A groundbreaking analysis by ZestyAI reveals a critical issue in homeowners' insurance coverage: millions of properties across the United States may be underinsured due to unreported or inadequately covered secondary structures. Leveraging artificial intelligence and aerial imagery, ZestyAI analyzed one million residential properties nationwide and found that 45% include multiple structures such as detached garages, sheds, barns, or accessory dwelling units (ADUs). Many of these structures are either overlooked or improperly insured, posing a significant challenge for both homeowners and insurers.

Key Findings

• Structure Prevalence:
  • 31% of homes have one additional structure.
  • 11% have two additional structures.
  • 4% have four or more secondary structures.
• Regional Trends:
  • States with strong agricultural sectors, including Montana (59%) and Wyoming (58%), report the highest prevalence of multi-structure properties.
  • Densely populated areas like California and Rhode Island show increasing numbers of ADUs due to evolving zoning laws.
  • States like Georgia (26%) and North Carolina (29%) report the lowest prevalence of secondary structures.

According to ZestyAI’s founder and CEO, Attila Toth, “Understanding the full scope of a property’s structures is critical for accurate risk management by insurers. Our findings underscore the importance of advanced analytics to help insurers ensure comprehensive coverage while managing risk effectively.”

Why This Matters

Undeclared secondary structures leave homeowners vulnerable to financial losses in the event of damage, as standard policies often provide limited coverage for detached structures. For insurers, the lack of visibility can lead to unexpected claims and elevated risks. AI-powered tools are helping address these gaps by providing real-time property assessments, eliminating the need for slower and often outdated traditional inspections. Beyond identifying secondary structures, advanced analytics also assess roof conditions and other critical factors to help insurers refine underwriting processes and reduce potential losses. As secondary structures like ADUs continue to rise, particularly in urban areas with changing zoning laws, ensuring accurate property assessments and comprehensive insurance coverage has never been more vital. For more insights from ZestyAI, visit www.zesty.ai.

LWCC, Louisiana’s largest workers’ compensation insurance carrier, announced it is acquiring 100% of North Carolina-based Prescient National, an AM Best “A” rated, high-performing national workers’ compensation insurance company, as a subsidiary of the company. ‍“Prescient National has a demonstrated track record of outstanding performance that positions it as an attractive complement to LWCC’s conservative investment strategy,” said Kristin W. Wall, LWCC’s president and CEO. “We believe the acquisition will benefit our current and future policyholders.” The acquisition brings together two top-performing workers’ compensation companies with a shared commitment to stakeholders and a culture of excellence. In addition to providing for the diversification of LWCC’s investment portfolio, LWCC expects the two companies to learn from and leverage the other’s strengths for their mutual benefit. “We are excited to enter into this long-term partnership with a company that deeply understands our business,” said Bruce Flachs, CEO of Prescient National. “The entrepreneurial, forward-looking approach our team has taken to build this company will be enhanced with LWCC’s support.” Prescient National will continue to operate as a separate business in Charlotte, North Carolina. Keefe, Bruyette & Woods, A Stifel Company, served as exclusive financial advisor and Sidley Austin LLP served as legal counsel to LWCC on this transaction. Howden Capital Markets & Advisory served as exclusive financial advisor and Robinson Bradshaw served as legal counsel to Prescient National on this transaction. About Prescient National Prescient National is headquartered in Charlotte, North Carolina. We specialize in delivering forward-thinking workers' compensation insurance solutions to employers throughout the United States.   By anticipating legal trends, market shifts, and economic cycles, Prescient National provides tailored risk management, claims handling, and coverage programs that help employers address today’s needs while preparing for future challenges. About LWCC LWCC is a Champion of Louisiana and proud to be headquartered in the state capital, Baton Rouge. As a model private mutual workers’ comp company, we are dedicated to excellence in execution from underwriting to compassionate care of injured workers. We are proud to partner with our agents and together deliver outstanding service to our policyholders and their workers. Louisiana Loyal, a movement we launched and continue to lead to celebrate and elevate Louisiana, drives us in pursuit of our purpose to help Louisiana thrive by bettering our state one business and one worker at a time. LWCC has been consistently recognized by industry leaders and named to the Ward’s 50® group of top-performing insurance companies, supporting our promise to provide safety, security, and stability to businesses in Louisiana. For more information on LWCC, its services, and its efforts to elevate Louisiana, please visit www.lwcc.com.

The U.S. home insurance landscape is experiencing a seismic shift as climate risks transform the industry's approach to coverage. A groundbreaking investigation by the Senate Budget Committee, led by Senator Sheldon Whitehouse, reveals a disturbing trend: insurers are systematically abandoning homeowners in high-risk regions.

The Hilb Group announced on December 18, 2024, that it had acquired a (so far, unnamed) Texas-based property and casualty business. The acquisition took effect December 1, 2024, and adds to the company’s growing property and casualty offerings in the state and region.

About Hilb Group: The Hilb Group is a leading property and casualty and employee benefits insurance brokerage and advisory firm headquartered in Richmond, Virginia. Hilb Group is a portfolio company of The Carlyle Group, a global investment firm. Hilb Group seeks to grow through strategic acquisitions and by leveraging its resources and expertise to drive organic growth in its acquired agencies. The company has completed more than 180 acquisitions with over 125 offices in 30 states. Hilb Group is rated as one of the Fastest Growing Brokers by Business Insurance, a Top P/C Agency by Insurance Journal, and one of America's Fastest Growing Private Companies in the Inc. 5000. For more information on Hilb Group's growth as well as career opportunities, please visit our website at http://hilbgroup.com.

The global pet insurance market is poised for extraordinary growth, projected to more than double from $12.8 billion in 2023 to $32.6 billion by 2030. A new report from Research and Markets highlights the trends and innovations fueling this surge, including the rise of exotic pet insurance, customizable plans, and multi-pet policy adoption.

Humanization of Pets Drives Demand

Pet owners are increasingly treating their animals as family members, fueling demand for comprehensive pet insurance solutions. As veterinary care advances, many owners are opting for high-end treatments such as cancer therapies and advanced diagnostics. With these services often accompanied by hefty price tags, pet insurance has emerged as a vital financial safety net for unexpected and routine care.

Rising Costs of Veterinary Care Necessitate Coverage

The skyrocketing cost of veterinary services is a significant growth driver. Complex surgeries, MRI scans, and long-term disease management require substantial investment, making pet insurance a critical resource for owners looking to provide the best care without financial strain. Policies that absorb these expenses are helping pet owners pursue cutting-edge treatments for their animals.

Innovation in Coverage: Exotic Pets and Multi-Pet Plans

A notable shift in the industry is the diversification of insurance options. While dogs and cats dominate the market, demand for policies covering exotic pets—such as birds, reptiles, and small mammals—is on the rise. Multi-pet policies are also gaining traction, providing cost-effective solutions for households with more than one furry or feathered family member.

Digital Tools and Preventive Care Enhance Accessibility

The integration of digital tools is transforming the pet insurance experience. Mobile apps now allow owners to file claims, track reimbursements, and access veterinary telehealth services conveniently. Simultaneously, wellness plans, covering routine care like vaccinations and dental cleanings, are helping owners manage preventive care costs over time.

Regional Highlights and Market Leaders

The United States and China are leading the charge in market growth. The U.S. market was valued at $3.4 billion in 2023, while China is expected to grow at an impressive 13.4% CAGR, reaching $5.0 billion by 2030. Other regions, including Japan, Canada, and Europe, are also experiencing steady expansion. Key players such as Anicom Insurance, Animal Friends Insurance Services Limited, and MetLife Pet Insurance are leveraging digital platforms and flexible coverage options to meet evolving pet owner needs.

Future Outlook: A $32.6 Billion Market

With a projected CAGR of 14.3%, the pet insurance market is positioned for remarkable growth through 2030. Innovations in policy customization, broader coverage for exotic pets, and advanced digital tools will continue to shape the industry, offering pet owners peace of mind and improved access to essential care. For more details on the report, visit Research and Markets' website.

In response to skyrocketing flood insurance costs under the National Flood Insurance Program (NFIP), Senators Cory Booker (D-NJ) and Bill Cassidy (R-LA) have introduced a bipartisan bill to provide financial relief to low- and middle-income homeowners. The Flood Insurance Affordability Tax Credit Act aims to ease the burden of rising premiums by offering a 33% refundable tax credit to eligible NFIP policyholders. The tax credit would apply only to primary residences and exclude married taxpayers filing separately, according to the legislation.

Relief for Policyholders Facing "Outlandish" Premiums

Senator Cassidy criticized the current NFIP premium structure, calling it “outlandish” and unsustainable for many homeowners. He emphasized that the proposed tax credit would not only help current policyholders but also encourage others to re-enroll in the program. “This tax credit provides relief to current policyholders and offers a path for others to regain access to flood insurance while we work to fix the broken system,” Cassidy said in a statement shared by AM Best. The bill also instructs the Treasury Department to establish a program allowing premium payments to be made in advance on behalf of policyholders, a measure aimed at further alleviating financial pressures.

Rising Flood Risks and Insurance Costs

Senator Booker highlighted the increasing challenges faced by homeowners in flood-prone states like New Jersey, where rising risks from extreme weather events have coincided with higher insurance costs. “This bipartisan legislation will provide much-needed relief for low- and middle-income households, particularly in New Jersey,” Booker said. “It is a critical step toward expanding access, lowering costs, and safeguarding families from the impacts of extreme weather and flooding.”

NFIP Solvency Concerns

The bill comes amid growing concerns over the NFIP's solvency. A recent report from FEMA, which oversees the program, outlined the financial strain caused by efforts to phase out subsidies and increase premiums to achieve rate adequacy. While these changes aim to stabilize the NFIP’s finances, they have led to a significant drop in policyholder participation, with many homeowners unable to afford the higher premiums. Despite these challenges, the NFIP remains a vital source of flood insurance for millions, especially in regions with limited private market options. This proposed legislation could mark an important turning point for the NFIP, providing immediate financial relief to vulnerable homeowners while addressing long-term participation challenges.

Starfish Specialty is proud to announce the launch of STAFFprotect, a groundbreaking Employment Practices Liability Insurance (EPLI) product tailored specifically for the Professional Employer Organization (PEO) and Staffing Industry vertical. Designed to address the unique challenges faced by these industries and their clients, STAFFprotect delivers a robust and comprehensive mono-line Master Program solution that redefines EPLI coverage in today's marketplace.

Key Features of STAFFprotect Coverage

STAFFprotect sets itself apart with unparalleled features and benefits, ensuring seamless and comprehensive protection:

• Separate “PEO” and “Staffing” Insuring Agreements: Tailored provisions and definitions to support the specific needs of each industry.
• Comprehensive Coverage: Coverage solutions designed to address downstream exposure for PEO clients and Staffing Firm customers.
• Auto “Nose” and “Tail” Features: Innovative policy features that prevent gaps in coverage for both incoming and outgoing clients.
• Access to ePLace Risk Mitigation Services: Unlimited, full access to industry-leading resources included as part of the policy premium.
• Non-Auditable Policy: Provides a clear, fixed cost for clients.
• Minimum SIR and Premium: $15,000.

Who Is STAFFprotect Designed For?

STAFFprotect was created for sophisticated PEOs and Staffing Firms looking for a transparent, customized EPLI solution for themselves and their clients. This product offers affirmatively tailored coverage that addresses industry-specific exposures, making it a one-of-a-kind offering in the EPLI marketplace.

Comprehensive Coverage for Employment-Related Losses

STAFFprotect covers a wide range of employment-related risks, including but not limited to:

• Wrongful termination, harassment, and workplace bullying
• Employment-related misrepresentation, libel, slander, and defamation
• Negligent supervision, hiring, and retention
• Sexual harassment, retaliation, and workplace violence expense
• Wage and hour defense, immigration claims, and negligent evaluation

Coverage Availability and Limit Options

STAFFprotect offers flexible coverage options, including limits up to $5,000,000 for:

• Employment Practices Liability for PEOs, Staffing Firms, and their clients
• Third-party discrimination (optional for Named Entity and PEO clients)
• Workplace violence expense, wage and hour defense, and immigration claims extensions (for Named Entity only)

Automatic "nose" and "tail" features further enhance the policy's flexibility, ensuring continuous protection for PEO clients.

A+(XV) Rated and Backed by Great American

STAFFprotect is underwritten on A+(XV) paper and includes in-house claims handling by Great American, offering clients peace of mind with a trusted and reliable partner.

Supporting Risk Mitigation with ePLace Services

In addition to comprehensive coverage, policyholders gain unlimited access to ePLace risk mitigation services, providing essential tools and resources to proactively manage risks and prevent claims.

Learn More About STAFFprotect

STAFFprotect is the ultimate EPLI solution for PEOs and Staffing Firms seeking customizable, transparent, and comprehensive coverage. For more information, contact the Starfish Specialty team at STAFFprotect@starfishspecialty.com. This innovative product reaffirms Starfish Specialty's commitment to providing cutting-edge insurance solutions that meet and exceed the needs of its clients in dynamic and evolving industries.

California homeowners may soon see relief. On Friday, the state’s Department of Insurance announced it has received a procedural green light to make critical changes aimed at stabilizing the insurance market. The changes come in response to mounting challenges, including rising wildfire risks and insurers pulling back coverage.

New Tools for Insurance Companies

The key change allows insurance companies to use forward-looking catastrophe models to calculate premiums. These models rely on predictive data rather than outdated historical records, which California Insurance Commissioner Ricardo Lara noted no longer adequately reflect the reality of today’s climate challenges. By incorporating future risks, insurers can set rates that better align with California’s wildfire landscape. In exchange for this new tool, insurers are expected to expand their coverage offerings, particularly in wildfire-prone areas where many homeowners have struggled to maintain policies.

Early Signs of Progress

While the broader impacts of these changes will take time, Lara said Californians are already starting to see movement. In an interview on Friday, Lara pointed to Farmers Insurance, California’s second-largest home insurance provider, which recently announced plans to expand its operations in the state. Farmers cited an improved insurance outlook in California as a reason for its decision earlier this week. “By mid-next year, you’re going to start seeing more companies come in, you’re gonna start seeing these rates really reflect homeowners' investment in their property,” Lara explained, highlighting a projected mid-to-late 2025 timeline for further improvements.

What’s Next for Consumers?

The Department of Insurance also announced plans to develop a public catastrophe model to monitor and validate insurers’ calculations. This effort aims to hold companies accountable and ensure transparency in the rate-setting process. More details on this initiative are expected to emerge by spring 2025. While these changes represent a turning point for California’s troubled insurance market, it remains a gradual process. Homeowners in wildfire-affected regions can look for signs of progress in the coming months as more insurers re-enter the market and expand their offerings.

Conclusion

For homeowners frustrated by dropped policies and rising premiums, the state’s approval of forward-looking catastrophe models offers a glimmer of hope. California’s insurance market is taking steps to adapt to modern risks, promising more coverage options and fairer rates for residents.

Cyberattacks continue to disrupt businesses across industries, with recent ransomware incidents underscoring the financial and operational risks companies face when their digital infrastructure is compromised. Two high-profile cases in recent weeks—a ransomware attack on vodka producer Stoli Group and a cyber breach impacting Krispy Kreme—highlight the scale and severity of modern cybersecurity threats.

Stoli Group: Ransomware Attack Contributes to Bankruptcy Filing

In November 2024, Stoli Group’s CEO, Chris Caldwell, disclosed in a Texas bankruptcy court filing that a ransomware attack in August 2024 played a significant role in the financial troubles of its U.S. subsidiaries, Stoli Group USA and Kentucky Owl. The subsidiaries are currently facing $84 million in debt. According to Caldwell, the attack caused severe disruptions to the company’s enterprise resource planning (ERP) system, halting internal processes such as accounting and forcing manual workarounds. The operational strain exacerbated existing financial challenges, contributing to Stoli Group’s inability to meet debt repayment requirements. Key Impacts of the Attack:

• Severe disruption to IT infrastructure and operational processes.
• Delays in financial reporting, leading to lender accusations of default.
• Restoration of systems expected no earlier than Q1 of 2025.

While the company did not disclose details about the attackers or whether a ransom was paid, the incident added to a series of "atypical events" that Caldwell said have weakened Stoli’s financial stability. The ransomware attack also hindered Stoli Group's ability to comply with debt repayment requirements due to delays in providing financial data to lenders. Stoli Group’s financial troubles are compounded by ongoing legal battles with the Russian government. The company has faced escalating issues since a 2000 executive order by President Vladimir Putin, which sought to reinstate government ownership of the brand. Recent events, including the confiscation of two distilleries in Russia and the company’s designation as “extremists” due to their support of Ukrainian refugees, have further strained operations. The ransomware attack, described as one of several "atypical events," underscores the significant impact cyber incidents can have on already vulnerable businesses.

Krispy Kreme: Cyberattack Disrupts Online Operations

On December 11, 2024, Krispy Kreme reported a cyberattack that disrupted its IT systems, particularly impacting online ordering in parts of the United States. The doughnut chain disclosed the breach in a regulatory filing, noting that the incident has had a "material impact" on operations and revenue. Details of the Incident:

• Unauthorized activity was first detected on November 29, 2024.
• Online ordering disruptions continue in some regions, while in-person operations remain open.
• Federal law enforcement has been notified, and cybersecurity experts are working to contain and investigate the breach.

Krispy Kreme stated that the full scope of the attack is still under investigation. The company warned that the incident’s expected costs—including lost revenue, fees to cybersecurity experts, and recovery efforts—are likely to have a material impact on its financial condition in the near term. Despite these disruptions, Krispy Kreme emphasized that its physical stores remain operational and it expects to mitigate some of the costs through its cybersecurity insurance.

The Financial and Operational Toll of Cyberattacks

The recent cyber incidents at Stoli Group and Krispy Kreme highlight the significant operational disruptions and financial challenges businesses face when targeted by cybercriminals. While Stoli Group’s ransomware attack contributed to a broader financial crisis, Krispy Kreme’s breach disrupted critical digital operations, underscoring how cyberattacks can impact companies in different but equally damaging ways. From operational slowdowns to financial reporting delays, these cases reflect the widespread risks businesses encounter as they increasingly rely on interconnected digital infrastructure.

A Persistent Threat to Businesses

The Stoli Group and Krispy Kreme cyberattacks serve as stark reminders of the risks businesses face from ransomware and data breaches. Whether contributing to bankruptcy or disrupting revenue streams, cyber incidents have far-reaching consequences that can amplify existing vulnerabilities. As investigations and recovery efforts continue, these events highlight the ongoing need for vigilance in addressing cybersecurity risks across all sectors.

USG Insurance Services, Inc., a prominent national wholesaler and MGA, is pleased to announce the addition of Ara Terry to their Canonsburg, Pennsylvania team. Terry will be working under the guidance of Becca Faust, Executive Vice President: Branch Manager, to further strengthen USG's growth and service offerings. With over 19 years of experience in the insurance industry, Terry brings a wealth of knowledge and expertise. She began her career as an Underwriting Service Specialist at The Redwoods Group and quickly advanced to the role of Vice President at AmWins Group. Throughout her career, Terry has developed a strong track record in sales and marketing, and she is known for her collaborative approach and ability to cultivate lasting relationships with clients. Terry's strategic insight, market trend analysis, and exceptional negotiation skills have consistently led to outstanding results. Her commitment to excellence and her hands-on leadership style will undoubtedly make her a valuable asset to the USG team as they continue to expand. 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. USG represents 400+ A rated carriers, both admitted and non-admitted and is an MGA for 14 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.