Recent efforts to curb federal spending – particularly massive proposed cuts to several major federal science agencies and numerous FEMA grant programs – drew concern from panelists at Triple-I’s Joint Industry Forum in Chicago.
Slated to lose around half of their original budgets, organizations like the National Oceanic and Atmospheric Administration (NOAA) and the National Science Foundation (NSF) provide insurers with much of the research data needed to model climate risks, at no cost to insurers nor the broader public. Abolishing this research, which also enables daily weather and natural disaster forecasting, will increase underwriting costs and those associated with various other industries, including transportation, agriculture, and energy.
“Federal science agencies probably facilitate more economic activity in the country than any other federal agency,” said Frank Nutter, president of the Reinsurance Association of America (RAA). “Fully funding and restaffing those agencies is pretty critical.”
A host of cancelled FEMA mitigation programs have left dozens of catastrophe-prone communities without aid – including projects that were approved before the cuts. Ending the Building Resilient Infrastructure and Communities (BRIC) program, for instance, rescinded approximately $882 million in climate resilience funding — “money we could have spent on mitigation, so we don’t have to spend so much after a disaster,” said Neil Alldredge, president and CEO of the National Association of Mutual Insurance Companies (NAMIC).
Nutter added that “weighing against safety, teacher salaries – all the kinds of things that communities grapple with,” most former grantees lack the resources for “risk reduction or municipal projects and infrastructure” without federal investment.
Population growth in high-risk areas exacerbates the issue, Alldredge said.
“If you look at a map of this country and the population changes from 1980 to today, we have moved the entire population to all the wrong places,” he explained. Building properties capable of withstanding these weather patterns – let alone insuring them – has launched the industry into “a new era of risk.”
While the panelists agreed that opportunities to improve FEMA operations exist, they questioned President Trump’s consideration to disband it entirely by shifting to a state-based relief system.
David Sampson, president and CEO of the American Property Casualty Insurance Association (APCIA), noted that “the very nature of a natural disaster means that it overwhelms the local entity’s ability to respond,” rendering any state-based solution “unworkable.”
“I think we as an industry know where the low-hanging fruit for reforms are,” Sampson continued, because “we interact with FEMA on the ground after disasters.”
State-level legislative momentum
Though the Trump administration’s current plans do not bode well for the future of disaster resilience, insurers celebrated many state legislative wins this year regarding tort reform, notably in Georgia and Louisiana.
“Even at the federal level, there is a growing sense of awareness of the negative impact that an out-of-control tort system is taking on the economy and the American consumer,” Sampson said, highlighting a new bill that would impose taxes on third-party litigation funding.
Florida also successfully resisted challenges to its 2023 and 2024 reforms, which have already helped stabilize the state’s insurance rates and attracted new insurers after a multi-year exodus. Charles Symington, president and CEO of the Independent Insurance Agents & Brokers of America, pointed out that industry advocacy is crucial to tort reform survival.
“Once you get these beneficial pieces of legislation passed,” he said, “we have to fight the fight in every legislative session.”
Symington then contrasted Florida’s recovering market with California’s enduringly hostile regulatory environment, propelled by the 1988 measure Proposition 103.
Insurance Commissioner Ricardo Lara has implemented a Sustainable Insurance Strategy to mitigate the effects of Prop 103 – such as by authorizing insurers to use catastrophe modeling if they agree to offer coverage in wildfire-prone areas – but the strategy has garnered criticism from legislators and consumer groups.
“California doesn’t have the assessment ability like Florida does,” agreed moderator Fred Karlinsky, shareholder and global chair of Greenberg Traurig, LLP. “California is three decades behind.”
As insurers adjust their risk appetite to reflect these constraints, more property owners have been pushed into California’s FAIR Plan – the state’s property insurer of last resort.
“Our members are having to cobble together coverage,” said Joel Wood, president and CEO of the Council of Insurance Agents & Brokers (CIAB), who noted that the FAIR plan’s policyholder count has more than doubled since 2020.
Natural disasters like January’s devastating wildfires underscore California’s need for premium rates that adequately reflect the full impact of these risks, which is essential to the continued availability of private insurance in the state.
“When you have the right leadership in place – the governor, the state legislature – and you have the industry being effective in our advocacy, then we can improve these difficult marketplaces,” Symington concluded.
This post is part of a series sponsored by AgentSync.
Since his inauguration in late January, President Donald Trump has imposed (and pledged to impose) several tariffs affecting nearly all U.S. imports. While the somewhat sporadic nature of these actions makes predicting the full extent of their future consequences difficult, examining what we know about tariffs, their impact on prices, and the ins and outs of the P&C insurance sector can give us a general idea of what may be in store.
Spoiler alert: There could be rougher times ahead for P&C insurers and policyholders.
Tariffs: What are they and how do they impact prices?
Today’s Econ 101 lesson: Tariffs—aka taxes charged on goods imported from other countries. Typically, tariffs are represented as a percentage of a product’s value and are paid directly to the government by the company bringing the foreign goods into the country. While the general idea of tariffs is that the importer pays the duties, the reality is that often the end consumer bears at least some of the cost.
To illustrate the effect on end consumers, let’s use the Trump administration’s 25 percent tariff on all agricultural imports from Mexico. In this example, a U.S. grocery store that imports 20-lb bags of bell peppers from a farm in Guadalajara now has to pay for the price of a bag plus a 25 percent tax that goes directly to the U.S. government. To safeguard their profit margins, the grocery store may choose to pass some (if not all) of the increased expense onto its patrons by raising the price of bell peppers. All of a sudden, family dinner night costs a little bit more.
But what does any of this have to do with P&C insurance? Trump’s tariffs would affect more than just agricultural imports, with analysts predicting higher prices across a range of goods from lumber, to sneakers, to chocolate, to cars. The on-again, off-again actions regarding new levies have thrown the stock market into turmoil as investors grapple with increasing levels of uncertainty regarding the future of the U.S. economy. Property and casualty insurers are no less concerned, as any increase in the cost of imported home and auto building and repair materials will ultimately drive up claims costs, putting already-strained solvency ratios to the test. Let’s explore the impact Trump’s tariffs could have on the value of two commonly insured assets: homes and cars.
How tariffs impact homeowners insurance premiums
According to the National Association of Home Builders, the U.S. imported an estimated $14 billion in residential construction materials in 2024, including lumber from Canada and lime and gypsum products from Mexico. Builders expect the new tariffs to increase the cost of construction materials for the average U.S. home by just under $11,000. When the price of materials increases, so does the price of repairing property damage. In other words, a homeowner that needed $500,000 in dwelling coverage in 2024 would now need at least $511,000 to cover tariff-related price increases. Economists predict these price increases will lead to higher claims payouts for P&C carriers in the short term and ultimately increase premiums for homeowners.
Higher auto-repair costs mean higher claims costs, which could necessitate higher premiums as carriers adjust their pricing models to more accurately reflect their risk. Premium hike predictions are already rolling in, with industry experts at Insurify forecasting a 19 percent increase in full-coverage auto insurance prices by the end of 2025. However, the changing nature of the tariffs makes it impossible to pinpoint an accurate number at this time.
Tariffs threaten an already-fragile P&C landscape
The P&C industry relies on affordable materials for property repairs and replacements as part of claims settlements. The higher claims costs for construction materials and auto parts directly impact carriers’ profitability as they scramble to re-define their pricing models to keep up with price increases and battle with state regulators attempting to shield policyholders from unfair premium hikes.
To make matters more complicated, P&C insurers are already facing tight profit margins due in large part to the increased frequency and severity of large-scale natural disasters. Coming off a rather volatile past few years, insurers that were just starting to see an improvement in their combined ratio are now left bracing for a further blow to their profitability as a result of the new tariffs.
The path to profitability: 3 options for P&C carriers
Given the above, things may be feeling a bit bleak for P&C carriers at the moment. But one thing that we know for certain is that the insurance industry and the 3 million or so people working in it are nothing if not resilient.
Below are three paths carriers could take to limit their risk and remain profitable despite shifting market conditions. The most proactive carriers will implement some combination of all three to not only survive current tariff-related threats to profitability, but to better face future challenges head-on.
1. Practice more proactive underwriting
The rapid nature of tariff fluctuations makes it difficult for insurers to respond both quickly and accurately to their increased risk. But, by prioritizing frequent actuarial reviews and periodically modeling best- and worst-case scenarios, carriers and state regulators can better understand the financial impact various tariff actions may have on claims costs.
When it comes to more accurate underwriting, data is key. Successful carriers are already leveraging data and analytics to improve theirunderwriting and, as data collection and analysis tools continue to advance, we expect more carriers to harness their large volumes of real-time and historical data for improved underwriting and claims predictions. In the case of impending tariffs, P&C insurers may consider incorporating data points like geopolitical risk scores and supply-chain exposure measures into their underwriting models.
2. Get innovative with policy offerings and design
To get ahead of the rising cost of construction and repair materials, carriers might turn to innovations in their policy offerings and pricing models. One option is for P&C insurers to introduce escalation clauses into their policies that automatically adjust coverage limits in the event of increased costs. These clauses leverage Producer Price Index data in their pricing models to offer financial protection despite construction material tariffs for:
Carriers: by allowing them to adjust policy prices to more accurately reflect their risk
Policyholders: by preventing them from being underinsured against future damages
In response to ongoing P&C market volatility, carrier and agency boardrooms are shifting their focus to operational efficiency and risk reduction. When market uncertainty threatens profit margins, carriers should consider any opportunity to increase efficiency in their internal processes and reduce their overhead costs. With so many moving parts, understanding your insurance business’ current state is a challenging but crucial first step toward improving resilience and reducing risk.
Luckily, carriers can assess the strength of their current distribution channel strategy using this interactive assessment. Once you’ve received your results and diagnosed your level of maturity across five key areas of distribution strategy and execution, you’ll gain a clearer picture of where and how to mitigate risk and expense from your operations.
In sum, while the goal of the tariffs may be to increase domestic production, they’ll also introduce significant inflationary pressures on the price of consumer goods that’ll impact P&C insurers and policyholders. The insurance sector will need to find innovative ways to adapt to the changes if it wants to keep its long-standing promise of protecting policyholders while also remaining a stable and profitable career field.
Analysis based on granular, cutting-edge data is essential to staying ahead in our rapidly shifting risk landscape. During Triple-I’s Joint Industry Forum in Chicago, two “Risk Take” presenters dove deep into the innovative data initiatives they engaged in to help turn these challenges into new opportunities for insurers.
Balancing consumer needs
With natural catastrophe frequency and supply chain uncertainty on the rise, so are home maintenance costs. Estimated to exceed $10,000 annually in 2024 – at a 5.9 percent year-over-year increase – home maintenance further weighs against the mounting costs of premium rates and property taxes across the U.S., leading many homeowners to forgo investing in at-home risk mitigation like smart home telematics.
“Across the providers we’ve talked to, adoption of telematics falls somewhere between the single digits,” said presenter James Bilodeau, CEO and founder of PreFix Inc. “The reason is simple: the value proposition of what we would like homeowners to do isn’t important enough compared to what homeowners actually need.”
For Bilodeau, the solution is also simple: combine advanced technology with routine preventative maintenance. By providing personalized, year-round home repair, Bilodeau’s Texas-based firm aims to mitigate losses while gathering unique primary data on the properties they service. Insurers can use this data to develop telematics technology and more accurately price the associated risks.
Such data collection “creates a flywheel in which we help our partners delight their customers with exceptional service and hit directly at affordability issues, both with home maintenance and in premium reduction,” Bilodeau said.
After a successful pilot program, USAA expanded its partnership with the company to offer discounted maintenance services to members who sign up for PreFix. Noting that the company is pursuing partnerships with other major insurers, Bilodeau highlighted that industry collaboration is crucial to not only facilitate more refined coverage but to lower the cost of entry to enhancing resilience.
Emerging public safety risks
An eightfold increase in New York City fire incidents between 2019 and 2023 correlates strongly with the growing popularity of e-mobility devices, according to a joint report by UL Standards & Engagement (ULSE) and Oxford Economics that is based in part on Triple-I data.
Presenting on the report, ULSE Director of Insights Sayon Deb explained how lithium-ion battery fires linked to e-bikes and scooters became a mainstream risk for COVID-era urban environments, due in part to the booming online food and grocery delivery market.
“Nearly $519 million worth of damages were caused in just four years from structural property damage, injuries, and loss of life,” Deb said, pointing out that this figure does not account for “the additional cost of communal fear, in terms of fires happening across the hallway from you, and also the loss in economic opportunities and the community toll that it takes as we respond to these fires.”
Inadequate public safety awareness, paired with the easy availability of uncertified devices, helped fuel the crisis. Beyond overusing or incorrectly charging the devices, e-mobility users often left them in dangerous locations, with “66 percent of those who charge at home charging their devices near their exit,” Deb explained – effectively “blocking your exit from your home in the event of a fire.”
E-mobility regulations vary wildly by state. Though New York City regulations passed in 2023 show progress, ULSE recommends more proactive public outreach, safety standard enforcement, and incident reporting to better track e-mobility risk data.
“The better the data we collect, the better we can understand where, how, and why these battery fires occur, so that we can prevent future fires from happening,” Deb concluded.
The deliberate action to obfuscate source code refers to the intentional transformation of programmatic logic into a form that is exceedingly difficult for humans to interpret, while remaining functionally identical from the standpoint of machine execution. This technique, while deceptively simple in conceptual premise, occupies a crucial position at the intersection of cybersecurity, intellectual property protection, and strategic business operations in the digital age.
Obfuscation is not encryption, though the two are often conflated. Whereas encryption renders data entirely unreadable until decrypted—thereby necessitating additional runtime processes to restore operability—obfuscation preserves the code’s machine operability while simultaneously degrading its legibility to human observers. It is, in essence, a form of asymmetric information architecture: intelligible to the machine, opaque to the adversary.
Developers and technology firms employ code obfuscation for a variety of interrelated purposes. Primarily, it serves to safeguard proprietary logic from reverse engineering, thereby impeding intellectual property theft. It also introduces substantial barriers to tampering and unauthorized modification—particularly important in contexts where software is deployed in hostile or semi-trusted environments. Furthermore, obfuscation can obscure business-critical algorithms, data flows, or security mechanisms, thus raising the cost of cyber intrusion for would-be attackers.
In the competitive milieu of contemporary technology startups—where first-mover advantage is often fleeting and codebases may represent the totality of a firm’s monetizable assets—the protection of source code is not merely a technical best practice; it is a fiduciary responsibility. The use of code obfuscation should be viewed as one component of a broader strategic posture encompassing secure development practices, intellectual property management, and cybersecurity risk mitigation.
Programmers obfuscate (from the Latin obfuscātus) source code to prevent it from being stolen, make it more difficult to tamper with, and secure valuable or sensitive information about the function of the code.
Unlike encryption, obfuscation only makes data difficult to understand for humans. Since the data remains machine-readable, obfuscating source code protects the code from cybercriminals without adding extra steps like de-encryption that may slow down the program’s run time.
In the competitive world of technology-based startups, intellectual property is often the highest-value asset a company owns. Implementing obfuscation techniques is an essential step to protecting IP from theft by competitors.
Why Is Source Code So Hard to Protect?
Typically, valuable data and information are protected by restricting access.
For example, sensitive client files are kept secure in password-protected, encrypted accounts that are difficult or impossible for criminals to breach.
However, source code is visible to anyone using a program, so access prevention methods can’t be used to secure the code or any information stored within it.
Instead, programmers can “disguise” the code via obfuscation so that it looks nonsensical to humans but is still machine-readable. This will prevent hackers from misusing the code while allowing the program to run as designed.
Obfuscation software can be used to automatically apply different obfuscation methods to sections of code, or programmers can select portions of data and obfuscate them by hand.
How to Obfuscate Source Code & Data
There are many different methods for obfuscating data. To strengthen code protections, programmers can mix and match different techniques throughout the code to make it even more difficult for hackers to read.
Below, we’ve outlined some of the more common techniques for effectively obfuscating data.
1. Alternate Code Forms
Translate short sections of the code into different forms throughout the program to make deciphering it more difficult without affecting run time.
For example, you can translate parts of your code to binary language, or replace a function with a table lookup of all possible values the function might produce.
2. Change Up Data Storage Methods
Make your data more difficult to read by essentially “hiding” your data using different memory types and locations. Alternate between storing variables locally and globally to conceal how the variables work together.
You can also randomize the addresses at which parts of code are located to create an additional level of confusion and make the code more difficult to read.
3. Randomize Aggregation Patterns
Another way to confuse hackers is by packaging your data in random sizes. For example, you might break arrays into an unnecessarily high number of sub-arrays to confuse any reverse engineering attempts.
4. Encrypt Strings
Though encryption isn’t an effective method for protecting your entire source code, you can use encryption as part of the obfuscation process without slowing the program.
Select individual keys, code strings, and other pieces of information to encrypt to create hacker “blind spots” in the code.
5. Interrupt Code Flow
Add unnecessary statements or “dead code” to your program to make it difficult to figure out what parts of the code contain real data.
Dummy code can also be used to conceal the pathways by which program control is passed between sections of the codebase.
6. Remove Debug Data
Debugging information can be used by hackers to reverse engineer a program’s source code, so it’s wise to obfuscate debug information by changing line numbers and file names.
Alternatively, you can entirely remove debug information from your program.
7. Obfuscate Assembly Code
Concentrate obfuscation efforts on assembly code to make it especially difficult to reverse engineer.
Many programmers like to hide assembly code within other code in a sort of Russian nesting doll pattern called the “jump-in-the-middle” technique, which will prevent a disassembler from producing the correct outputs.
8. Renew Obfuscation Tactics Regularly
Employ a schedule of obfuscation tactic renewal and refresh the techniques you’ve used throughout the code.
Vary the pieces of information you’ve hidden and encrypted, and alternate between tactics in different portions of the code.
Using multiple tactics to thoroughly obfuscate source code and refreshing obfuscation regularly will protect your startup’s IP from the majority of potential hacks.
By pairing your programmer’s attack prevention efforts with protection against a worst-case scenario, you’ll be able to keep your company safe no matter what happens.
To learn more about the policies that are right for your business, check out Embroker’s digital insurance platform.
As 2024 draws to a close, it’s a good time to reflect on what the insurance industry achieved, what surprised us and how longer-term trends progressed.
From an industry results perspective, 2024 was a strong year. Buoyed by rate increases and continued (but diminishing) interest rates, carriers sawglobal insurance premiums grow by 4.6% in 2024, outperforming the 1.6% average of the past five years. Growth was driven by life insurance, with a decade-high 5% in 2024, while non-life growth was 4.3%, up from 3.1% CAGR of the last five years, due to the impact of the hard market. Life and non-life premiums accounted for 43% and 57% of total premiums in 2024. Steady economic growth and resilient labor markets continued to support the industry.
Qualitatively underlying these financial and operating results, we observed the following:
AI drove material economic impact.
As reported by C-suite clients surveyed by Accenture globally, 87% of carriers (91% P&C; 82% L&A) achieved material financial benefits from gen AI usage. The industry has monetized robust, production solutions for enhanced Underwriting and Claims settlement for segments of the book. But, in a world of ever-rising expectations, the demand is now for impact “at scale” (i.e., moving from impactful individual use cases to impact across functional or value chain domains).
Insurers met increasing demands on core functions with alternative talent strategies.
The underwriting function, which has long struggled with an aging workforce and outdated processes, got some relief in 2024 with AI and gen AI allowing senior underwriters to use their expertise in higher value areas such as business development and negotiation. A prime example is QBE, which is scaling industry-leading AI-powered underwriting solutions replicated across multiple lines of business. With AI, QBE can now process (i.e., ingest and extract insights from) 100% of submissions received from brokers and drive higher quote-to-bind rates with Underwriters focused on the highest value submissions.
Insurers also executed strategies to address increasing regulatory and capital requirements without increasing headcount by drawing on talent pools outside their organizations and in lower-cost locations. For example, many insurers and reinsurers sourced high-end actuarial, loss/CAT modeling and capital allocation resources from India where there is a growing actuarial talent pool.
Optimizing operating models and segment growth was a recurring theme.
Cost reduction efforts in recent years had many heads of divisions and business units looking for greater autonomy and control of costs. In 2024, we saw insurers across lines of business and geographies thinning out the corporate center and emphasizing optimization or strategic realignment of their operating models and greater leadership focus on customer and product segments.
Shifts in the risk landscape drove cross-sector growth strategies and capital reallocation.
Recognizing the growth potential in the health sector, insurers are building health businesses and exploring opportunities in emerging health risks. For example, Aviva Insurance Ireland is backing Level Health, an insurance business that offers customers lower costs on a variety of plans. Meanwhile, FWD Group is addressing emerging health risks among gamers in the Philippines, offering insurance solutions for gaming-related risks, such as vision problems, insomnia and migraines. Care navigation, remote mental health and telehealth services also increased with the combined digital health market growing to $172 billion, a 16% increase.
Retirement took center stage in 2024. Concerns about longevity risk and retirement readiness fueled attention and the need for change. As investors took advantage of higher interest rates and questioned whether defined contribution and public programs can provide adequate retirement income, annuities set sales records for a fourth consecutive year. In China, workers covered by the public system for basic pension insurance were allowed to voluntarily open private pension accounts, alleviating some of the systemic stress from a rapidly aging population. And more Millennials, poised to benefit from the Great Wealth Transfer and lacking interest in traditional career paths, gravitated toward the Financial Independence, Retire Early (FIRE) movement.
Prevention mindsets offer service revenues and reduced losses.
Risk mitigation as table stakes now has more insurers and their customers turning to prevention of injury and illness. In the U.S., 90% of new vehicles offer standard automatic braking. And in 2024, the global advanced driver assistance systems market increased 17% (Statista). Finally, genetic cancer screening and MRI scans, like those offered at a discount to John Hancock customers through their partnership with Prenuvo, enable early detection and better mitigation of health, disability and mortality risk.
Looking ahead to 2025
As we move into the holidays, there is reason for optimism. The insurance industry continues to operate from a position of strength.
The American Civil Liberties Union filed a lawsuit Wednesday on behalf of a 14-year-old student who said a teacher humiliated her for refusing to stand for the Pledge of Allegiance in protest of U.S. support of Israel’s war in Gaza.
Danielle Khalaf’s teacher told her, “Since you live in this country and enjoy its freedom, if you don’t like it, you should go back to your country,” according to the lawsuit.
Danielle, whose family is of Palestinian descent, declined to recite the Pledge over three days in January.
“We can only marvel at the conviction and incredible courage it took for her to follow her conscience and her heart,” ACLU attorney Mark Fancher said.
The lawsuit says her teacher admonished her and told her she was being disrespectful.
As a result, Danielle “suffered extensive emotional and social injuries,” including nightmares, stress and strained friendships, the lawsuit says.
The ACLU and the Arab American Civil Rights League said Danielle’s First Amendment rights were violated, and the lawsuit seeks a financial award.
“It was traumatizing, it hurt and I know she could do that to other people,” Danielle said at a news conference in February, referring to the teacher’s treatment.
At that time, the school district said it had taken “appropriate action,” though it didn’t elaborate.
“Discrimination in any form is not tolerated by Plymouth-Canton Community Schools and is taken very seriously,” the district said.
The school district declined Wednesday to comment further, citing the litigation.
Michigan has more than 300,000 residents of Middle Eastern or North African descent, second in the U.S. behind California, according to the Census Bureau.
Copyright 2025 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Global economic uncertainty emerging from recent U.S. policy actions was a major concern for thought leaders on the “Economics, Underwriting, and Geopolitics” panel at Triple-I’s Joint Industry Forum in Chicago.
Despite recently posting its most favorable underwriting performance since 2013, the property/casualty insurance industry faces several obstacles to continued progress, particularly from tariffs issued by the Trump Administration.
Short-term economic impacts
“Tariffs aren’t inherently good or bad,” said Triple-I Chief Economist and Data Scientist Dr. Michel Léonard, who co-moderated the discussion. “Where there is consensus among economists is that, in the short term, tariffs do lead to inflation and disruption.”
Put simply, tariffs can raise revenue for the issuing government while costing the domestic businesses that rely on imported goods. In advance of pending tariffs, companies up and down the supply chain are purchasing such goods at a record pace, which boosts the demand and prices of these materials. Consumers will inevitably shoulder some or all of the added cost.
Many proposed or enacted tariffs involve materials essential to construction and auto manufacturing. Earlier this month, for instance, the administration doubled its new steel and aluminum tariff to 50 percent – including on Canada, the largest steel supplier to the United States. P/C replacement costs will likely rise throughout the industry, leading to higher claim payouts and, consequently, premium rates.
Amid various tariff reductions, increases, impositions, and pauses, President Trump’s trade policies remain difficult to determine or predict. This lingering ambiguity – paired with impending replacement cost increases – creates a “double whammy” for insurers, said Aaron Klein, Miriam K. Carliner Chair and senior fellow in Economic Studies at the Brookings Institution.
“Other markets can adapt to that more quickly,” Klein said. “When I renew my auto policy in February, the insurer on the other side has to guess what the costs are going to be over six months.”
While in a period of extraordinary performance, the workers compensation line also faces potential risks from oncoming tariffs, noted Donna Glenn, chief actuary at the National Council on Compensation Insurance (NCCI). Mitigated by investments in technology and safety, workplace incidents could rise, she explained, as “a lot of the uncertainty puts businesses back in a defensive mode and asking, ‘how should I spend my money?’”
“I caution and say there will be some temporary lack of investment in safety,” Glenn continued.
Talent and technology
An evolving workforce poses additional risks.
“Workers comp has benefited from a very strong labor market,” Glenn said, pointing to consistently low U.S. unemployment rates, but current mass deportation efforts could undermine this trend. “We are accustomed to having a significant influx of foreign-born workers,” Glenn explained. “When we don’t – and when we shift to not having them – the labor market could stifle to some degree.”
Bridging the talent gap lends further urgency to this issue, as roughly 400,000 workers are projected to leave the insurance industry through attrition by 2026 in the U.S. alone, according to the U.S. Bureau of Labor Statistics. And with generative AI automating more processes across the insurance value chain, cultivating a workforce possessing the necessary skillset to oversee them compounds the problem.
“AI can certainly help improve productivity,” said Triple-I Chief Insurance Officer and co-moderator Dale Porfilio, “but we’re going to need people to do an awful lot of those jobs. We’re still going to have that talent gap.”
Embracing advanced technology, then, gives insurers an opportunity to both develop that expertise and rebuild the workforce by attracting younger tech professionals who might otherwise overlook the industry. Innovative companies like Argo Group are already paving the way for this collaboration.
Patrick Schmid, president of The Institutes’ RiskStream Collaborative, acknowledged that “getting clarity about how significantly you can leverage AI is very important.”
Concern about using AI in underwriting, Schmid said, given an absence of AI regulatory guidance, which does not exist federally and is set to be blocked on a state level.
To provide insight into these efficiencies, Schmid described how RiskStream – a consortium of insurers, brokers, reinsurers, and other industry leaders – applies AI to streamline data processing, lower operating costs, and enhance customer experiences. Beyond expediting business operations, AI offers potential solutions to a range of challenges plaguing insurers, Schmid said – including one application that might help mitigate legal system abuse by facilitating earlier claims intervention, preventing excessive attorney involvement.
The panelists agreed that insurers will continue to adapt their underwriting and pricing to reflect this dynamic environment and emphasized the economy’s strong, steady recovery post-COVID.
“There’s not been a single case of an economic expansion in recorded history dying of old age,” Klein said. “Are we near the tipping point? I don’t think so.”
A certificate of insurance is a written document that provides proof of insurance coverage, summarizing key details such as the type of policy, coverage limits, policyholder name, effective dates, and the insurer’s contact information. It is commonly used in business contracts to show that a party has the required insurance in place, such as general liability or workers’ compensation. Understanding how to read a certificate of insurance is essential for verifying that the coverage meets contractual requirements.
If you’re an experienced business person, certificates of insurance are probably not new to you. You’ve likely requested and read one many times before. But can you read a certificate of insurance from top to bottom and be sure that you understand everything there?
On the other hand, if you are a new startup or small business owner, you possibly haven’t even had the chance to come across, let alone read, a certificate of insurance. They could be a true mystery for you then. So, let’s first explain briefly what a certificate of insurance is.
Simply put, a certificate of insurance (COI) is proof of having insurance coverage. It is a document that summarizes your insurance policies and provides the necessary coverage details when your clients or vendors, for example, request that from you.
The certificate of insurance is valid for as long as your policy is active. Once your policy expires, your certificate can only be used to prove that you had insurance coverage at a given period, but it doesn’t help with future projects.
You can obtain a certificate for any type of insurance policy you have in place with your insurer(s). The most common types of certificates insureds request are the certificate of liability insurance and property insurance certificate.
Commercial property insurance certificate provides details of the commercial property insurance policy, outlining coverage information and insured perils. Banks usually request this type of certificate from their clients because they hold the mortgage over the property when giving out loans.
In What Situations Do Businesses Need a COI?
Whenever you are starting a new project or a partnership, you should ensure that the new parties you work with provide adequate insurance policy certificates. You don’t want to be responsible for the claims related to their work and suffer financial losses in the process.
Also, you shouldn’t be surprised when the same is asked of you. Providing a COI to your partners proves that you run a financially responsible business that is fully insured and poses no legal liability to them. If you are a startup looking to raise funding, you can expect investors to ask for your certificate of directors and officers liability insurance.
A certificate of insurance provides security to all the parties listed in the contract and involved in the project. If you rent some equipment, lease new office space, or add a new supplier to your product chain, all involved parties will likely need to provide proof of insurance.
If you plan to renovate your offices or any other facilities you own and want to hire contractors to do that job for you, ask them for their certificate of insurance. Mistakes and accidents happen, and you don’t want to be liable unless you are responsible for them.
You also have the option of adding an “additional insured” to your liability policy when you start working with them. You add the additional insured to your coverage by including an endorsement that lists them as added insured to your current policy. Note, however, that this depends on your primary policy and the terms you have agreed with your insurer, and you might have to pay an additional fee.
What Are the Main Elements of a COI?
The good thing about COIs is that there are standardized forms that most insurance carriers, brokers, and agents use to provide proof of insurance to their clients. Those forms are called ACORD certificates, named after the nonprofit organization that developed them, The Association for Cooperative Operations Research and Development (ACORD).
Assembling hundreds of insurance companies from across the globe under one organizational umbrella, ACORD (the Association for Cooperative Operations Research and Development) has evolved into one of the most influential standards-setting bodies in the insurance and related financial services industries. Over the past 50 years, ACORD has played a central role in shaping how insurance companies communicate, exchange information, and streamline their operations.
Originally established to address inefficiencies in data sharing among insurers, agents, and brokers, ACORD has developed a vast array of standardized forms, data models, and electronic protocols that have become foundational to the industry’s modern infrastructure. These standards cover everything from property and casualty insurance to life, annuities, and reinsurance, ensuring that data can move seamlessly between systems, organizations, and jurisdictions, regardless of the technology platforms in use.
ACORD forms—such as certificates of insurance, applications, and claims documents—are now widely recognized and used throughout the global insurance marketplace, enabling faster transactions, reducing errors, and supporting regulatory compliance. Moreover, ACORD’s data standards support digital transformation by facilitating automation, improving interoperability, and laying the groundwork for advanced analytics and emerging technologies like artificial intelligence and blockchain. As the insurance industry faces increasing pressure to modernize, reduce costs, and meet rising customer expectations, ACORD’s role has become more vital than ever.
By fostering collaboration among carriers, technology providers, and industry stakeholders, ACORD continues to drive innovation and operational efficiency. In doing so, it helps create a more responsive, transparent, and connected insurance ecosystem that can adapt to future demands while maintaining the integrity and trust that underpin the industry. Through its decades of work, ACORD has not only improved the way insurers do business but also strengthened the infrastructure that supports risk management and financial security worldwide. Assembling hundreds of insurance companies worldwide under its roof, ACORD is now a standards-forming body for insurance services.
The most commonly used ACORD certificates are ACORD 25 and ACORD 27 and 28. Insurers use ACORD 25 for proof of liability insurance and ACORD 27 or 28 to provide evidence of property insurance.
We will use the example of an ACORD 25 certificate form to explain the main elements of a COI. Other certificates they created are similar since they all follow the pattern that ACORD provides. Let’s look at the sections all ACORD 25 certificates have:
Date: This is merely the certificate issuance date.
Disclaimer: The statement indicating that this document is proof of insurance but doesn’t in any way amend, extend, or alter the agreed coverage(s) named in the certificate.
Producer: The name of the insurer, agent, or broker who handled the insurance purchase and issued the certificate to the insured. The field should include the name and the business address.
Insured: This field refers to the policyholder. It should state the name of the individual or business entity holding the policy and their business address, just like the previous field.
Insurer(s) affording coverage: This section lists the names and NAIC numbers of insurance carriers providing the listed coverages to the insured. If there are multiple insurers, their names should stand in separate lines, as Insurer A, Insurer B, and so on.
Type of insurance (+ Insr. ltr:): All the relevant insurance coverages are listed in this section, right next to the “Insurance letter” box. The Insurance letter indicates which carrier holds what policy, and they match the companies from the “Insurer(s) affording coverage” section. This field already contains a list of some liability policies (such as general liability or automobile) and some blank space to add additional policies for which the policyholder needs proof of possessing.
Policy EFF: The policy effective date is when the named coverage begins.
Policy EXP: The policy expiration date shows when the coverage ends under the named policy.
Policy limits: Lists the limits of each specific coverage within the policy.
Description of operations/locations/vehicles: The producers can use this field to add any properties or entities included on any of the policies as additional insured(s). This space is also for any existing waivers of subrogation.
Certificate holder: The name of the person/business who requested the certificate.
Cancellation: The notice stating that the producer will notify the certificate holder if either party cancels the policy before its expiration date.
Authorized representative: The place for the signature of the authorized agent or broker.
Additional remarks page: If the space left in field 10 was insufficient to include all additional insureds, properties, or waivers, the producer should add all the necessary information here.
How to Read a Certificate of Insurance Form?
Most of these fields are self-explanatory and contain all the necessary information for the certificate holder. However, there are a few things you should look into when reading a COI. Suppose that you are looking at an ACORD 25 certificate provided by a business partner right now. Here’s what you should pay attention to:
Does the business name of the insured match the name of the partner/vendor with whom you are starting the business relationship?
Does the policy expire before the date you expect to complete your cooperation? Ask for the timely new certificate upon the policy renewal if it does.
Does the certificate list all the necessary coverages?
Are the limits to the listed policies adequate? If not, you should ask the other party to increase their policy limits to match or exceed your own.
If everything seems to be in order, you are good to go. However, you should be aware that a COI can be counterfeit. The best way to prevent getting one of these is to be careful when choosing your contractors, vendors, and business partners. Make sure they are reliable and potentially recommended by someone from your business network.
Should you have any reason to suspect a COI you received is fake, a few things could help you determine that.
First, as we said before, almost all insurance brokers and carriers use standardized ACORD forms. Check for the recognizable logo in the upper left corner; if it’s not there, that could mean the certificate is not genuine.
You can also search the Internet to check if the producer’s information is correct. Extend the search to their website to check if they offer the insurance lines listed in the certificate. Also, the document shouldn’t be editable because it would indicate that it could have been tampered with before it reached you.
Another sign could be weird formatting. If you notice some strange zeros, different fonts, or inconsistent capitalization, that could be a reason to suspect foul play.
In case you still have suspicions about the document’s authenticity, you can even ask the carrier directly to send you the insured’s proof of insurance.
How to Obtain a Certificate of Insurance?
Traditionally, this process involved going back and forth between you, your broker, and your carrier, potentially printing the documents and ensuring they reached your partners. Had there been some irregularities, the certificate would have to go back to you and then to your broker to start the process again from the beginning.
Luckily, things have changed over the years, and obtaining a COI has become significantly easier. The process has become even more streamlined with the expansion of insurtechs, which are slowly but steadily modernizing the traditional insurance industry. The process for requesting a COI from your broker is now digitized and considerably more efficient than it used to be.
If you have the policy with Embroker, you can get your certificate of insurance online instantly. Simply log into your Embroker account, choose which policy you’d like a certificate for, and get started. Your business partner will receive the certificate immediately. You can also download a copy of your certificate from your Emrboker account.
If you need a customized certificate, you can also request it in your account, and it will be ready for you within 24 hours.
In today’s competitive landscape, the lines between product and price offerings among Asian insurers are blurring, compelling companies to find innovative ways to capture customer attention and secure their business. As a result, customer engagement and experience have become paramount to success. Despite insurers’ efforts to prioritize customer-centric approaches and personalized experiences, a staggering 74% of consumers have abandoned purchases due to feeling overwhelmed, according to “The Empowered Consumer”, Accenture’s global consumer research 2024. Moreover, consumer trust and loyalty remain alarmingly low, with just 39% of consumers believing that companies have their best interests at heart.
Why is this happening? Based on recent studies carried out by Accenture, both globally and in the Chinese market, we have summarized some key findings.
Information overload: Consumers often encounter excessive information, leading to frustration as they struggle to filter and validate the information. 62% of consumers feel overwhelmed by the abundance of options available to them.
Crowded market: In Reinvent Relevance in the Age of Overload, we found that nearly 80% of Chief Marketing Officers (CMOs) across industries in China note that product offerings and marketing strategies have become homogenized. While more options exist, this has created confusion and decision paralysis among consumers.
Evolving customer expectations: Consumers are increasingly focused on buying brands rather than just buying products, and a positive brand experience is particularly important for insurance as purchasing decisions are less frequent compared to other consumer goods. To succeed in this complex environment, insurers must reinvent customer relationships – through adapting, innovating, and leveraging technology.
Taking these into account, this blog focuses on three levers to foster and maintain profitable growth, by enhancing customer engagement and experience:
1. Drive data-driven marketing with AI:
Advancements in data analytics and artificial intelligence have made hyper-personalization more accessible, guiding customers through their decision-making journey. 94% of Chinese CMOs believe that Gen AI capabilities can help enhance organization efficiency and agility in response to market demands.
The integration of AI tools enables marketing campaigns to focus on relevant topics and upcoming plays, generating marketing messages to stay top of mind. It also enables agents with tailored recommendations and advanced insights based on customer interests, engagement history and lifestyle factors.
We see insurers differentiating themselves by developing AI capabilities that match products to customers based on a variety of data factors, providing recommendations based on the degree of alignment between the products and the customers’ needs. Demand for usage and behavior-based products and services continues since the covid-era spike in 2020.
While data is the cornerstone of AI capabilities, many organizations struggle, with 65% facing challenges in building end-to-end data foundation. They often lack clarity on which data is relevant and are uncertain where to begin. As insurers navigate this complex landscape, prioritizing data organization and fostering collaboration between technology and human insight could unlock the transformative potential of AI.
2. Embrace marketing technology to drive innovation and speed
68% of Chinese CMOs feel that customer expectations are evolving faster than their companies can keep up. Being able to respond quickly to these demands is crucial for success. To bridge this gap, insurers need to harness Marketing Technology (Martech) to gain valuable insights into customer preferences, enabling quicker responses through automated campaign workflows and more targeted marketing. This means delivering campaigns at the right time and in the right format, tailored to each customer’s unique preferences.
To further enhance their marketing strategies, insurers should consider integrating Martech into their core and data platforms. This integration can create a more seamless journey from campaign planning, execution to tracking, allowing marketing resources to focus on their primary task – driving creative innovation – rather than getting bogged down in administrative work. We have collaborated with a leading financial institution in Hong Kongto elevate its Martech capabilities and improve its marketing operations. They have launched a new strategy focused on engaging customers through targeted marketing campaigns, utilizing insights from customer segmentation, product analysis, analytics, and various media channels. This comprehensive approach resulted in impressive outcomes: a 65% increase in new business, a 10% boost in reactivating existing customers, and a 25% improvement in marketing operations efficiency.
While tailoring marketing strategies based on customers’ behaviors and preferences, Martech should also enable omni-channel capabilities across multiple touchpoints. Ensuring consistent messaging and seamless transitions between channels helps insurers engage with customers effectively and bring a cohesive brand experience.
3. Foster meaningful interactions and build a customer-centric ecosystem
When products and services among companies have become highly homogenous, customers assess them not only based on the transactional relationship, but more importantly, the broader experience they have with the brand. They seek distinctive and memorable interactions that may not directly relate to the product they are buying. 76% of shoppers who find joy in shopping are likely to recommend a brand to others, highlighting how positive and engaging experiences greatly influence brand advocacy and customer loyalty. This emphasis on unique experiences is particularly crucial for the insurance industry, where purchasing decisions are less frequent compared to other consumer goods.
Insurers can either build the ecosystem internally by integrating various product lines and services, or through collaborating with external ecosystem partners to expand the expertise. In fact, few insurers are already utilizing ecosystems to bring value-added experiences and expand their customer base. This can include partnerships with organizations in health and wellness, retail, entertainment, and travel to offer unique perks and experiences for policyholders. They may also organize events such as outdoor yoga classes, running events, and outdoor movie nights to position themselves as comprehensive health and wellness partners.
For instance, one of the insurers in Hong Kong has entered into a cross-industry partnership with an online Food and Beverage guide platform to offer exclusive loyalty experience, health and wellness incentives, and become the first insurer in Hong Kong to provide protection for any accidents related to dining experience.
To truly excel, insurers must strive to provide unique and memorable experiences. While most customers may not grasp the technical disparities between products offered by different insurers, they do recognize when they encounter exceptional ‘wow’ moments. Evaluating your current standing amongst competitors and actively seeking ways to deliver distinctive experiences can help your brand leave a lasting impression on customers.
Conclusion
Standing out with unique experiences is the key to securing enduring customer relationships and leading the way in the dynamic insurance landscape. As insurers navigate this challenging terrain, their dedication to customer engagement and differentiation will be the catalyst for sustained business growth. We believe the insights we have gleaned in Asia can inspire leading insurers in other regions for their future customer engagement efforts.
Insurance Consumer Study: See the people behind the policies: Insurers need a profound understanding of the people behind the policies so they can be ready with solutions that fit each unique risk profile and create a protection ecosystem.
