In the months following the January Eaton fire, which destroyed an estimated 6,000 homes in Altadena, a growing number of vacant lots have entered the real estate market, and many have already been sold, as reported in the Los Angeles Times.

As of early June, approximately 145 lots affected by the fire have been sold, another 100 are actively listed, and additional lots are in escrow. Records show a high concentration of purchases by developers, many acting through trusts or limited liability companies, though some buyers have acquired just a single property.

This surge contrasts with the neighboring Palisades area, where fewer than 60 burned lots have sold, and nearly 180 remain listed with slower movement.

Pace of Sales and Pricing Trends

The demand for fire-damaged properties in Altadena has remained steady. Redfin data shows that in the first four months of 2025, the median time on the market for properties in the area was 19 days, significantly down from 35 days during the same period last year.

Lot prices have ranged from $330,000 to $1.865 million, with most sales occurring between $500,000 and $700,000. Early listings, such as one initially priced at $449,000, drew multiple offers and sold for $100,000 over asking in all-cash deals. More recent sales have generally met but not exceeded asking prices.

Rebuilding Challenges and Community Response

Some residents have chosen to rebuild, while others have sold to developers due to the anticipated difficulty, cost, and time involved. Rebuilding is expected to take three to five years for most homeowners. Delays in insurance settlements and permitting processes remain obstacles.

A resident who recently sold to a mid-sized developer cited the projected multi-year rebuilding timeline and limited resources as deciding factors. Other locals expressed concern that selling to developers might change the character of the neighborhood.

Altadena, historically home to a variety of architectural styles, including Craftsman, Colonial Revival, and Tudor homes, faces potential changes depending on the new builds. Some developers have indicated a desire to replicate original architectural styles, though replicating older craftsmanship is cost-prohibitive in many cases.

Role of Developers and Speculation

Real estate professionals indicate that the majority of buyers are small-to-midsize developers rather than large firms. Some developers are acquiring single lots, while others are aiming to purchase properties in bulk. For instance, one agent reported a client seeking to purchase up to 100 lots.

Real estate agent Brock Harris, who has handled multiple transactions in the area, noted that the rebuilding process is difficult for individual homeowners and that developers may be better positioned to manage regulatory and logistical challenges.

Organizations and nonprofits have entered the market as well, some aiming to buy and resell lots to displaced residents at below-market prices. Community members have voiced concerns about possible gentrification and the loss of Altadena’s historic and cultural identity.

Broader Market Effects

Surrounding foothill communities such as La Cañada Flintridge, La Crescenta-Montrose, and Sierra Madre have also seen increased sales activity in the months following the Eaton fire. In La Cañada Flintridge and La Crescenta-Montrose, 92 homes sold in the first five months of 2025, compared with 70 during the same period in 2024. Sierra Madre saw an increase from 28 to 40 homes sold during that timeframe.

Some of this activity is driven by fire victims seeking replacement homes. In some open houses, up to 10% of potential buyers are individuals who lost homes in the Eaton fire. Agents report that even fire-prone locations have attracted strong interest from displaced residents.

Looking Ahead

While recovery in Altadena is still in its early stages, trends suggest that property transactions will continue to rise as insurance claims are processed and rebuilding decisions are finalized. The long-term outcome remains to be seen, as debates around development, affordability, and community preservation continue.

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Ategrity Specialty Holdings LLC has announced the launch of its initial public offering of 6,666,667 shares of common stock pursuant to a registration statement on Form S-1 filed with the Securities and Exchange Commission (the “SEC”). The Company will be converted to a Nevada corporation named Ategrity Specialty Insurance Company Holdings prior to the consummation of this offering. The initial public offering price is expected to be between $14.00 and $16.00 per share. The Company expects to grant the underwriters a 30-day option to purchase up to an additional 1,000,000 shares of its common stock at the initial offering price, less underwriting discounts and commissions. The Company has applied to have its common stock approved for listing, subject to official notice of issuance, on the New York Stock Exchange under the symbol “ASIC.” The principal purposes of this offering are to increase the Company’s capitalization and financial flexibility and to create a public market for its common stock. The Company intends to use the net proceeds received from this offering to grow its business and for other general corporate purposes. The Company initially intends to invest such net proceeds in fixed income securities. J.P. Morgan and Barclays are acting as joint lead bookrunning managers of the proposed offering and as representatives of the underwriters. Citigroup, TD Securities, and Wells Fargo Securities are acting as joint bookrunning managers. The proposed offering will be made only by means of a prospectus. Copies of the preliminary prospectus relating to the proposed offering may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; or Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 1-888-603-5847, or by email at barclaysprospectus@broadridge.com. A registration statement relating to the proposed offering has been filed with the SEC but has not yet been declared effective. Securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement is declared effective by the SEC. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com. 

In 2024, managing general agents (MGAs) and other delegated underwriting authority enterprises (DUAEs) in the United States generated $89.9 billion in premiums, reflecting a 15% year-over-year increase. This marks the fourth consecutive year of double-digit premium growth, according to AM Best's newly released Best’s Market Segment Report titled “MGA Premiums Show Double-Digit Growth for a Fourth Consecutive Year.”

Increase in Reporting MGAs

The number of MGAs meeting the National Association of Insurance Commissioners (NAIC) threshold for individual premium reporting rose to over 700 in 2024, approximately 100 more than in the previous year. NAIC regulations require that only MGAs generating premiums above 5% of a risk-bearing entity’s policyholder surplus must be reported individually. Market research indicates that more than 1,000 MGAs are currently active in the U.S. market, with the growth partly driven by new entrants focused on niche sectors where specialized underwriting expertise is in demand.

Specialty Lines Drive Momentum

Despite some pricing moderation in specific lines, such as workers’ compensation, professional liability (particularly directors and officers and employment practices liability), and cyber liability, MGAs writing specialty commercial lines have continued to gain momentum. David Blades, Associate Director of Industry Research and Analytics at AM Best, noted that although average account pricing has cooled in some areas, MGA premium growth has persisted. However, future growth rates may face downward pressure if pricing continues to ease across these lines.

Larger MGA Footprint

The number of MGAs with $500 million or more in direct premiums written (DPW) increased to 19 in 2024, up from 12 the year before. Additionally, six MGAs surpassed $1 billion in DPW, twice as many as in 2023. This trend suggests consolidation of market power among higher-volume MGAs.

Shift Toward Non-Exclusive Relationships

Non-exclusive MGA relationships accounted for an estimated 57% of U.S. property/casualty direct premiums written in 2024, compared to 33% in 2017. This shift indicates a growing preference among insurers for diversified distribution models. Dawn Walker, Associate Director of Industry Relation (DUAE) at AM Best, explained that non-exclusive arrangements offer insurers greater portfolio flexibility. They allow carriers to respond more nimbly to changing loss trends, pricing environments, and reinsurance availability, and make it easier to exit underperforming segments.

Introduction of Performance Assessments

In response to continued DUAE growth, AM Best introduced the Best’s Performance Assessment (PA) in 2022. The PA offers an independent evaluation of a DUAE’s operational effectiveness and its capacity to perform on behalf of insurance partners. The report highlights how DUAEs have invested strategically in technology and talent to support expansion in the specialty commercial insurance market.

AM Best is a global credit rating agency and data analytics provider specializing in the insurance sector, with operations in over 100 countries. For more details, visit www.ambest.com.

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A recent survey conducted by insurance brokerage Gallagher has revealed that a significant majority of U.S. business owners are worried about the potential impact of President Donald Trump’s newly introduced tariffs on their supply chains. The findings point to growing uncertainty among companies navigating a global economic environment marked by trade friction, cybersecurity threats, and climate-related disruptions.

Tariff Policies and Supply Chain Disruptions

According to the survey results, 90% of respondents reported concerns about how the latest round of tariffs might affect their business operations. These concerns come amid heightened geopolitical tensions and ongoing global supply chain instability.

J. Patrick Gallagher, Chairman and CEO of Gallagher, stated: “Our survey showed supply chain disruptions were a concern to business owners… Global supply chains, strained by geopolitical conflicts and extreme weather events, remain vulnerable to disruptions.”

Gallagher noted that many companies are actively seeking ways to diversify and strengthen their sourcing and logistical strategies in response to these risks.

Broader Risk Landscape for U.S. Businesses

The survey, which polled 1,000 business owners across the United States, also captured additional risks seen as top priorities for the year ahead:

• Cybersecurity: 72% of respondents expressed strong concerns about the potential for cyberattacks over the next 12 months.
• Supply Chain and Weather-Related Risks: 69% highlighted supply chain disruptions and severe weather as major areas of concern.
• Artificial Intelligence (AI): Nearly all business owners said they were at least somewhat concerned about the impact of AI on their operations. This figure is up from 85% the previous year, indicating a growing awareness of AI-related risks and uncertainties.

Claims Activity and Insurance Coverage

The Gallagher survey also provided insights into insurance claims activity among businesses:

• Nearly 87% of U.S. business owners with insurance coverage reported filing at least one claim in 2024.
• Most claims exceeded $25,000 in value.
• Only a portion of those claims were covered under existing policies, highlighting possible gaps in coverage or mismatches between risks and protection.

Context: A Complex Operating Environment

The survey’s findings align with broader challenges currently facing U.S. businesses. Supply chain stability plays a critical role in managing costs, ensuring timely delivery, and avoiding inventory shortfalls. However, the combination of geopolitical developments, extreme weather, and evolving digital threats has increased the complexity of maintaining consistent and resilient operations.

A recent Reuters analysis indicated that previous rounds of trade friction and tariff implementations have cost U.S. businesses more than $34 billion in lost sales and added expenses. As trade policies shift and global uncertainties persist, businesses are expected to remain focused on managing exposure to supply chain interruptions and other operational risks.

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

What does it really take to sell a Managing General Agency? At this year’s Target Markets Mid-Year Meeting, founder Jeremy Hitzig had the honor of moderating a powerhouse panel on “The Art of Selling a Managing General Agency.” This session brought together seasoned executives who have lived through the deal process, offering rare, unfiltered insights into timing, preparation, and life post-sale. From navigating NDAs and due diligence to choosing the right buyer and managing employee communications, this panel covered the hard truths and strategic decisions involved in preparing your business for a successful exit. Key takeaways included:

• Why having 2–3 years of runway is crucial
• How to clean up your financials and agreements
• The trade-offs between strategic vs. private equity buyers
• Why running the business and selling it are two full-time jobs
• And the #1 mistake MGA owners make during the process

Jeremy’s leadership on this panel reflects our broader philosophy at Starfish Specialty: whether building or selling, success is in the preparation, the people, and the long-term vision. Watch the full panel replay here: https://www.targetmkts.com/national-meeting-archives/item/4389-2025my-the-art-of-selling-an-mga

JAB Insurance has announced that Jin Chang will join the firm in July as a Partner, bringing more than 30 years of insurance experience, most recently as Senior Vice President of Finance at Athene, Apollo Global Management’s U.S. Insurance and Retirement Business. In addition, the firm announced that it has further strengthened its team by adding three new executives and appointing four independent directors with decades of insurance experience to its newly formed Board. Anant Bhalla, Senior Partner and Chief investment Officer of JAB, said, “I have known Jin for more than 20 years, and over that time we have collaborated on numerous ventures and transactions. I am delighted to welcome him as a partner in JAB Insurance as we focus on creating a life insurance platform with a truly differentiated value proposition for our key stakeholders, including policyholders, distribution partners, and reinsurance cedants.” In addition to Chang, JAB Insurance has invested in its team of experienced insurance talent with three new hires who bring proven leadership experience in the industry:

• Guillaume Briere-Giroux, Managing Director, who has 20 years of life and annuity experience, most recently as a Partner at Oliver Wyman;
• Andrew Taktajian, Managing Director and General Counsel, who has advised numerous clients across a variety of insurance and regulatory matters, most recently as Chief Legal Officer, General Counsel, and Corporate Secretary of Federal Life Group, Inc.; and
• Kyle Hales, Principal, who has a decade of experience in the insurance sector and brings valuable experience in building financial processes for a de novo insurer in the U.S.

Bhalla added, “The addition of Guillaume, Andrew, and Kyle to the team at JAB Insurance enables us to be an engaged owner of our insurance businesses and to provide strategic support to their management teams. We recently closed on the acquisition of Family Life in Texas and look forward to closing later this year on our previously announced acquisition of Prosperity Life. Following these transactions, JAB Insurance will have more than $25 billion of policyholder reserves and 1 million policyholders in the U.S. insurance market.” Lastly, reflecting JAB Insurance’s scale and commitment to best-in-class corporate governance, the firm has formed an independent Board, including the appointment of four new independent directors.

• David S. Mulcahy, former Chairman of the Board and Lead Independent Director of American Equity Investment Life Holding Company (formerly on the NYSE: AEL) and current Lead Independent Director of Workiva (NYSE: WK);
• Gary “Doc” Huffman, with five decades of insurance experience, most recently as the CEO and Chairman of Ohio National Financial Services, a leading provider of life insurance products and financial planning services;
• Olav Cuiper, former Executive Committee member of RGA Inc. (NYSE: RGA), the largest publicly traded U.S. life reinsurer; and
• Ron Veith, former Accenture Partner with decades of experience advising executive boards and chief executives on strategy and technology in various industries, including financial services.

Bhalla concluded, “I am delighted to welcome Dave, Doc, Olav, and Ron to our JAB Insurance Board and look forward to both their wise counsel and invaluable perspectives. Forming this independent Board is a foundational element of our insurance strategy as we at JAB are investing solely our own, permanent capital as a principal investor in the life insurance sector. By compounding this capital over decades while fostering enduring relationships with our insurance clients, we intend to build a unique and compelling insurance franchise for generations to come.” JAB Insurance Platform Team Biographies Jin Chang, Partner, JAB Insurance Jin will join JAB Insurance in July 2025 as a Partner. He brings over 30 years of financial services experience, most recently as Senior Vice President of Finance at Athene, Apollo Global Management’s U.S. Insurance and Retirement Business. Previously, Jin served as Treasurer and Head of Asset Liability Management (ALM) at Brighthouse Financial and CFO of Retail Annuities at MetLife. His prior roles included Managing Director at Apollo Credit, Managing Director and Head of Insurance Solutions at Morgan Stanley, and SVP in the Insurance Solutions Group at Lehman Brothers. Jin started his career as an Actuary at MetLife, and he is a Fellow of the Society of Actuaries. Guillaume Briere-Giroux, Managing Director, JAB Insurance Guillaume joined JAB insurance in May 2025 as a Managing Director. He has 20 years of life and annuity experience, most recently as a Partner at Oliver Wyman. He advised as an actuarial consultant on most large asset-intensive reinsurance and M&A transactions since 2008 and served as Chief Life and Annuity Reinsurance Officer in 2021 at Fortitude Re. Guillaume started his career as an actuary as Allianz Life, is a Fellow of the Society of Actuaries, a Member of the American Academy of Actuaries, and a CFA Charterholder. Andrew Taktajian, Managing Director, General Counsel, JAB Insurance Andrew joined JAB Insurance in May 2025. He brings over two decades of legal experience advising clients at privately held insurance platforms, Fortune 500 insurance companies, and at a boutique insurance regulatory law firm. Prior to joining JAB Insurance, Andrew served as Chief Legal Officer, General Counsel, and Corporate Secretary of Federal Life Group, Inc., an affiliate of Bain Capital. He previously served as Associate General Counsel, Insurance, at American Equity Investment Life Holding Company, Vice-President Corporate Counsel at Prudential Financial, and in various roles at AIG. He began his career at the Cantilo and Bennett law firm representing state insurance departments. Kyle Hales, Principal, Finance, JAB Insurance Kyle will join JAB Insurance in June 2025 as a Principal. Kyle has a decade of experience in the insurance sector and brings a comprehensive understanding of both regulatory frameworks and industry operations. Prior to JAB Insurance, Kyle served as Controller of Ibexis Life & Annuity Insurance Company. Kyle began his career as a Financial Analyst at the Utah Department of Insurance. JAB Insurance Independent Director Biographies David S. Mulcahy, Former Chairman of the Board and Lead Independent Director of American Equity Investment Life Holding Company (NYSE: AEL); Lead Independent Director of Workiva (NYSE: WK) David is a serial business builder and has worked alongside leading public and private insurers for over four decades. David joined American Equity Investment Life Holding Company (NYSE: AEL) at its inception in 1996 as an innovative, retirement annuity-focused insurer in Iowa serving middle America through independent marketing organizations (IMOs). At the time, AEL offered a novel product offering, fixed index annuities (FIAs), leveraging industry mega trends including “indexing” and “no fee” products to build the FIA category. David served on the Board of AEL from 1996 to 2006 and again from 2011 through the company’s take private sale to Brookfield in 2024. Over his tenure at AEL, David served as Non-Executive Board Chairman, Lead Independent Director, Chairman of the Nominating and Corporate Governance Committee, and prior to that, as Chairman of the Audit Committee. David currently sits on the Board of Workiva (NYSE: WK), a cloud-based software company, where he serves as Lead Independent Director and is a member of the Audit Committee and Compensation Committee. David holds a BBA in Accounting and Finance from the University of Iowa and earlier in his career was a tax partner at E&Y. Gary “Doc” Huffman, Former CEO and Chairman of Ohio National Financial Services Over the past 50 years, Doc held various leadership roles in the insurance sector. Most recently from 2008 to 2022 at Ohio National Financial Services which culminated in his role as CEO and Chairman. Prior to Ohio National, Doc held senior executive positions at Union Central Life Insurance Company and served as Executive Vice President and Co-Chief Operating Officer of the holding company of Ameritas, as well as on the Ameritas Board. He also worked in various senior roles across distribution, marketing, and annuity strategy at Massachusetts Mutual, where he began his career in 1975 as an agent. Doc is a University of Kentucky graduate and is involved in numerous advisory and board positions, including at AGAM; AeCe, Ltd. Bermuda; and Cincinnati Children’s Hospital. Olav Cuiper, Former Executive Committee member of RGA Inc. Olav joined RGA, the largest publicly traded U.S. life reinsurer, in 2009 and held various leadership positions, culminating in his role as Executive Vice President and Global Chief Client Officer. During his time at RGA, he led the EMEA region from 2011 to 2021, contributing to the business’ significant growth over his tenure. He also served as Chairman of the Board for RGA Middle East, Chairman of the Board for Aspire Health (RGAS’s Middle East health initiative), director at several RGA-related boards, and as a member of the advisory Board of Carepay International, RGA’s technology partner in the UAE. Prior to joining RGA in 2009, he served as Managing Director Europe at Fortis Insurance International, holding board positions across Europe, and as Managing Director of Group Life/Institutional Clients for Delta Lloyd Insurance NV. Olav currently serves on several boards in Europe and the U.S. related to JAB’s pet insurance businesses. Ron Veith, Former Accenture Partner with financial services expertise Ron has over 40 years of experience advising executive boards and chief executives as they undertake strategic change initiatives. He has experience working with global leaders in the financial services, consumer goods and services, and technology industries. Ron was a partner with Accenture, serving in a variety of client and firm leadership roles in the consumer goods and services sector, including as Global Managing Partner for the firm’s Oracle Practice. Most recently, Ron returned to his consulting roots providing strategy formulation, business development, operational improvement, and practice management advisory services primarily in the financial services industry. Ron has a Bachelor of Industrial Engineering degree from the Georgia Institute of Technology, and an MBA from the University of Notre Dame. About JAB Insurance JAB Insurance is the newly formed insurance segment of JAB Holding Company, which recently closed on the acquisition of Family Life, a Texas-domiciled life insurance company with licenses in 49 states, and previously announced the pending acquisition of Prosperity Life Group. With these transactions, JAB Insurance will have more than $25 billion of policyholder reserves and 1 million clients in the U.S. insurance market, with a clear strategy to build a leading global life insurance platform. About JAB Holding JAB is an investment holding company that invests in insurance and consumer-focused industries with attractive long-term dynamics, including strong growth prospects, attractive margin and cash flow characteristics, and proven resiliency. JAB is the controlling shareholder of Coty Inc., a global leader in beauty, and JDE Peet’s, the world’s leading pure-play coffee and tea company. It is also the anchor shareholder of Krispy Kreme, Inc., a global leader in freshly delivered doughnuts. JAB is the controlling shareholder of National Veterinary Associates, a leading veterinary care organization; Independence Pet Holdings, a leading provider of pet insurance in North America; Pinnacle Pet Group, a leading provider of pet insurance in Europe; Panera Brands Inc., one of the largest fast casual restaurant companies in the United States, which includes Panera Bread, Caribou Coffee and Einstein Bros. Bagels; Pret A Manger, a global leader in the ready-to-eat fresh food market; and Espresso House, the largest branded coffee shop chain in Scandinavia. Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

A recent study by the California Workers’ Compensation Institute (CWCI) has revealed that a small fraction of COVID-19 workers’ compensation claims in California — those involving Long COVID — accounted for the vast majority of claim-related costs during the accident years 2020 through 2022.

Out of 126,397 insured and self-insured COVID-19 claims analyzed, only 4.7% involved medical treatment extending beyond 90 days after the date of injury. These Long COVID cases, while representing a small portion of total claims, made up 82.1% of the medical treatment payments and 73.7% of the total claim payments, which include indemnity costs and expenses. In total, medical payments across all claims reached $128.4 million, with Long COVID claims responsible for $105.5 million. Total payments across all claims amounted to $350.6 million, with Long COVID cases accounting for $258.3 million.

The study also noted that just 14.6% of all COVID-19 workers’ compensation claims involved any medical treatment, suggesting that most claims were relatively minor in nature. However, the nearly 6,000 Long COVID cases often involved significant long-term medical needs that delayed or prevented employees from returning to work, contributing to higher costs.

Payment discrepancies between Long COVID claims and shorter-duration claims were notable. On average, medical payments for Long COVID were 105 times higher, and indemnity payments were 37 times higher. These elevated costs were consistent across all body part classifications, with the most pronounced differences observed in cases involving the lungs, multiple body parts, or unspecified (“other”) body parts.

The study identified the top 10 diagnostic categories associated with Long COVID claims, which reflect the condition’s multisystem nature. These categories included:

• Respiratory system disorders (17.8%)
• Circulatory system disorders (9.0%)
• Nervous system disorders (8.7%)
• Connective tissue, soft tissue, and bone disorders (5.2%)
• Endocrine system disorders (4.9%)
• Mental health conditions (4.4%)
• Digestive system conditions (3.4%)

Together, these categories accounted for over 80% of all diagnoses tied to Long COVID claims in the dataset.

The study arrives at a time when COVID-19 claim volume has declined sharply in California’s workers’ compensation system. After a surge in claims following Governor Gavin Newsom’s state of emergency declaration in March 2020, recent months have seen a dramatic drop-off. However, renewed concerns have emerged regarding a potential summer COVID-19 surge, prompted by the identification of the NB.18.1 variant and recent changes to CDC vaccine guidelines that may impact access to immunizations during peak travel season.

CWCI’s full report, titled Long COVID-19 Claim Characteristics and Treatment in California Workers’ Compensation, includes detailed findings and graphics. It is available to CWCI members and subscribers at www.cwci.org, and can be purchased by non-members through the institute’s online store.

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A proposed budget bill from the U.S. House of Representatives includes more than $1 trillion in cuts to health care programs over the next decade, with significant implications for Medicaid recipients and Affordable Care Act (ACA) premium subsidies. If enacted, the legislation could result in at least 15 million people losing health insurance coverage and have ripple effects across the broader economy, especially in economically vulnerable regions.

Scope of Proposed Cuts

The bill includes approximately $715 billion in cuts to Medicaid and an additional $335 billion by ending ACA premium tax credits. The total cuts exceed $1 trillion over ten years. While the proposal includes work requirement provisions for Medicaid, those measures account for an estimated $280 billion in savings, meaning the majority of the reductions stem from broader coverage rollbacks.

Projected Coverage Losses

The Congressional Budget Office (CBO) initially projected that 13.7 million people could lose insurance under the proposed changes, but more recent estimates from the Center on Budget and Policy Priorities raise that figure to at least 15 million. These coverage losses would primarily affect low-income individuals who rely on Medicaid or ACA subsidies for health insurance.

Economic and Employment Impacts

Researchers estimate that the cuts would disproportionately affect local economies with higher unemployment rates. Approximately 27 million workers live in counties with weaker labor markets. Based on economic modeling from past federal spending programs, analysts estimate that for every $1 billion in reduced Medicaid funding, up to 25,000 jobs could be lost. This suggests that up to 850,000 jobs could be at risk in economically weaker counties if the bill’s proposed Medicaid cuts are implemented.

Health care providers, especially in rural areas, are expected to experience financial stress from these reductions. The bill would result in a $770 billion decrease in payments to providers over ten years, potentially leading to hospital closures and reduced access to care.

Historical Context and Medicaid's Role

Medicaid has historically played a stabilizing role during economic downturns. During the 2009 recession, federal increases in Medicaid funding were linked to substantial job creation across various sectors. Research indicates that expanded public health insurance coverage has also helped reduce uncompensated care costs, particularly following the ACA’s implementation. Those costs dropped by roughly one-third due to Medicaid expansion.

The new proposal targets many of those ACA-era expansions. Without public coverage, individuals often delay or forego care, potentially leading to higher emergency room use and increased burdens on local health systems. This dynamic could contribute to rising insurance premiums and increased pressure on state and local budgets to fund uncompensated care.

Geographic Disparities

Data from the U.S. Census Bureau and Bureau of Labor Statistics show a correlation between high Medicaid enrollment rates and elevated unemployment in certain counties. Approximately half of the proposed Medicaid cuts would impact counties with above-average unemployment rates, making them more susceptible to negative economic fallout.

If enacted, the House budget proposal would significantly scale back public health insurance programs. Beyond the direct effect of increased uninsurance, the proposed cuts could impact employment, strain local health care systems, and increase costs for insured populations through indirect effects such as uncompensated care and emergency treatment demands. The final outcome depends on future legislative decisions and negotiations.

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

PureHealth has announced the expansion of its insurance subsidiary, Daman, marking the company’s entry into the Property and Casualty (P&C) insurance market. The move shifts Daman from a health-only provider to a multi-line insurer, reflecting a broader service strategy across the United Arab Emirates (UAE).

As part of this transition, Daman will formally change its legal name to The National Insurance Company – Daman. The rebranding aligns with the organization's goal of offering a wider suite of insurance products to individuals and businesses within the region.

According to PureHealth, the diversification into P&C insurance aims to complement its existing health insurance portfolio, while also supporting risk management efforts across multiple sectors. The initiative is described as part of a larger plan to build a fully integrated platform across healthcare and insurance services.

Daman, which currently provides health insurance coverage to more than three million members through a network of over 3,000 healthcare providers in the UAE, will continue to operate under its well-known brand name while introducing new P&C products in phases. Current services for existing health insurance members will remain uninterrupted.

Company officials emphasized that the strategic expansion responds to the increasing demand for diversified insurance options in the UAE. Khaled Binshaiban Almheiri, Chairman of The National Insurance Company – Daman, noted that the organization will maintain its commitment to customer trust and service as it scales its offerings.

The UAE’s insurance sector has been experiencing significant growth. According to the Central Bank of the UAE, the total number of written insurance policies across all segments rose to 14.6 million in 2023, up from 8.4 million in 2022. The increase is attributed largely to a higher volume of property and liability policies.

Market research from Verified Market Research projects that the UAE's Property and Casualty insurance market will reach approximately USD 16.8 billion by 2031, highlighting a notable growth trajectory in this segment.

Daman’s health insurance reputation remains strong. It was recently recognized as the best-perceived health insurance brand in the UAE, as reported in the 2024 UAE Healthcare report from Brand Finance.

The expansion positions PureHealth and Daman to participate more fully in a rapidly evolving insurance market while reinforcing their existing footprint in health coverage.

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

Michigan drivers will see changes next month in the annual fees they pay toward the state’s catastrophic insurance claims fund, according to a June 2 report from Michigan Public.

The Michigan Catastrophic Claims Association (MCCA) announced that fees for drivers with unlimited personal injury protection (PIP) coverage will decrease from $90 to $82. Conversely, for those who have opted for limited PIP benefits, the fee will increase from $20 to $23.

MCCA Executive Director Kimberly Bezy stated that the adjustments are necessary to address a roughly $2.1 billion deficit in the fund. “We really take a look at how much that is going to be and determine if our current funds are going to be sufficient,” Bezy said. “If there is not sufficient money, then we look at any deficit or any shortfall and we actually amortize that out by no less than 15 years.”

The current rates, despite the changes, remain lower than those recorded between 2003 and 2021, based on data from the MCCA’s historical assessments.

In 2021, Michigan implemented reforms to its auto insurance laws that ended the mandate for all drivers to carry unlimited PIP coverage. That same year, the MCCA issued $400 rebate checks, following guidance from Governor Gretchen Whitmer, using what was described at the time as surplus funds.

Some advocates for crash survivors have criticized both the 2021 policy changes and the rebate disbursements, arguing that they contributed to the current deficit. They also claim that the system has made it harder for people with severe injuries to get necessary care.

Maureen Howell, a member of the advocacy group We Can’t Wait, expressed concern over the association's structure, stating, “Nobody that is a family member or a provider or anyone that would have the ability to understand the situation from the standpoint of survivors is involved in the makeup of the MCCA.”

In response, the MCCA maintains that it continues to serve injured parties. A press release issued on Monday stated the organization is nearing $25 billion in total payments since its founding in 1978. Bezy added that since the 2021 reforms, survivor payouts have increased in some areas.

Still, at the end of 2023, 15,388 cases remained open, and advocates remain skeptical. Some argue that even unlimited policies don’t ensure unlimited care due to reimbursement rate cuts that have forced many care providers out of the market.

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

The National Oceanic and Atmospheric Administration (NOAA) announced Monday that it will begin hiring for “mission-critical field positions” to help stabilize National Weather Service (NWS) operations, following significant workforce reductions earlier this year.

The agency said the roles will be advertised under a temporary exemption from the federal hiring freeze. NOAA also stated it is addressing field office shortages by reassigning current staff and utilizing temporary hires. The agency did not specify how many jobs will be posted and declined to release further details.

Earlier this year, cuts implemented by the Department of Government Efficiency, led by Elon Musk, resulted in the termination of hundreds of weather forecasters and placed many other NOAA employees on probationary status. A subsequent round of layoffs eliminated more than 1,000 additional positions.

By April, nearly half of all NWS forecast offices had vacancy rates of 20% or more. The staffing reductions have also impacted the Federal Emergency Management Agency (FEMA).

The National Weather Service is responsible for daily forecasts, real-time storm warnings, climate monitoring, and extreme weather tracking. The announcement to hire comes just as the hurricane season begins, amid concerns from experts about the agency’s capacity to maintain essential services.

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