward thinking,” she says. “The winners stood out because they went beyond expectations; they showed initiative, a strong sense of purpose, and a clear commitment to shaping the future of the insurance industry.”

Morris also highlighted the challenges facing the Rising Stars to stand out in the current climate. She adds, “The industry is in the midst of significant transformation, with increasing client expectations and rapid technological change. For early-career professionals, navigating this complexity while still building credibility, networks, and technical expertise can be daunting.”

The importance of young professionals is particularly important as, according to Yupro Placement, the insurance workforce is markedly older than the general US workforce, with a median age of 45, and 25 percent of employees over 55 years old.

They refer to this aging demographic as “a ticking clock, signaling a forthcoming exodus of institutional knowledge and experience.” 

An analysis of all the winners shows there are clear patterns in attributes and behaviors that have set the Rising Stars apart. These trends offer valuable insights into what makes the next wave of insurance leaders truly exceptional. 

One of the most common – and powerful – traits shared among top young professionals is a proactive commitment to mentorship. They exemplify this with structured mentorship initiatives, designed to support junior team members both within and beyond their immediate teams.

This deliberate investment in others is a strategic tool. By helping new hires navigate complex insurance issues, the Rising Stars are accelerating team performance, reducing onboarding friction, and building future-ready teams. Such efforts foster a collaborative, high-trust environment – a competitive edge in a knowledge-driven sector.

This mentorship mindset signals maturity beyond years. It also reveals a growing emphasis among younger professionals on ecosystem success rather than just individual advancement. 

The insurance industry’s digital transformation isn’t just about tools – it’s about people who can lead that change. Young professionals like IBA’s Rising Stars are at the forefront, identifying inefficiencies and spearheading technological solutions that directly impact client outcomes. 

Their revamping of their firm’s risk assessment and reporting tools illustrates a key trend: the blend of domain expertise with digital fluency. By collaborating with IT and analytics teams, they are creating streamlined, user-friendly platforms that enhance the speed and accuracy of data collection and client reporting. 

Young insurance leaders aren’t waiting for permission to lead change – they’re building the platforms for it. Their involvement reflects a broader trend where high-potential employees are being entrusted with internal innovation roles, effectively serving as cross-functional change agents. 

This appetite for continuous improvement signals a mindset that is both entrepreneurial and systemic. Rising professionals are not only suggesting new ideas – they are institutionally embedding them, ensuring innovation becomes repeatable and measurable.

Many of the Rising Stars are scaling their impact by codifying their methods, creating training programs for junior staff and establishing documentation of best practices for their teams. These actions reflect a mindset focused on sustainability and replication of success. 

Collaboration is central to this trend. Whether it’s between analytics, underwriting, or client services, the best young professionals are not siloed but fluent in cross-disciplinary dialogue. 

Another defining trait of today’s top young professionals is their advocacy and leadership in organizing workshops and dialogues around the role of diverse perspectives in risk management, highlighting the active role of IBA’s Rising Stars in shaping workplace culture. 

These efforts go beyond compliance or public image. They’re rooted in a recognition that diverse teams make better decisions, particularly in an industry that relies on nuanced judgment and global insight. They understand that a truly inclusive environment not only attracts the best talent but also yields more resilient and innovative outcomes.

In fact, DEI leadership is increasingly becoming a differentiator for top talent. Organizations are taking notice, rewarding those who champion equity as a strategic advantage.

Underlying all these traits is a deeper orientation toward purpose as the top young professionals seek meaning. Whether it’s improving client service through better tools, elevating peers through mentorship, or championing inclusion, their work is consistently tied to broader business and social impact.

This alignment between personal values and business goals creates a powerful sense of mission. It’s also becoming a core component of leadership readiness in the insurance industry.

As organizations compete for top talent, those that can offer this kind of purpose-aligned growth path will increasingly attract the best of the next generation. 

Conclusion: leadership reimagined 

• Today’s best young insurance professionals are not waiting to be told what to do.
  
   

• They take initiative, lead through collaboration, and mentor with intention.
  
   

• They are agile, culturally aware, digitally fluent, and relentlessly people-focused. 
  
   

When Stephanie Sherman, 32, began her role as a producer, she was quite literally thrown into the eye of the storm, having to immediately navigate 2022’s Hurricane Ian, one of the costliest disasters in American history.  

“Nobody in the office had any internet service,” explains the now vice president of sales. “I would have to drive miles away from my house, waiting for a little bit of cell service in order to respond to client’s emails.” That experience has enabled her to alert potential clients of Florida’s changing geographical landscape, and why those who may not have needed insurance previously will benefit from Harbour Risk Management (HRM)’s services. This includes clients who had not been living in a recognized flood zone but are now at risk. 

Her book has grown to $300,000 in revenue, mainly through working with high-net personal lines clients. During sales pitches, Sherman does not shy away from the fact that HRM’s services are generally more expensive than competitors. Explaining the value she can deliver to clients in a clear and honest manner builds a relationship that may not lead to immediate results but creates trust for the future.  

“Of course, I’ve lost clients over price, but they always thank me for explaining,” she says. “And after a year or two, sometimes they’ve come back to me because they remember the conversations that we had and the attention that I gave them.” 

 

One key trait that has aided Sherman’s rise is her communication skills. This includes acknowledging clients even if she is not immediately available.  

“If I’m on my way to pick up my son and someone is calling me, even if I’m not able to answer the call, I’ll send them a text acknowledging that they reached out to me. People want to feel and see that attentiveness.”

By listening to her clients’ needs and providing real-life examples from a region she has inhabited her whole life, Sherman emphasizes a sales tactic that goes beyond numbers. 

She says, “I like taking the time to educate clients, talking them through every coverage and what it means, explaining to them real-life scenarios. People can look at numbers all day but whenever you give them actual scenarios, it makes them sit and think, ‘Wow, she’s right.’” Her constant desire to keep growing has led her to achieve the top producer status at her agency repeatedly. 

“My goal is to keep that momentum going. I strongly believe that you get what you put into it,” she says. “I’m not going to see a million-dollar book if I’m working part time. I know that the time to hustle is now.” 

Social media is a key component for young producers like Sherman because it allows her to access a wider client base. She increases her visibility by partnering with real estate agents, financial advisors, and mortgage lenders.

“Technology is definitely one of the main things that are helping young agents put themselves out there. The younger generation has more of an advantage with social media and networking groups.” 

With a primary role helping to lead the ProEx (management liability) department in the Los Angeles and Central California region, Chris Rhi supports producers and their clients, focusing on management liability and financial lines. 

As a coverage and placement specialist, Rhi, 35, cultivates strong relationships with carrier and wholesale broker partners, continuously pressure-testing them to secure optimal pricing and coverage. 

And for the director of private and non-profit management liability, while adopting increasing amounts of technology is integral, there is a more important emphasis on building strong human relationships. 

“As things get automized especially with the advent of AI upon us, it’s just even more important to keep that human touch,” he says. “I love having face time with underwriters and the partners that we work with, and I think clients are also a very important part of that discussion. Creating those win-win situations is my goal every day.” 

 

Rhi outlines the challenges faced by the insurance industry with fluctuations in premiums forcing firms to pivot at short notice. 

“There’s a lot of sensitivity from insurance companies these days; our soft market in the financial line space has gone quite longer than expected and their books are drying up. They’re losing accounts, and at the same time, the premiums are going down,” he explains. “Looking out for each other is crucial and creating that empathy is how I have navigated everything.”

Rhi also serves as the product co-leader for private and non-profit management liability nationwide due to being passionate about educating and mentoring younger colleagues through training webinars with carrier partners. One of his key contributions has been creating The ProEx Library, a centralized collection of essential financial lines resources, including policy forms, endorsements, applications, and coverage comparisons. He uses the term “fulfilling” in response to the project’s success. 

He says, “Our country’s diversity is what makes it so beautiful. I deeply believe in recognizing and honoring our own cultures and communities while embracing and supporting others.”

To this end, he represented HUB at Chubb’s sponsored table for the University of Southern California’s Latin American Alumni Association gala as an alumnus. Despite not being Latin American, he was keen to take the opportunity to celebrate this community. 

Additionally, Rhi has proudly represented HUB for three years at the LiNK (Liberty in North Korea) gala through a client partnership – which is close to home as his grandfather escaped the North Korean regime prior to the Korean War – and is also actively involved in AAPI organizations. 

As vice president of broker relations, Sam Hickey has overseen RRS’s expansion into 16 different states, an accomplishment he sees as an example of both his own career growth, along with that of the company.

While this growth has created hurdles for the executive, who is noted for his dedication, strategic thinking, and ability to lead by example, it underlines the importance of staying nimble and developing long-lasting relationships with brokers. 

“Building the trust and getting the buy-in from the broker community outside of our home turf has been probably the most challenging thing. But you can’t just flip a switch,” says Hickey, based in RRS’s East Coast branch. “It’s fun to get out and meet people who are experts in their territories that I have never dealt with my career.” 

 

Part of his role includes educating brokers on the value-added claims and risk management services available to all insureds, keeping them up to date with RRS’s offerings to better serve their clients. 

The 30-year-old executive explains that during his regular meetings with brokers, he holds himself and those he works with accountable. This includes a high degree of transparency, ensuring that both parties always remain on the same page. 

He explains, “Ultimately, having open lines of communication and transparency leads to stronger relationships. You’re not going to win every deal together, but every transaction ends up being a learning experience.” 

Beyond his core duties, Hickey actively develops innovative solutions tailored to the complex needs of clients, such as facilitating Roosevelt Road’s Tradesman Program. This initiative provides clients with 24/7 loss control support, monthly site visits, and access to Field Flo, a complimentary construction management software designed to enhance operational efficiency. 

As an account executive at Alliant Construction Services Group, Emmeline Kuo handles the day-to-day insurance needs for clients, including maintaining schedules, issuing certificates, and reviewing contracts and policies.  

She also manages bigger-picture objectives like identifying loss trends, discussing changes in the market and operations and their impact on an insured. She also coordinates the Alliant team, making sure that representatives from risk control, claims, surety, and the insurance servicing team work together toward collective success. 

Maintaining a healthy work-life balance, including an interest in travel, has been deeply influential in 36-year-old Kuo’s success. 

 

“Every time I go away on a big trip, I get perspective on my own life. I have a tendency to get caught up in the details and travel, for me, is just a reminder of the bigger picture,” she says.

With AI increasingly ever-present, Kuo thinks the fast-moving technology is an important tool, but like other Rising Stars, believes that the value of human interactions cannot be overstated. She explains, “Everyone loves to talk about AI and tech, and my opinion is that as much as things change, things also really stay the same. From a broker perspective, my value comes with my relationship with clients and that can’t be replaced by AI – at least not yet.” 

Benefitting from a long-time mentor who has spent four decades in the industry, Kuo passes on this invaluable insight and knowledge to other young women in her field. 

“I came in at Alliant still very much in a more of a mentee role, and then in these last years, that has started to flip and I’ve realized I’m now the more senior person in a lot of aspects,” she says. 

“I try to be supportive and encouraging. We do get stressed out, and I try to model appropriate behavior for what that looks like – not lashing out and making sure that you’re still constructive even when you’re frustrated.” 

While soft skills can be overlooked, Kuo argues that these are just as important as the more technical attributes.  

“Listening is such a critical skill,” she adds. This ability to communicate clearly and dedicate her time is illustrated by how she often contributes to insurance coverage conversations to proactively address and resolve problems.  

In many instances, the contractor insureds are pressured by another party to provide certificates with inaccurate or incorrect wording. They can be refused entrance to a job site and threatened with delays in the project. Kuo participates in meetings to explain why those requests cannot be completed; this allows insureds to move forward with their projects and avoid any delays. 

IBA also gathered industry experts’ views on what moves the needle as a young professional in today’s insurance industry. 

Mindy Pranculeviciute, senior recruiter at Talentfoot Executive Search and Staffing, believes the highest performers combine technical fluency with commercial intuition. 

“They understand underwriting and claims inside and out, but they are also comfortable using AI tools to streamline workflows, optimize pricing, and detect fraud. They do not just react to market trends; they anticipate them,” she says. 

Pranculeviciute also perceives these future leaders as curious learners and bold collaborators. 

“Whether it is improving straight-through processing with automation or co-creating innovative products for emerging risks like cyber or climate, they are solving problems that legacy thinking cannot. What sets them apart is this: they think like actuaries, operate like technologists, and lead like entrepreneurs,” she explains. 

Senior vice president and managing director at The Jacobson Group, Judy Busby, views the best young professionals as having a combination of intellect, empathy, plus technological and emotional intelligence.  

“These traits, along with a zest for learning – whether it’s through certification programs or continuing education – will enable individuals to showcase their strengths while staying relevant throughout their careers,” she says. 

Considering the use of AI and embracing technology common among 2025’s Rising Stars, Busby also feels this will pay dividends throughout their working lives. 

She adds, “By building your knowledge base and remaining future-focused, they will have the transferable skills and business perspective to be successful as their career evolves.” 

 

Insurers that focused on modernizing technology and improving their data, analytics and artificial intelligence (AI) capabilities are now able to incorporate generative AI (gen AI) as a natural next step on their reinvention journey.

Gen AI is changing everything. It is being used throughout the value chain to improve customer interactions, streamline operations and support decision-making. Insurers are using it to boost efficiency in operations and corporate functions and improve the speed and accuracy of underwriting and claims processing. Commercial and specialty property and casualty (P&C) carriers are using it to handle huge volumes of broker submissions, quickly extracting data and improving the way they use classical AI for comparative risk analysis and propensity-to-win modeling.

The impact of gen AI is already being felt across the insurance industry, with unique benefits and challenges for P&C, Life, Group Benefits and Reinsurance carriers. Some companies are using gen AI as a catalyst for reinventing their digital core, discovering new ways of working and reimagining how they serve their customers. Each company will find its own path forward with this technology. This paper covers five requisites that must be addressed when crafting a gen AI strategy:

Lead with value

Gen AI opens up new opportunities for natural language interaction, operational efficiency and decision support for insurers. It can drive material impact on combined ratios with contributions across underwriting, claims, service and general expenses. And while it has the potential to impact the full insurance value chain, we see the greatest potential in underwriting/distribution and claims.

Underwriting/distribution

According to our research, 40% of the average underwriter’s time is spent on administrative and other non-core tasks. Those demands are exacerbated by surges in submissions, creating more process churn without capturing commensurate additional revenue.

Gen AI can help insurers win more business and drive greater value by boosting efficiency in underwriting. It uses automation and task augmentation to help underwriters handle more tasks, work more efficiently and reach better decisions faster. For example, gen AI supports intelligent email and ingestion with its ability to extract key data from submission documents and create structured outputs that can accelerate risk assessment and pricing. It supports data enrichment and decision-making, allowing underwriters to augment submission information with data from verified third-party sources. This information is then automatically populated in an underwriting dashboard, eliminating multiple rounds of Q&A between brokers and underwriters.

Gen AI is a win-win for carriers as well as brokers. With gen AI, carriers have the potential to process 100% of submissions, double their submission-to-quote rates and reduce premium leakage from missed underwriting controls. Brokers can expect easier interactions with carriers and can deliver quotes to their customers in hours rather than days or weeks.

QBE, a multinational insurance company headquartered in Sydney, is a prime example. We worked with them to scale industry-leading AI-powered underwriting solutions replicated across multiple regions and lines of business. They are now able to make faster, more accurate business decisions and greatly accelerate market response time. In the first year, these solutions won multiple industry innovation awards. Early results also indicate an increase in both quote-to-bind rate and premium.

Claims

Gen AI can also drive significant value in claims processing and outcomes, both for frequency and severity claims.

The majority of claims volume, but a minority of claims payouts, have indemnity decisions that can be arrived at via parametric or rules-based indemnity decisions. These frequency claims are well suited to straight-through processing using AI and gen AI. The claims can be assessed and resolved quickly, dropping the aggregate cycle time from days to minutes.

Medical management and litigation costs are typically the largest drivers of claims indemnity and expense. For litigated claims, gen AI can ingest unstructured litigation demand packages, enabling comparable file insights to be gleaned from the carrier’s litigation portfolio to help drive proactive resolution. For claims with medical exposure, such as litigated claims with medical damages, bodily injury and workers’ compensation claims, gen AI can ingest and aggregate medical documents to improve multiple aspects of medical management, including developing accurate timelines, categorizing medical expenses and identifying treatments that may be inconsistent with standards of care.

Using gen AI in claims can also improve rating and pricing activities. As a best practice, carriers can incorporate learnings extracted from unstructured claims data into a feedback loop for underwriting to guide future decisions, guidelines and appetite.

Many of the underlying capabilities that provide material efficiency in claims and underwriting, such as intelligent email creation and ingestion, are reusable solutions that can also benefit back-office functions such as invoicing, contracting and employee onboarding. An investment in gen AI can and should be used to drive value across the entire organization. 

Reinvent talent and ways of working

Workers across many industries are concerned about being replaced by gen AI. In the insurance industry, the change is far more likely to be in augmenting, not replacing, human activity.

For example, regulation and licensing still require that licensed claims and underwriting professionals make and communicate decisions. In many cases, these professionals must meet requirements for where they are located and must be employees of the carrier. Unless requirements change, these roles cannot be replaced by AI.

In fact, both automation and augmentation with gen AI will create daily benefits for workers. Our research shows that 29% of working hours in the insurance industry can be automated by gen AI, relieving workers of many of their more mundane and tedious tasks. Thirty-six percent of working hours can be augmented by gen AI, which helps workers and insurers as the industry faces staffing shortages due to an aging workforce and competition for talent.

Gen AI will transform how companies build the insurance workforce of the future. Senior underwriters and claims handlers will be able to focus more on higher-level analysis, portfolio optimization strategies and business development. Junior associates will have shorter learning curves for onboarding supported by co-pilot or agent-assisted AI solutions. They will use gen AI in a natural, conversational way to deeply understand and manage business rule taxonomy, generate insights and produce accurate pricing, rating, indemnity decisions and communications.

Close the gap on responsible AI

Responsible AI is vital as the technology matures and becomes more autonomous. AI governance and principles must be in place from the start. For insurers, this means implementing systematic testing and monitoring across both quantitative and qualitative dimensions to manage risk with the highest ethical standards.

Controls focused on data privacy, cybersecurity and sustainability help insurers stay compliant as regulatory requirements inevitably increase. Insurers hold a position of trust when storing and processing sensitive data belonging to customers and partners. Quantifiable measures help demonstrate the insurer’s due diligence amid escalating cyber threats. They also help in aligning the insurer’s AI strategy with Net-Zero and other corporate sustainability goals by measuring impacts related to increased compute and storage use.

Qualitative controls that improve transparency, explainability, accuracy and safety are just as important. For many customers, insurance products can be difficult to understand. This can be compounded in communities where a legacy of discriminatory practices has undermined industry trust. For employees and partners, it’s crucial that insurers evaluate safety concerns and take action to mitigate harm. A Human by Design approach can help create human-like experiences that engender trust by making it easy and intuitive to find information.

A responsible and ethical AI experience is especially important in underwriting and claims. The historical data that LLMs ingest can be biased by previous decisions or may differ across geographies. AI governance can increase fairness and accountability and prevent coded bias and inaccuracies. The risk of “garbage in” needs to be understood and mitigated with documented enterprise-wide governance structures with clear roles, responsibilities and policies.

Build an AI-enabled, secure digital core

Realizing the full power and potential of gen AI requires a strong digital core and a secure cloud. With a simplified cloud infrastructure, insurers can build a data and model backbone that integrates with core systems and supports the needs of AI.

Cloud

For many large organizations, moving more operations to the cloud can create a level of complexity that’s hard to manage. A Continuum Control Plane provides a unified command, control and decision support center to help address that complexity. It orchestrates infrastructure, applications, data, network, people and processes and simplifies cloud integration across a range of vendors. This unified control center delivers stability, agility, speed and certainty for cloud-based companies while improving visibility across the enterprise.

Security

Security is crucial for operational resilience and data protection. The threat landscape is shifting with more bad actors infiltrating and disrupting business operations. This is compounded by quantum computing advancements, which are making traditional encryption methods less effective. Insurers and their partners will need to implement systems that reduce the risk of breaches and adopt standardized algorithms for protecting vital information in a post-quantum world.

Data

Insurers have access to a wealth of data that customers expect them to protect and that can be tapped to create value. This includes organizational data such as policyholder information and claims history, derived or synthetic data such as underwriting evaluation notes and scenario test data, and third-party data such as climate and market data, vehicle records and property details. This data should be held in a modernized data platform leveraging technologies like vectorDBs and knowledge graphs, which can augment existing analytics capabilities and support the processing needs of LLMs.

Models

Foundation models like Claude in Amazon Bedrock or the GPT suite of models on Microsoft Azure can be integrated seamlessly with the primary cloud stack. As needs become more complex, it’s important to reassess how priorities are weighted and fine-tune, retrain or build a new model as needed to address goals and market realities. A model switchboard allows models to be dynamically adjusted depending on the weight assigned to various priorities such as accuracy, efficiency and cost.

Platforms

The AI and gen AI capabilities of core insurance platforms are evolving quickly. For P&C insurers, Duck Creek Technologies and Guidewire have embedded AI into their products. The same is true of EIS and Vitech in the retirement/pensions and group benefits space. At Accenture, we’ve embedded AI and gen AI throughout our Accenture Life Insurance and Annuity Platform (ALIP) with cloud-managed services that include an AI-led user experience with conversational AI navigation and intelligent alerts.

Embrace change and continuous reinvention

Gen AI is already deeply embedded in the insurance industry. Insurers are well past experimentation and defining use cases; many are already seeing material economic gains as they scale their AI and gen AI investments for continuous reinvention.

Continuous reinvention involves disciplined replication and re-use—two keys to scaling gen AI quickly across a large organization. Multiple lines of business in claims or multiple products in underwriting may be able to use the same user interface (UI) and user experience (UX) for gen AI implementations. In fact, investments in UI/UX, front-end and back-end coding, rule and prompt libraries and data modernization can often be leveraged across the value chain.

With gen AI, insurers are accelerating their reinvention journey. They are building both the culture and capability for continuous reinvention by centering every function in the value chain around a modern digital core. They are using gen AI to bring the best of humans and technology together, defining the future of the insurance industry.

 

For insurance producers, changing agencies might be as simple as signing a waiver. Other times, a producer changing agencies may leave the producer, agency officials, and even carriers with a legal maze of contracts, agreements, and state reports to navigate.

There’s a variety of reasons this is a tetchy subject—producers want free agency, carriers and agents need some degree of producer buy-in to maintain compliance and have a predictable distribution channel, everyone wants to retain commissions, states need accurate data on responsibility, and, somehow, consumers must be protected, as well.

Balancing these interests is no small feat. Let’s dig into the challenges of changing agencies, some practices stakeholders apply to mitigate issues in their distribution channels, and how modern hierarchy management can help carriers and agencies (but especially carriers) keep it all straight when they’re figuring out commissions.

Why do insurance producers change agencies?

For an insurance producer, there are many reasons to change agencies: Some agencies take a smaller-than-standard override on contracts, letting the producer keep more of the commission money in their pocket. Others have superior service options—like creative design services or a stellar digital marketing platform. Some agencies have technology that helps producers spend more time in front of clients and less time doing ticky-tacky compliance maintenance.

Culture is also a factor. For many independent agents, the agency is as close as they get to having a built-out team. Having an agency that makes you feel like part of a team can be a serious differentiator. And, of course, some agencies have exclusive relationships with carriers to be the single retailer for certain products.

Whatever the reason, a producer who’s looking to change agencies but keep their carrier appointments will have some considerations before jumping ship.

What do carriers require when their appointed producers change agencies?

Carrier requirements for producers who change agencies vary greatly from carrier to carrier, and also depend on the states where the carrier has appointed the producer.

This may not be a significant issue if the new agency has a completely different set of carrier contracts than the previous one. But, if a producer’s new agency has a contract with their old carriers, it may be difficult to get going under the new agency contract.

Much of the drama in agency changes has to do with a producer’s previous book of business. Often, an agent will see changing agencies as an opportunity to review client coverage. But this can be a sticky wicket—is a producer helping a client upgrade their coverage and contract, or are they churning contracts for the sake of getting a first-year commission and adding the client to the new agency’s book of business?

We’re not here to impugn anyone’s honor; the reality is this situation presents a strong potential for conflict of interest. So, some carriers require producers to get signoff from a previous agency for any contracts they move over to the new agency. Frequently, that includes a form or other verification the agent has to fill out testifying that they explained the contract differences to the client.

Carriers often require a release from the previous agency, as well, verifying the status of the agent. This may be:

• The agent is in an open relationship with both agencies—still able to sell through and earn trailing commissions from their old agency book of business while taking advantage of new opportunities with a new agency.
• The agent may be terminating their relationship with the old agency and leaving that book of business in favor of an exclusive contract with the new agency.
• The agent may be in what we’re going to call a “bad breakup,” where there are some disputes and the carrier will ultimately put them on a sort of probation, decline to allow them to write products through the new agency, or otherwise find a different path for this particular producer partnership.

Since a carrier provides products and is also cutting the check for commissions, being accountable for where the money goes is paramount.

Agency contract—new and old

If a producer doesn’t know what their current agency contract is, they’re gonna have a bad time. Some agency relationships are open—they’ll take what they can get, and if a producer has other lucrative options, they’re free to pursue them. Other agencies are pretty territorial and demand exclusivity for certain products or lines of authority.

Even within these requirements, agency relationships are not binary. Some agencies provide a tier of benefits based on a quota or have a contract with producers that mandates a producer write a certain amount of business to “buy out” the contract.

This means a producer might change to a new agency that has a contract with the same carrier as the old agency, but, if the producer owes the old agency a certain amount of submitted business, the carrier has to be in-the-know. To further complicate things, if the producer is writing through a downstream firm, the agency and carrier may have multiple levels of contracts to consider when cutting up the commissions check.

For agencies, while quotas and contracts are traditional methods for keeping a producer and their business locked in, another option is to keep the producer separate from the book of business from the get-go. So, agencies may employ producers as licensed-only agents or through other contractual relationships that mean the person making the sale isn’t necessarily servicing the consumer’s business.

Carriers and producers moving agencies

To bring the discussion back around to the role of carriers in this system, the issue of a producer changing agencies is tiresome. If the producer is an independent agent, they may want to be affiliated with multiple agencies. Or they may be exclusive to an agency but want to switch for reasons that could make a very real difference in their business and personal life.

Yet, for carriers trying to do their diligence in tracking producers for compliance’s sake, and tracking agency affiliations to effectively pay commissions to the right parties, this shifting structure can be a paperwork nightmare.

To complicate matters, only a single state (*cough cough,* Washington, *cough cough*) maintains affiliations lists at the state level, and states have completely different processes to approach affiliations, when they require agencies to record or report them at all!

The difficulty of tracking and accurately reflecting agency hierarchies to pay out commissions or ensure you’re providing the right person with notices for contract changes isn’t just for carriers. Agencies that work with other firms and business entities up and down the compliance channel have the same needs to understand their complex distribution relationships.

How AgentSync helps when producers change agencies but not carriers: Hierarchy Management

When a producer changes agencies, every other agency or carrier that includes that producer in their hierarchies has a fire drill. From adding them to contracts to adjusting commission payouts to simply reflecting who’s responsible for whom in terms of DRLPs and direct reports, this data management work gets repeated over other systems and software.

AgentSync’s Hierarchy Management eliminates the drama by allowing your operations team to change the producer’s record to reflect their new status. With an API-driven modern solution, once that change is made, every instance of that producer’s data automatically realigns to reflect the new structure. No mistaken commissions payments, no repetitive data entry, no friction with old and new agencies.

Consider: You partner with a series of branch agencies under various doing-business-as relationships in one state while their parent agency is licensed as a resident business entity in a different state, all with downstream independent agent distributors. Mapping those relationships on paper begins to look like the mythical hydra. But with AgentSync Hierarchy Management, you can see who reports to whom and where, so you always know which producers and agencies are connected and in what way.

To learn more about how you can end paperwork whack-a-mole when your downstream producers change agencies, watch a demo or schedule a personalized consultation.

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Agencies