USG Insurance Services, Inc., a prominent national wholesaler, and MGA is pleased to announce the addition of Autumn Ledbetter to their esteemed Brokerage Division. Ledbetter joins the team as a Broker under the guidance of Mitchel Zelman, National Director of the Brokerage Division. Ledbetter’s impressive career includes her most recent role as an Inside Broker at Risk Placement Services, where she exceeded new business revenue goals by 100% and managed a book of business exceeding $1 million. Her extensive background also includes underwriting, data analysis, risk assessment, and client relationship management. She has developed a strong ability to collaborate across departments, streamline communication, and craft innovative solutions for complex risks. Ledbetter specializes in challenging placements, particularly within the habitational, manufacturing, and LRO sectors. Her technical expertise in E&S insurance and underwriting principles, combined with a keen ability to analyze risk and negotiate placements, makes her a valuable asset to USG’s growing brokerage team. This move is the most recent change that USG has implemented in its plan to continue expanding its operations nationally as a leading wholesaler brokerage firm. ABOUT USG USG is a national wholesale broker and managing general agent (MGA) with offices throughout the country. It represents 300+ A-rated carriers, both admitted and non-admitted, and is an MGA for multiple top carriers, writing business in all states. USG's mission is to become the #1 provider of innovative solutions for the risk management industry, exceeding expectations with its advanced technology, creative problem-solving, and research capabilities.

The year 2024 will be remembered as one of the most tornado-active years in U.S. history. With 1,796 confirmed tornadoes across the country, this year ranks as the second-highest for tornado activity since official records began in 1950. Only 2004 saw more, with 1,817 tornadoes.

A Year Marked by Relentless Severe Weather

Tornadoes are not uncommon in the U.S., but 2024 stood out for the frequency and intensity of its storms. Spring delivered a concentrated burst of severe weather, with outbreaks spanning late April through May. By the end of May alone, 1,032 tornadoes had already touched down — the second-most ever recorded for the first five months of any year, trailing only the infamous 2011 season.

As the year continued, extreme weather didn’t let up. A major outbreak on December 28 brought nearly 100 tornadoes in a single day, capping off 2024 with a dramatic finale.

Tornadoes Fueled by Hurricanes

A key factor in 2024’s severe weather was an exceptionally active tropical cyclone season. Tornadoes spun off from several hurricanes, most notably Beryl, Debby, Helene, and Milton. In total, 185 tornadoes were linked to tropical systems — the third-highest tropical tornado count on record.

While most of these tornadoes were rated EF-0 or EF-1, six were EF-3. This is a remarkable statistic considering that only five EF-3 tropical cyclone tornadoes were recorded in the entire 29-year period from 1995 to 2023. Hurricane Milton alone accounted for three of the six EF-3 storms in 2024.

Record-Breaking Tornado Counts in Six States

The extraordinary activity in 2024 resulted in new annual tornado records for six states:

• Illinois: 142 tornadoes (previous record: 125 in 2006)
• Iowa: 125 tornadoes (previous record: 120 in 2004)
• New York: 32 tornadoes (previous record: 25 in 1992)
• Ohio: 74 tornadoes (previous record: 61 in 1992)
• Oklahoma: 152 tornadoes (previous record: 148 in 2019)
• West Virginia: 20 tornadoes (previous record: 14 in 1998)

Lives Lost, but Fatalities Remain Below Average

Despite the alarming number of tornadoes, the nation experienced 54 direct tornado-related fatalities in 2024 — well below the 20-year average of 78 deaths. However, a sobering detail emerged: more than half of these deaths occurred in manufactured or mobile homes, underscoring the importance of proper shelter and preparedness.

Looking Back — And Ahead

The 2024 tornado season offered a stark reminder of nature's unpredictability and power. From spring supercells to hurricanes fueling late-summer storms, it was a year that tested the nation’s resilience. The data from NOAA's Storm Prediction Center will be critical in helping meteorologists, emergency managers, and policymakers prepare for the future — a future where proactive planning and public awareness remain more vital than ever.

For more insights, you can explore the full 2024 SPC Year-In-Review via NOAA’s Storm Prediction Center.

The Insurance Industry Charitable Foundation (IICF), a unique nonprofit organization dedicated to helping communities and enriching lives, celebrated $622,000 in IICF Community Grants awarded across the region to 67 nonprofit partners at its 10th annual IICF Western Division Horizon Award Gala at the Skirball Cultural Center in Los Angeles last week. The event gathered insurance leaders from the Western states, along with representatives of nonprofit partners, in celebration of the industry’s legacy of collaboration and giving by raising funds for nonprofit organizations. As part of the celebration, Stephen M. Wilder, Senior Vice President, Risk Management at The Walt Disney Company, was honored with IICF’s Golden Horizon Award. This prestigious award recognizes those within the insurance community who have demonstrated philanthropic excellence and leadership. IICF is proud to honor Steve Wilder for his distinguished career, efforts to advance the industry, and strengthen our community through his philanthropic leadership. Proceeds from the 2025 Western Division Horizon Award Gala benefit the IICF Community Grants Program in the West, which supports regional charities focused on children at risk, education and human services. Since 2014, IICF’s Western Division has granted more than $5.5 million to hundreds of nonprofits. IICF proudly contributes geographically broad community leadership, grants and volunteer service through the IICF Western Division Board of Directors, Northern and Southern California Associate Boards, Chapter Boards in Arizona, the Mountain States and Pacific Northwest, and regional steering committees in San Diego and California’s Central Valley. In addition, the IICF Insuring the Children steering committee focuses on child abuse prevention through educational programming, fundraising events and volunteer support. “IICF unites the insurance industry in a unique and powerful way, and in the Western Division we are successfully bringing together leaders across many states - at special events like the Horizon Award Gala and so many others – all to make a positive and lasting impact in our communities,” said Nathan Carter, Broker & Market Leader – Southwest at AIG and Event Co-Chair of the 2025 Horizon Award Gala. Marc Hickman, West Region Leader, EVP at Aon and Horizon Award Gala Event Co-Chair, added, “We are excited to have hosted yet another Horizon Gala that achieved record fundraising. This success translates directly to greater grant awards into our communities and ultimately, helping more neighbors in need.” “We were thrilled to host hundreds of insurance leaders in the West and celebrate our support of 60+ nonprofit partners through IICF Community Grants funded by their generous contributions,” said Melissa-Anne Duncan, Executive Director of the IICF Western Division. “This year we have an exciting slate of events planned, each providing valuable community support. We kicked off 2025 by proudly welcoming a new IICF Western Division Board Chair, Travis Bethune, and with our philanthropic focus across multiple states, we are advancing the IICF mission of helping communities and enriching lives across Arizona, California, Colorado, Oregon, Utah and Washington through the commitment of insurance leaders serving in IICF’s Western Division.” Travis Bethune, Senior Vice President, Customer and Broker Engagement at Berkshire Hathaway Specialty Insurance, was appointed Chair of the IICF Western Division Board of Directors in January, succeeding Nancy Thomas of HUB International. The 2025 Horizon Award Gala was made possible by leading sponsors including:

• Platinum Sponsors: Aon, Chubb and Liberty Mutual Insurance
• Gold Sponsors: Alliant, Allianz, Astrus, Berkshire Hathaway Specialty Insurance, Brown & Riding, CNA, Confie, London Fischer LLP, Marsh, RT Specialty, WTW and Zurich
• Silver Sponsors: AIG, AXA, Arch, Beazley, FM Global, Gallagher, Intact, Lockton, The Surplus Line Association of California and UK P&I and all generous event sponsors.

For more information regarding IICF’s Western Division and to donate, please visit the IICF website or contact Melissa-Anne Duncan at (714) 870-1084 or maduncan@iicf.org. About the Insurance Industry Charitable Foundation (IICF) The Insurance Industry Charitable Foundation (IICF) is a unique nonprofit that unites the collective strengths of the insurance industry to help communities and enrich lives through grants, volunteer service and leadership. Established in 1994, IICF has served as the philanthropic voice and foundation of the insurance industry for more than thirty years, contributing $50 million in community grants along with over 355,000 volunteer hours by more than 130,000 industry professionals. IICF reinvests locally where funds are raised, serving hundreds of charities and nonprofit organizations, for maximum community impact. IICF is a registered nonprofit organization under section 501(c)(3) of the IRS code. Learn more at www.iicf.org or follow us on social media at: LinkedIn and Instagram

The National Federation of Independent Business (NFIB) Small Business Optimism Index declined for the third consecutive month in March, landing at 97.4 — just below its 51-year average of 98. Business owners’ outlook on the economy continued to dim, with the net percent expecting improvement over the next six months falling 16 points to 21%. While still significantly better than the -36% recorded a year ago, this marks the steepest monthly drop since December 2020. As in previous months, labor quality and taxes remained the most frequently cited challenges facing small businesses.

Following are some key takeaways from the March 2025 NFIB Small Business Economic Trends Report:

Optimism Declines Sharply

The Small Business Optimism Index fell 3.3 points to 97.4, its lowest point since June 2022 and below the long-term average of 98. The decline, primarily driven by worsening sales expectations and business conditions, underscores growing uncertainty amid fluctuating economic signals.

Hiring Plans and Labor Struggles

Hiring remains a challenge: 40% of owners report unfilled job openings, with the construction and transportation sectors facing acute shortages. Hiring plans have softened, and 19% of owners still rank labor quality as their top business problem, followed closely by taxes (18%).

Wage Pressures and Profit Squeeze

A net 38% of small businesses raised compensation, highlighting efforts to retain talent, but also placing strain on profit margins. Reports of declining profits increased, with 35% citing weaker sales and 11% pointing to rising material costs.

Sales Sluggish, Inventory Low

Sales remain in recession territory, with a net -11% reporting higher nominal sales and expectations for future sales falling for the third month straight. Inventory replenishment is weak, reflecting tepid demand and concerns about overstocking.

Inflation and Price Adjustments

Inflation is cooling but still persistent. A net 26% of owners raised prices in March—well below pandemic highs but above historical norms. Price increases were most common in finance, retail, and construction.

Credit Access Tightens

Access to capital has become more difficult: a net 6% of owners said their most recent loan was harder to obtain, the steepest increase since late 2023. Loan interest rates are rising modestly, averaging 8.9%, and 28% of businesses reported regular borrowing, up from previous months.

Outlook and Expansion Dampen

Only 9% of owners consider it a good time to expand—an indication of persistent caution. The net percentage expecting better conditions dropped a steep 16 points, signaling a pessimistic turn as political and economic uncertainties mount.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

Transatlantic Underwriters (TAU), a leader in specialty insurance for the transportation industry, announces the launch of a new Property and Casualty (P&C) division to expand service offerings while maintaining a strong commitment to transportation clients. The strategic expansion introduces six new lines of business: Commercial General & Excess Liability, Commercial Property, Inland Marine, Builders Risk, and Garage. This move represents a significant evolution for TAU, which began as a three-person operation in 1989 and has grown significantly in recent years, with continued growth on the horizon. "Since founding TAU, I've always envisioned expanding beyond our transportation specialty when the timing was right," said Colby Waltenburg, President of Transatlantic Underwriters. "Our transportation operations are thriving, and we're now positioned to diversify our offerings to better serve existing customers and welcome new partners. This expansion strengthens our organization while maintaining our commitment to exceptional service in the transportation space." To lead this new division, TAU has appointed Bernadette Flores as Senior Vice President of Property & Casualty. Flores brings over 24 years of experience in the excess and surplus P&C sector, with particular expertise in Contractors, Garage, Habitational, and Hospitality. "I've known Colby for over 20 years and have always admired TAU's approach to specialty insurance," said Flores. "The opportunity to build a new division from the ground up is something I've aspired to accomplish during my career. I'm incredibly thankful and excited to lead this initiative, bringing TAU's reputation for excellence to these new lines of business." Flores will operate from TAU's San Francisco Bay Area office, where she began her new role in early April 2025. The company noted that website updates reflecting the new lines of business will be implemented soon, providing detailed information about the expanded offerings. Visit tau-usa.com in the coming weeks for more insight. About Transatlantic Underwriters Transatlantic Underwriters (TAU) is a specialized wholesale insurance brokerage that has been providing competitive pricing, stellar service, and coverage for unique risks since 1989. With a foundation of excellence in transportation insurance and now expanding into Property & Casualty lines, TAU combines industry expertise with personalized service to protect businesses nationwide. Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com. 

After devastating wildfires swept through the Los Angeles region — destroying more than 9,000 structures and claiming lives — many residents whose homes were spared from the flames faced a different kind of aftermath: uncertainty, frustration, and a fight for health and safety.

The Hidden Threat After the Flames

Survivors quickly realized that escaping the fire did not mean escaping its impact. The Eaton wildfire blanketed homes with ash, smoke, and possibly toxic materials such as lead, asbestos, and heavy metals. Residents worried about the long-term health risks — especially for children and vulnerable individuals. But getting insurance companies to recognize these risks — and pay for environmental testing — became a new battle.

One resident whose home sustained visible external and internal damage was initially told that contamination testing would be covered. But once testing was completed and presented, the insurance provider changed course, citing limitations in the policy. The reason? Testing would only be covered in cases of “major” damage. Like many others, this resident entered a cycle of denials, appeals, and long waiting periods — common across the impacted area.

Turning to Community and Crowdsourcing

Frustrated with inconsistent insurance responses, homeowners formed a grassroots group to collect and share environmental testing data. More than 80 homes have since been tested for contaminants like lead — and all have shown elevated levels. An interactive map now displays the results, providing a critical tool for residents to persuade insurers to approve testing or remediation.

The community-led effort has already helped some policyholders get approvals previously denied. By validating findings through collaborative data collection, these residents are working to close the coverage gap — especially for families who can’t afford to pay for testing themselves.

Lack of Clear Standards and Government Support

Despite the growing body of contamination data, government intervention has been limited. FEMA currently has no plans for broad environmental testing, and most data gathering is being led by universities or private efforts. Local agencies primarily assess outdoor contamination, leaving indoor exposure a gray area.

Urban wildfires are particularly toxic because of the high temperatures and variety of burned materials — everything from household appliances to vehicles — yet insurance carriers have not standardized protocols for indoor toxin testing. This leaves policyholders in limbo, especially when policies are written in vague or outdated terms.

Industry Response and Regulatory Pressure

The California Department of Insurance has issued guidance reminding carriers that they must thoroughly investigate smoke damage claims — including funding testing when appropriate. However, many policyholders continue to face pushback from insurers interpreting policies narrowly.

Some insurers argue that each case is unique, and coverage depends on individual property conditions and the fine print of the policy. But experts and former regulators counter that environmental testing in the aftermath of catastrophic fires should be a standard safety measure — not a discretionary one.

The state's FAIR Plan, designed as a last resort for high-risk properties, has also come under scrutiny. A 2017 revision to the plan limited smoke damage coverage to visible damage, excluding contamination only detectable through lab testing. Although state officials called that threshold too high, change has been slow and inconsistent.

Safety, Especially for Families

For many families, health concerns are urgent. Some have noticed physical symptoms such as chest discomfort or respiratory issues after visiting their homes. Pediatricians have even recommended indoor contamination testing in homes where children reside. But when insurers deny claims — even for policies that list lead and asbestos coverage — residents are often left to foot the bill or abandon their homes.

Several homeowners were eventually reimbursed for testing after citing worker safety laws or resubmitting claims with additional environmental data. However, the delays added emotional strain to an already traumatic recovery.

The Call for a Clearer Path

The mounting number of disputes highlights a critical gap in wildfire disaster response. Residents say they shouldn’t have to become environmental scientists or legal experts just to ensure their homes are safe. And as wildfires become more frequent and severe, industry experts argue that insurance companies must adapt.

There is growing consensus that standardized testing guidelines, clearer policy language, and faster resolution protocols are needed to protect public health and restore trust in the insurance system.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

The U.S. homeowners insurance market is entering a new era — one shaped by advanced technology, evolving consumer needs, and the increasing urgency of climate risk. According to a recent analysis from ResearchAndMarkets.com, the market is projected to grow from $52.89 billion in 2024 to $87.1 billion by 2030 at a CAGR of 3.25%. For insurance agents, understanding the drivers, challenges, and emerging trends in this sector is critical to meeting client expectations and remaining competitive.

Key Drivers Fueling Market Growth

Climbing Property Values and Mortgage Requirements
Higher property values mean higher stakes for homeowners, prompting greater demand for comprehensive insurance coverage. Mortgage lenders also continue to require insurance, reinforcing market penetration.

Natural Disasters and Climate-Driven Demand
As hurricanes, wildfires, and floods become more frequent and severe, homeowners are prioritizing protection. This climate-driven urgency is prompting a surge in comprehensive and specialized coverage.

Government Programs and Regulation
Programs like the National Flood Insurance Program (NFIP) and various state mandates are expanding insurance accessibility—especially in high-risk regions—through subsidies and policy requirements.

Higher Homeownership Rates
An influx of first-time homeowners, particularly among younger generations, is increasing the customer base. As these new buyers enter the market, they bring a growing awareness of the need to protect their investment and personal belongings.

Major Challenges Facing the Market

Rising Premiums and Affordability Concerns
Escalating premiums, especially in disaster-prone areas, are pricing some homeowners out of adequate coverage. Insurers must balance risk and affordability while educating clients on the value of comprehensive protection.

Limited Awareness Among New Policyholders
Many first-time buyers may not fully understand what homeowners insurance covers. This lack of clarity can lead to underinsurance or missed opportunities for customized protection.

Emerging Trends Reshaping Homeowners Insurance

Insurtech Innovations
Digital tools are transforming the way consumers buy, manage, and compare insurance. From AI-powered underwriting to user-friendly apps, insurtech is streamlining operations and creating more efficient experiences for both carriers and clients.

Personalized Coverage Options
Consumers increasingly want policies that adapt to their lifestyles and needs. Whether it's adding endorsements for valuables or accommodating renovations and solar panels, insurers are offering more modular, customizable products.

To stay ahead, insurance agents should:

• Leverage insurtech platforms: Incorporate tools that allow for faster quoting, digital claims management, and client education.
• Educate first-time buyers: Offer clear explanations of coverage options, especially in high-risk areas where standard policies may fall short.
• Promote customization: Help clients tailor their policies based on their property, assets, and geographic risk factors.

Final Thoughts

The U.S. homeowners insurance market is poised for strong growth, but it’s not without its hurdles. As climate risks rise and technology reshapes the way policies are delivered, agents must stay agile and informed. Meeting the demand for affordability, flexibility, and education will be key to long-term success in this space.

Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com. 

The European insurance industry stands on the brink of a seismic shift. Once lauded for its resilience and predictability, the sector is now contending with sweeping disruption that challenges its very foundation. In a newly released report, “Accelerating Insurance Transformation,” PwC unveils sobering insights into how insurers across Europe are grappling with the forces of change — and how few are truly prepared.

Disruption and Decline: A Wake-Up Call for Insurers

The PwC report reveals a dual crisis within the industry: unprecedented disruption and a lack of financial value creation. Between 2015 and 2024, the sector experienced a negative average economic spread of approximately 2% annually, failing to generate sustainable financial returns. At the same time, insurers face mounting pressures from:

• Rapid technological change
• Evolving customer expectations
• Growing protection gaps
• Workforce and talent shortages
• Market consolidation
• Outdated infrastructure and cultural inertia

Despite these obstacles, customers still rely on insurers for dependable protection. Balancing this expectation with the urgent need for transformation is the industry’s greatest challenge yet.

Survey Insights: Bold Goals, But Execution Lags

PwC’s market-backed survey—featuring 19 top insurers, brokers, and intermediaries across the EMEA region—uncovers a stark reality: while all respondents are pursuing business model transformation, many are uncertain they can deliver.

Key enablers cited by industry leaders include:

• Resourcing and talent (84%)
• Effective governance (84%)
• Change culture and execution discipline (68%)
• Technology enablement (53%)
• Strategic clarity and bold goals (53%)
• Leadership commitment (47%)

Yet, one in three CTOs expressed doubts about meeting transformation goals within their timelines and budgets—a red flag for stakeholders counting on timely innovation.

What’s Holding Insurers Back?

The report outlines several deeply rooted barriers to change:

• Customer engagement gaps: Most insurers still operate on transactional models, missing opportunities for continuous, personalized interactions
• Retreat from risk: Climate change has made some insurers wary of offering coverage in critical areas like property insurance, widening the coverage gap
• Tech debt: Aging IT infrastructure hampers innovation, even as digital tools offer efficiency and better user experiences
• Workforce limitations: The industry struggles to attract top talent amid competition from more agile sectors
• Strategic fragmentation: Many companies lack a cohesive transformation strategy, relying on scattered initiatives instead of systemic reform

The Road Ahead: Agility, Innovation, and Resilience

PwC’s co-authors, Kai Müller and Phillip Arendt, argue that the next three to five years are critical. The firms that successfully align near-term operational improvements with long-term strategic goals will be those that lead the industry into a more resilient future.

Insurers must take bold steps to:

• Rebuild customer trust with personalized, digital-first experiences
• Close protection gaps by expanding risk appetite in underserved areas
• Modernize tech stacks while safeguarding operational reliability
• Attract and upskill talent to drive innovation
• Commit to enterprise-wide transformation, not just incremental fixes

Download the Full Report

“Accelerating Insurance Transformation” is essential reading for anyone invested in the future of the insurance industry. It offers a sobering yet actionable roadmap for navigating the challenges ahead.

The U.S. insurance industry, already tasked with forecasting risk amid a dynamic global landscape, is now facing new challenges following the announcement of sweeping tariffs by President Donald Trump on April 3, 2025. These tariffs, which include a flat 10% tax on all imports and a 25% duty on imported automobiles and auto parts, are expected to ripple across several insurance sectors, prompting premium hikes and underwriting recalibrations.

Auto Insurance: Premiums Gear Up Amid Parts Price Surge

Auto insurers are facing rising costs as the new tariffs inflate the price of imported vehicle parts. While higher prices for foreign-made cars are one concern, the surge in repair expenses will likely hit hardest. As parts become more expensive to source, claims costs will increase, forcing carriers to rework their pricing models.

Analysts predict auto insurance premiums could rise by 6–10% by the end of 2025. Additionally, the elevated sticker price of new vehicles means higher replacement costs, pushing insurers to reconsider coverage limits and rate structures.

Homeowners Insurance: Construction Inflation Drives Up Coverage Costs

Homeowners insurance isn’t immune from the impact. Tariffs on key building materials—like timber from Canada and steel and aluminum from countries such as China, Germany, and Japan—are projected to increase the cost of both new construction and repairs.

This material cost inflation will raise the price tags on home rebuilds, leading to higher loss payouts for insurers. A home once valued at $500,000 could now cost $575,000 to rebuild, requiring increased coverage limits and, ultimately, higher premiums for policyholders.

Commercial Insurance: Economic Pressure Adds to Risk Profiles

For commercial insurance providers, the ripple effects of rising manufacturing and raw material costs spell broader exposure. Industries reliant on imports may struggle to maintain profitability, which could increase the risk of loan defaults, particularly in the public and infrastructure sectors.

Insurers covering municipalities and publicly funded projects must now reevaluate underwriting assumptions and consider new economic realities in their risk assessments.

Adapting to a Shifting Risk Landscape

To stay ahead of these changes, insurance carriers will need to stress-test their actuarial models and plan for a range of inflation-driven scenarios. Creative underwriting, agile pricing strategies, and scenario modeling will be essential tools in maintaining stability.

As trade tensions and protectionist policies reshape global commerce, the insurance sector must remain vigilant. The effects of tariffs extend well beyond retail prices and job markets—they directly influence the cost and complexity of risk itself.

Final Thoughts

The recent tariff policy marks a pivotal shift in U.S. economic strategy. While designed to support domestic manufacturing, these measures are already exerting pressure on multiple segments of the insurance market. Whether in auto, homeowners, or commercial coverage, insurers must prepare for an inflationary tide that redefines the cost of protection. Proactivity, precision, and innovation will be key to navigating the road ahead.

This blog is based on insights from Bricker Graydon LLP's article “The Impact of Tariffs on the Insurance Industry,” published on JD Supra.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

After years of rising roadway fatalities, new data from the National Highway Traffic Safety Administration (NHTSA) shows a promising shift. Traffic deaths in the United States fell by 3.8% in 2024, reaching 39,345 fatalities — the lowest number since 2020. However, while this downward trend is encouraging, the overall picture still raises concerns about road safety in America.

A Step in the Right Direction

For the first time since the height of the pandemic, the annual death toll from vehicle crashes dipped below 40,000. This marks a significant improvement from 2021, when deaths surged by 10.8%, peaking at 43,230 fatalities — the highest since 2005.

Experts attribute the earlier spike to a mix of pandemic-related factors. With fewer cars on the road during lockdowns and a perception that law enforcement was less active, some drivers engaged in riskier behavior such as speeding, distracted driving, and impaired driving.

Now, with traffic volumes returning to normal and enforcement efforts ramping up, the fatality rate has declined to 1.20 per 100 million vehicle miles traveled — the lowest since 2019. Still, it remains above the 1.13 pre-pandemic average seen from 2013 to 2019.

Vulnerable Road Users Still at Risk

While the overall fatality numbers are falling, not all categories have seen improvements. The NHTSA reports that:

• Bicyclist deaths increased by 4.4% in 2023, totaling 1,166 — the highest since tracking began in 1980

• Injuries among cyclists rose by 8.2%, reaching nearly 50,000

• Pedestrian fatalities, which hit a 40-year high in 2022 at 7,522, decreased slightly in 2023 to 7,314, but remain alarmingly high

• Total injuries from motor vehicle crashes increased by 2.5%, totaling approximately 2.2 million people

These statistics underscore a troubling reality: while fewer people are dying in traffic accidents overall, vulnerable road users — cyclists and pedestrians — continue to face increasing dangers.

How Do We Compare Globally?

Despite this recent progress, U.S. roads remain among the most dangerous in the developed world. According to NHTSA Chief Counsel Peter Simshauser, "America's traffic fatality rate remains high relative to many peer nations."

This global comparison highlights the need for sustained investment in traffic safety initiatives, including improved infrastructure, stricter enforcement of traffic laws, and more widespread public education.

Looking Ahead: Safety Strategies That Matter

To build on the momentum of 2024’s decline in traffic deaths, public and private sectors must continue to work together to:

• Implement Complete Streets policies that prioritize safe access for all users, including pedestrians and cyclists

• Invest in traffic calming measures such as speed bumps, roundabouts, and protected bike lanes

• Strengthen traffic law enforcement, particularly around distracted and impaired driving

• Promote vehicle safety technologies like automatic emergency braking and lane departure warnings

• Expand public awareness campaigns to encourage safer driving habits

Final Thoughts

The 2024 decline in U.S. traffic fatalities is a positive sign, but it's no time for complacency. Vulnerable road users continue to be disproportionately affected, and the fatality rate remains higher than pre-pandemic norms. By focusing on comprehensive safety strategies, the nation can strive not just to return to pre-COVID levels — but to surpass them and create truly safer roads for everyone.

From privacy protections to wildfire risk management, several states are introducing forward-thinking insurance legislation in 2025.

California

• SB 354 – Insurance Consumer Privacy Protection Act (ICPPA) of 2025
  Introduced by Senator Monique Limón and sponsored by Insurance Commissioner Ricardo Lara, this bill aims to enhance consumer privacy protections within the insurance sector. It establishes a modern privacy rights framework, granting consumers greater control over their personal data. Key provisions include the right to consent to data sharing, amend inaccurate information, and access details about data usage. The bill applies to over 400,000 insurance licensees in California.​

Nevada

• AB 437 – Establishment of a FAIR Plan
  In response to a significant increase in homeowners' insurance policy cancellations due to wildfire risks, Assemblymember Jill Dickman introduced Assembly Bill 437. This bill proposes the creation of a Fair Access to Insurance Requirements (FAIR) Plan, serving as an insurance program of last resort for homeowners unable to obtain coverage through standard providers. To qualify, homeowners must be denied coverage by three standard insurance companies and implement recommended wildfire mitigation measures. ​

• NV Energy's Wildfire Self-Insurance Policy Proposal
  NV Energy has submitted a proposal to the Public Utilities Commission of Nevada to establish a $500 million wildfire self-insurance fund. This initiative aims to address the financial impacts of catastrophic wildfires and provide stability for customers. If approved, the policy would be funded through customer rate adjustments over a ten-year period, with Northern Nevada customers seeing an approximate $2.40 monthly increase and Southern Nevada customers about $0.50. ​

Washington

• SB 5331 – Insurance Restitution and Fines Bill
  This bill would have allowed the Washington Office of the Insurance Commissioner (OIC) to order insurers to pay restitution directly to consumers for misconduct and to fine home and auto insurance companies up to $10,000 per violation. However, an amendment introduced in the House capped total fines at $100,000, drawing criticism for weakening consumer protections. The bill ultimately died in the House Consumer Protection and Business Committee, with opponents arguing that the cap undermined deterrence and favored large insurers over affected consumers.

Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com. 

Newly implemented tariffs on auto-related imports are expected to influence the cost structure within the auto insurance sector significantly. With potential ripple effects across the broader economy, insurance industry analysts estimate a collective increase of $27 billion to $53 billion in insurer costs over the next 12 to 18 months. This upward pressure is anticipated to gradually make its way into policy premiums — though there are still mechanisms within the system for managing or mitigating some of these increases.

How Tariffs Are Linked to Insurance Premiums

The Trump administration's new trade measures include tariffs on auto imports, raw materials, and car parts, with rates reaching as high as 25%. These additional duties could raise the cost of vehicles by as much as $15,000, according to some projections. More critically for the insurance sector, the elevated cost of replacement parts and labor will feed directly into underwriting models and pricing strategies.

Insurify, a rate-comparison platform, estimates that average annual auto insurance costs could climb from $2,300 to over $2,750 for a single vehicle. The process won't be instantaneous — insurers typically analyze the financial impacts and submit proposed rate adjustments for regulatory review before making changes. However, the inflationary effect is widely regarded as inevitable.

As Robert Passmore of the American Property Casualty Insurance Association explains, all insured parties may be affected to some extent, regardless of their vehicle’s specific part origins. Insurance spreads risk across the pool, and these broader cost increases are expected to ripple through the system.

Industry Cost-Saving and Adjustment Strategies

Although tariff-related premium increases may be delayed, financial strategists within the insurance ecosystem are already evaluating ways to adjust and control exposure. Several common approaches are gaining traction:

Competitive Rate Shopping

Insurers responded to recent inflationary periods in different ways, with some increasing rates faster than others. As a result, there is increased variability in pricing across the marketplace. Comparative analysis of available policies may uncover significant pricing differences, particularly during transitional pricing periods.

Adjusting Deductibles to Offset Premium Hikes

Raising a policy deductible is a long-standing method for reducing monthly or semiannual premium costs. While this approach shifts more initial financial responsibility onto the insured in the event of a claim, it can also help maintain affordability in times of systemic cost inflation. Common deductible ranges now span $500 to $1,000, and adjustments are often allowed mid-term without a waiting period.

Participating in Telematics Programs

Usage-based insurance programs, often referred to as telematics, use driver behavior monitoring tools to set premiums based on real-world performance metrics. These include data points like speed, acceleration, and braking patterns. While these programs can offer premium reductions for specific behavior profiles, they also come with the possibility of rate increases if monitored behavior is deemed risky.

Reassessing the Value of Bundled Policies

The conventional wisdom of bundling home and auto insurance for savings is under renewed scrutiny. Rising homeowners insurance premiums — independent of the new tariffs — may diminish or offset the financial benefit of bundling. Any bundled offering should be evaluated holistically to determine if it still delivers a net savings compared to individual policy purchases.

Looking Ahead

The interplay between trade policy and insurance markets underscores the complexity of pricing models and the interconnectedness of global supply chains. While the full extent of tariff-related insurance increases will take time to materialize, now is a prudent moment for careful evaluation of current policies, cost structures, and adjustment options. The decisions made today could help position all parties more effectively ahead of broader systemic shifts.

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