REInsurePro has launched a new insurance program targeting larger apartment complexes, entering a segment that has experienced carrier withdrawals and rising premium costs in recent years.

The new offering, called REInsureProHab, is an annual property and liability insurance program designed for apartment complexes with 21 or more units. The program is available through REInsurePro’s appointed independent agents and focuses on multi-family residential properties.

According to REInsurePro, the program provides tailored underwriting and scalable protection for larger habitational risks. Seth Markum, senior vice president of specialty programs, said the launch aligns with the company’s focus on specialized real estate insurance solutions.

“The development of REInsureProHab reflects our continued commitment to delivering niche insurance solutions for agents and their investor clients, while supporting both as they grow their businesses in the real estate market,” Markum said.

The program is underwritten by a carrier with an A- rating from AM Best.

REInsureProHab includes dwelling coverage for direct physical damage caused by perils such as fire, lightning, windstorm and hail, vandalism, theft, and named windstorm events. Investor clients may choose between Basic and Special Form coverage. The program offers up to $15 million in total insured value.

The liability portion addresses claims arising from incidents at insured properties. Examples include slip-and-fall accidents and carbon monoxide leaks. Coverage also extends to amenities such as pools, clubhouses, and shared laundry facilities if they comply with applicable codes.

Liability limits begin at $1 million per occurrence and $2 million aggregate. For locations that meet underwriting requirements, limits can increase to $2 million per occurrence and $4 million aggregate.

Eligibility requirements apply to multi-family properties with 21 or more units that were built in 1980 or later. In Texas, eligible properties must generally have been built in 1990 or later. Older buildings may qualify if they underwent complete renovations, including updates to wiring and plumbing systems. Mixed-use properties with light commercial exposure may also qualify.

The program is not available in Alaska, Hawaii, or Los Angeles County. In addition, California and Colorado properties must meet wildfire scoring requirements. Florida and other Tier 1 locations remain subject to XNS coverage availability.

Optional coverage enhancements include flood insurance, terrorism and political violence coverage, ordinance or law coverage, and a Tenant Protector Plan.

The launch comes as the multi-family insurance market continues to face pricing and capacity challenges. Research released by the Federal Reserve in 2025 showed that insurance costs for multi-family properties increased from $39 per unit per month in 2019 to $68 in 2024 when adjusted for inflation.

Marsh McLennan’s “Real Estate Risk and Resilience for 2026” report stated that multi-family coverage has shifted largely into the surplus lines market, where terms have tightened, and available limits have decreased.

Meanwhile, Smart Choice’s 2026 market outlook identified social inflation and nuclear verdicts as factors contributing to higher excess-layer liability rates for habitational risks.

Industry observers have also noted underwriting distinctions based on property size. Guidance from Steadily noted that larger apartment complexes often require commercial insurance placements rather than Business Owners Policies, while Reshield reported that high-rise multi-family properties carry greater loss exposure than smaller habitational accounts.

The Baldwin Group released its Q1 2026 Market Pulse Report, highlighting growing differences across commercial insurance lines as property pricing continued to soften while casualty pressures persisted. The report marks the sharpest divergence in property and casualty pricing trends since the company launched it in Q4 2024.

Property and Workers’ Compensation Continue Softening

According to the report, commercial property pricing declined 7.1% in Q1 2026, reaching its steepest negative reading on record. The company attributed the continued softening trend to strong market capacity and increased competition among carriers. Workers’ compensation pricing also continued its gradual decline, dipping 0.9%.

Leslie Nylund, national managing director of broking and insurance company partnerships at The Baldwin Group, said market conditions are no longer moving in a single direction. She noted that as conditions continue to diverge across lines, understanding how different risks interact has become increasingly important, as decisions in one area can affect outcomes across an entire insurance program.

Casualty Lines Face Ongoing Litigation and Severity Pressures

Several casualty lines continued to face upward pressure during the quarter. General liability pricing moderated to 6.1%, down from 9.3% in Q4 2025, but the report noted that social inflation and litigation trends continued to influence the market. Commercial auto pricing also slowed slightly to 5.7%, although severity drivers such as nuclear verdicts and rising vehicle repair costs remained elevated.

Umbrella coverage pricing increased 8.2% during the quarter, reversing a three-quarter deceleration trend. The report cited continued social inflation pressure and nuclear verdicts as contributing factors.

Cyber and Management Liability Show Mixed Market Conditions

Cyber insurance pricing returned to positive territory at 1.1%, signaling early signs of firming conditions amid increased threat activity. Meanwhile, management liability conditions remained mixed. Private market pricing increased 3.3%, down from 4.8% in the previous quarter, while competition in public directors and officers liability programs continued to push pricing down 3.5%.

Baldwin Report Highlights Growing Segmentation Across Insurance Lines

The report stated that current market conditions are expected to continue throughout 2026. Property and workers’ compensation lines are expected to remain softer, while casualty lines may continue to face sustained pressure. The report also noted that underwriting segmentation has become a defining characteristic of the current market cycle, with underwriters placing greater emphasis on risk quality and documentation.

Nylund added that while the property market continues to provide pricing relief for many insureds, casualty uncertainty remains. She also said that although some areas are showing moderation through selective competition, structural underwriting concerns have not changed. According to Nylund, data and analytics remain important tools for improving renewal outcomes and increasing certainty for underwriters.

The Federal Emergency Management Agency Review Council released its final report on May 7, outlining findings from a federal review of FEMA’s mission, operations, and accountability efforts.

According to the Department of Homeland Security, the council conducted what officials described as a comprehensive review of FEMA’s capabilities, operational challenges, and opportunities for reform. President Donald Trump established the council as part of the administration’s broader examination of the agency’s disaster response role and organizational structure.

The report marks a milestone in the administration’s ongoing FEMA reform efforts. DHS Secretary Markwayne Mullin said the agency is focused on directing resources to communities and individuals affected by disasters while supporting state, tribal, and local governments during response and recovery operations.

“FEMA is not the first responder, but rather a force multiplier standing shoulder to shoulder with states, tribes, and local governments to ensure rapid and effective recovery,” Mullin said in a statement released with the report.

The secretary also stated that FEMA has undergone operational changes intended to streamline the agency and strengthen readiness capabilities. According to DHS, the administration has implemented reforms independent of the council’s work, including changes tied to fiscal transparency, fraud prevention, and operational readiness.

DHS said the reforms occurred during what it described as a cumulative lapse in department funding that lasted more than 100 days. The department stated that FEMA’s operations became “leaner” and “faster” during that period while remaining focused on supporting state, local, tribal, and territorial partners before, during, and after disasters.

The FEMA Review Council includes federal officials, emergency management leaders, and representatives from state and local governments and law enforcement agencies. DHS identified the council’s members as including Secretary Mullin, Secretary of War Pete Hegseth, and other disaster response experts from across the country.

According to DHS, the council’s mandate was to advise the president on FEMA’s ability to address disasters “capably and impartially” and to recommend changes that officials believe serve the national interest.

The administration has not yet released details regarding which recommendations from the final report may move forward or whether additional operational changes will be implemented at FEMA in response to the council’s findings.

FEMA plays a central role in coordinating federal disaster assistance and supporting recovery efforts nationwide. The agency works alongside state and local emergency management organizations during natural disasters and other federally declared emergencies.

The release of the final report comes as federal officials continue broader discussions about emergency management operations, disaster preparedness and intergovernmental coordination during response and recovery efforts.

Florida Gov. Ron DeSantis signed five additional bills into law on Wednesday, including legislation that changes building permit requirements for certain residential construction projects across the state.

The measure, CS/CS/HB 803, titled Building Permits and Inspections, includes provisions related to permitting, inspections, emergency response, and off-site residential construction. The bill received unanimous approval in both chambers of the Florida Legislature and is scheduled to take effect July 1.

Permit Exemptions for Small Residential Projects

One of the bill’s most notable provisions exempts certain small residential projects from local permitting requirements. Under the new law, local governments that issue building permits must exempt owners of single-family dwellings, or their contractors, from obtaining a building permit for work valued at less than $7,500 on the owner’s property.

According to the bill text, local governments may also not inspect work covered by the exemption. However, the legislation specifies that projects cannot be divided into smaller portions to avoid permitting thresholds.

The law still allows local governments to require permits for electrical, plumbing, mechanical, gas, or structural work, regardless of the project's appraised value.

Emergency Response and Inspection Provisions

The legislation also includes temporary workforce flexibility following emergencies. Certain out-of-state licensed building officials will be allowed to work in Florida for up to one year after a declared state of emergency.

In addition, the bill requires the Florida Department of Management Services to establish and maintain state term contracts for building code inspection services.

The measure further states that certain individuals who perform work without applicable permits or inspections are not subject to disciplinary action if otherwise authorized by law.

Regulations for Manufactured and Offsite Housing

The legislation includes several provisions related to residential manufactured buildings and offsite-constructed housing.

Under the law, the Florida Department of Business and Professional Regulation may not deny building permits for certain residential manufactured buildings.

Additionally, local governments may not adopt or enforce zoning, land use, or development regulations that treat offsite-constructed residential dwellings differently or more restrictively than comparable dwellings within the same zoning district.

The bill also requires local governments to exempt certain owners and contractors from permit requirements for temporary residential hurricane- and flood-protection walls or barriers that meet specified standards.

Another provision establishes timelines for local governments to make decisions related to certain building permits.

The News Service of Florida contributed to reporting on the legislation. Gov. DeSantis has now signed more than 60 bills into law this year, according to the report.

A federal trademark dispute between a national insurance broker and Liberty Mutual Insurance Company is now before a California court after The Liberty Company Insurance Brokers filed suit over the carrier’s registration of the word “LIBERTY” for insurance-related services.

The lawsuit, filed May 6, 2026, in the US District Court for the Central District of California, accuses Liberty Mutual of attempting to restrict the broker’s long-standing use of the term after years of coexistence between the two companies.

The Liberty Company Insurance Brokers, LLC, a Delaware-organized brokerage with offices across the United States, including Woodland Hills, California, is seeking a court declaration that its use of “Liberty” does not infringe on Liberty Mutual’s trademark rights. The brokerage also wants the court to cancel Liberty Mutual’s federal trademark registration for the standalone word “LIBERTY.”

According to the complaint, The Liberty Company has used “THE LIBERTY COMPANY” branding for nearly 40 years and has used “LIBERTY” independently in marketing materials for decades. The filing states that the brokerage has operated the domain libertycompany.com for more than 20 years and prominently features the word “LIBERTY” across its website, emails, advertisements, brochures, and videos. The company provides commercial insurance, personal insurance, employee benefits, and related business services.

The complaint also details a prior dispute between the companies. According to the filing, Liberty Mutual sent a cease-and-desist letter to the broker in 2007 regarding the use of both “Liberty Company” and Statue of Liberty imagery. The broker alleges that the dispute ended with an agreement allowing continued use of “Liberty Company” on the condition that the brokerage stop using Statue of Liberty visuals. The filing further claims Liberty Mutual referenced the same understanding again in 2016.

In addition, the broker states that it placed millions of dollars in Liberty Mutual policies over the years.

The current dispute centers on Liberty Mutual’s trademark application for the word “LIBERTY,” filed in May 2017. The application covered “insurance underwriting services for all types of insurance; insurance consultancy; insurance information services; insurance administration.”

According to the complaint, trademark examiners initially raised concerns about possible confusion with other “Liberty” trademarks already registered. The filing says Liberty Mutual responded by arguing that the insurance market already contained multiple “Liberty” marks and that insurance buyers were sophisticated enough to distinguish between providers. The trademark registration was ultimately issued on Nov. 2, 2021.

The Liberty Company’s lawsuit alleges that Liberty Mutual claimed use of the standalone “LIBERTY” mark dating back to 1997 without disclosing the broker’s earlier use of the term. The complaint characterizes that conduct as fraud on the US Patent and Trademark Office.

The broker says tensions escalated again on April 8, 2026, when Liberty Mutual’s counsel sent another cease-and-desist letter stating the carrier “will no longer tolerate The Liberty Company’s use of the term ‘Liberty’ in its tradename or trademark for use in connection with insurance and related services.”

The Liberty Company is seeking cancellation of the trademark registration, monetary damages, and declarations that it is the senior user of “LIBERTY” for insurance-related services.

The allegations have not been tested in court. Liberty Mutual has not yet filed a response, and no ruling has been issued on the claims.

Artificial intelligence continues to influence nearly every corner of the insurance industry, and recent InsurTech investment trends suggest that momentum is only increasing. According to Gallagher Re’s Global InsurTech Report for Q1 2026, AI-focused companies dominated funding activity during the first quarter of the year, while conversations around AI liability insurance and cyber risk management gained additional traction.

The report highlights how the insurance sector is beginning to view AI liability as an extension of broader digital and cyber exposures. As businesses rely more heavily on automated systems, machine learning models, and AI-enabled decision-making, insurers and InsurTech innovators are exploring how traditional cyber coverage and emerging AI liability products may work together to address evolving risks.

AI Liability Insurance Gains Attention

AI liability insurance is emerging as a growing area of interest as organizations increasingly delegate operational tasks and decision-making processes to AI-driven technologies. From automated underwriting tools to generative AI platforms and predictive analytics systems, businesses are becoming more dependent on digital infrastructure that can introduce new forms of liability exposure.

Potential concerns tied to AI systems may include:

• Algorithmic errors or inaccurate outputs
• Data privacy and cybersecurity incidents
• Regulatory compliance challenges
• Intellectual property disputes
• Operational disruptions caused by automated systems

As these exposures become more common, insurers are evaluating how existing cyber policies may respond and whether standalone AI liability solutions could fill emerging coverage gaps.

The report suggests that AI liability insurance is not developing in isolation. Instead, it is becoming increasingly connected to cyber insurance, particularly as both lines focus on risks associated with digital dependency and technology infrastructure.

Cyber Insurance Continues To Evolve

Cyber insurance has already undergone significant changes over the past decade as ransomware attacks, data breaches, and digital business interruptions became more frequent and severe. The addition of AI-related exposures introduces another layer of complexity.

Insurers may need to consider questions such as:

• How should AI-generated errors be classified within existing policies?
• When does an AI malfunction become a cyber event?
• How can underwriting models adapt to rapidly changing technology risks?
• What role will risk management and governance play in AI-related coverage decisions?

As AI adoption expands across industries, insurers and brokers may see increased demand for guidance surrounding policy language, exclusions, aggregation risk, and emerging liability scenarios.

InsurTech Investment Remains Strong

Beyond the discussion around AI liability, Gallagher Re’s report also points to continued resilience within the InsurTech investment market.

Global InsurTech funding reached approximately $1.63 billion during Q1 2026, maintaining momentum established in late 2025. According to the report, both Q4 2025 and Q1 2026 represented the strongest funding periods since late 2022, signaling renewed investor confidence in the sector.

One of the most notable findings involved the concentration of investment activity around AI-focused companies:

• Approximately 95% of Q1 funding went to AI-focused organizations
• Companies connected to AI liability and cyber insurance raised more than $440 million during the quarter
• Average deal sizes increased by more than 23% quarter-over-quarter
• Early-stage funding activity also accelerated, including another InsurTech mega-round exceeding $100 million

These trends indicate that investors continue to prioritize technologies designed to improve efficiency, automate workflows, enhance risk analysis, and support digital risk management.

What This Means for the Insurance Industry

The growing overlap between AI liability and cyber insurance reflects broader shifts occurring throughout the insurance marketplace. Technology-related risks are becoming more interconnected, and insurance products may continue evolving to address exposures tied to automation, digital infrastructure, and AI-enabled business operations.

For insurance professionals, this development may create opportunities to:

• Reevaluate cyber insurance offerings and exclusions
• Monitor regulatory developments involving AI governance
• Educate clients about emerging technology-related risks
• Explore new underwriting approaches for AI-driven exposures
• Assess how risk management practices influence insurability

While AI liability insurance remains an emerging segment, investment trends suggest the market expects continued growth and innovation in this area.

As InsurTech investment continues flowing toward AI-focused solutions, the insurance industry will likely continue balancing innovation opportunities with the need to address increasingly complex digital risks.

Meteorologists are closely monitoring the development of a potential “super El Niño” later this year, and some forecasts suggest it could become one of the strongest on record. According to a recent report from The Weather Channel, warming ocean temperatures in the equatorial Pacific are increasing the likelihood of a major El Niño event developing by late 2026.

El Niño is a climate pattern that occurs when sea surface temperatures in the central and eastern Pacific Ocean become warmer than average for an extended period. A “super El Niño” refers to especially intense warming — typically when temperatures rise at least 2 degrees Celsius above normal.

These stronger events are relatively rare. Since 1950, only a handful of super El Niño events have been recorded, including the well-known 1997-98 and 2015-16 events.

Wetter Conditions in Some Areas, Drier Conditions in Others

While every El Niño event behaves differently, stronger systems often produce noticeable shifts in weather patterns across the globe.

The Weather Channel reports that wetter winter conditions are commonly seen across parts of the southern United States, including California, the Southwest, and the Gulf Coast during strong El Niño years. Increased rainfall can raise the risk of flooding, mudslides, and severe storms in some regions.

Meanwhile, northern parts of the U.S. often experience milder and drier winter conditions during El Niño events.

Globally, El Niño can also influence rainfall patterns in regions such as Africa, South America, Australia, and Southeast Asia. Some areas may experience heavier rain and flooding, while others could face drought conditions.

Hurricane Seasons Could Shift

El Niño may also affect tropical storm activity.

According to The Weather Channel, stronger El Niño conditions typically increase wind shear across parts of the Atlantic Ocean, which can make it harder for hurricanes to form and strengthen. As a result, Atlantic hurricane seasons are often quieter during strong El Niño years.

At the same time, hurricane activity in the eastern and central Pacific Ocean often becomes more active.

Rising Global Temperatures Remain a Concern

One of the most closely watched effects of a super El Niño is its impact on global temperatures. The Weather Channel notes that these events often contribute to significant temperature spikes worldwide as additional heat from the Pacific Ocean is released into the atmosphere.

The previous super El Niño in 2015-16 coincided with record global warmth, and experts suggest another strong event could contribute to additional temperature records in the coming years.

As scientists continue monitoring ocean and atmospheric conditions, forecasts may evolve. Still, growing confidence in a potential super El Niño means weather experts around the world will be watching closely in the months ahead.

Global reinsurance dedicated capital reached a record $648 billion at full-year 2025, an 11% increase from 2024, according to Gallagher Re's May 2026 Reinsurance Market Report.

The growth marks the second-strongest year for capital expansion in more than a decade, driven primarily by retained earnings and strong inflows into non-life alternative capital. Capital growth significantly outpaced revenue growth, which came in at just 1.4% for the year.

Traditional reinsurance capital rose 10% to $513 billion, accounting for roughly two-thirds of the overall increase. Retained earnings were the single largest contributor to reinsurance groups, accounting for nearly 50% of their capital increase. Non-life alternative capital grew 18% to $135 billion, its largest annual increase since Gallagher Re began tracking the metric. Inflows supported not only property catastrophe risk but also casualty lines.

The Gallagher Reinsurance Composite, which includes large Bermudian and Big Four European reinsurers, reported a 19.3% return on equity for 2025, up from 16.7% in 2024. Across the broader reinsurance groups universe, ROE reached 18.3%, the best result since the report's launch in 2014. The strong headline numbers were supported by below-normalized natural catastrophe losses, which provided a 1.6 percentage point benefit, as well as higher prior-year reserve releases and realized capital gains.

On the whole, however, the picture was more mixed. The Composite's underlying ROE, which strips out catastrophe normalization, reserve development, and investment gains, declined to 13.5% from 14.5% in 2024. That deterioration reflected a higher underlying combined ratio of 94.7%, up 1.7 percentage points, partly attributable to softer market rates.

The reported combined ratio for the Composite improved to a record low of 82.5%, while reinsurance groups overall posted an 84.3% combined ratio, also the lowest since 2014.

Revenue growth slowed sharply. The Composite reported just 1.2% revenue growth in 2025, down from 9.7% in 2024, as property and specialty lines softened. Casualty rates remained broadly flat. Several larger companies, including Munich Re, Swiss Re, and SCOR, pulled back from or trimmed U.S. casualty portfolios, while smaller Bermuda-based reinsurers actively deployed capital into casualty and specialty lines.

Natural catastrophe losses totaled at least $129 billion globally in 2025, below the 10-year average of $136 billion. The California and Los Angeles wildfires drove 32% of global insured losses, while severe convective storms accounted for approximately 47%. The U.S. accounted for 77% of global catastrophe losses.

Capital return to shareholders also increased. Total payouts, including dividends and buybacks, equaled 51% of net earnings, up from 46% in 2024. Share buybacks doubled as a percentage of total capital returned, reaching 45%.

Looking ahead, Gallagher Re estimates traditional reinsurance capital will grow approximately 4% in 2026. The firm projects the Composite will deliver a 14% to 15% ROE for the full year, assuming normalized catastrophe losses and investment contributions in line with historical averages.