AAU, a division of USG Insurance Services, Inc., is thrilled to announce the addition of Kelly Buck to their team as a Producer/Broker on their Personal Lines team, working under the guidance of Lisa Esselstyn, Director of AAU. With over 20 years of distinguished experience in the insurance industry, Buck brings extensive expertise in property and casualty underwriting, client service, and sales. In her most recent role at Risk Placement Services, she specialized in Personal Lines underwriting and showcased her talent for building strong client relationships, analyzing risks, and navigating market complexities. Buck’s extensive industry knowledge and exceptional talent for client relations are expected to drive her success with AAU’s Personal Lines Team. Both AAU and USG are eager to see the positive impact of her skills and enthusiasm as she contributes to their ongoing growth. This move is the most recent change that AAU has implemented in its plan to expand operations nationwide and continue to provide innovative solutions for the risk management industry. About AAU Allied American Underwriters (AAU) is a program manager that offers programs for commercial lines to USG retail agents and other distribution channels i.e.: wholesale and direct. There are six divisions: Workers Compensation, Environmental, Programs, Specialty, Personal Lines, and Commercial Surety. AAU is a division of USG Insurance Services, Inc. CONTACT INFORMATION: KELLY BUCK Producer/Broker: Personal Lines d: 985.231.3061 e: kbuck@aauins.com

As artificial intelligence (AI) continues to revolutionize industries worldwide, property and casualty (P&C) insurers are stepping up to play a vital role in shaping ethical AI. A recent report from the Insurance Information Institute (Triple-I) and SAS, titled Pioneering Ethical AI: The Crucial Role of Property and Casualty Insurers, outlines how P&C insurers are uniquely positioned to influence the responsible development and use of AI across industries, while also helping establish regulatory best practices. Here's a look at why insurers are critical in advancing ethical AI.

A Unique Opportunity for Insurers to Lead

P&C insurers have always been at the forefront of assessing and mitigating risks, making them ideal leaders in the ethical AI conversation. According to the report, insurers are well-equipped to help guide AI regulations and shape technology in a way that balances innovation with responsibility. This leadership role extends beyond their own industry, as insurers have the opportunity to influence how AI is used across various sectors.

Key Insights from the Report

The report identifies several critical areas where insurers can play a leading role in shaping ethical AI:

• Navigating complex regulations: Insurers operate within a web of regulatory environments, spanning 50 U.S. states and multiple global jurisdictions. Their deep understanding of these frameworks positions them as essential contributors to shaping adaptable, effective AI regulations.
• Leveraging data expertise: For centuries, insurers have excelled at gathering and analyzing data. This experience is crucial as AI relies heavily on data-driven insights. However, insurers also understand the limitations of data and can offer strategies to mitigate these challenges in AI applications.
• Anticipating emerging risks: Insurers are skilled at identifying potential risks before they materialize. Their forward-looking approach is especially valuable in the rapidly evolving AI landscape, where new challenges and opportunities arise constantly.

Ethical AI Framework for Insurers

The report recommends that P&C insurers take a proactive approach in implementing ethical AI practices. This includes developing a robust ethical AI framework, educating executives and employees about AI, and participating in ethical AI initiatives. These actions will ensure that insurers not only protect their policyholders but also foster trust in AI systems. Reggie Townsend, Vice President of Data Ethics at SAS, highlights the role insurers can play in promoting responsible AI: "Insurance plays a crucial role in protecting lives, livelihoods, and businesses around the world. The global nature and influence of the sector position insurers to model practices that emphasize responsible innovation."

Preparing for AI Regulation

AI regulation is still in its early stages, with different regions adopting various approaches. As AI becomes more prevalent, regulations will continue to develop. The report stresses the importance of insurers being involved in this regulatory evolution, leveraging their unique insights into risk management and regulatory compliance. As the adoption of AI accelerates, insurers have a unique opportunity to lead industries in developing and using AI in ways that are ethical, transparent, and trustworthy. With 90% of insurance organizations planning to invest in generative AI in the next year, now is the time for insurers to pioneer a forward-looking approach to AI governance.

A Call to Action

Triple-I and SAS are hosting a webinar on September 12 to discuss the report's findings and the future of ethical AI in the insurance industry. Industry leaders, including Jennifer Kyung from USAA and Iris Devriese from Munich Re, will offer insights into how P&C insurers can transform the sector with AI while ensuring it remains ethical and responsible. P&C insurers stand at a pivotal moment in the AI conversation. By taking a leadership role in ethical AI, they can help shape a future where AI benefits society while safeguarding against potential risks. For more information, download the full report and register for the webinar at iii.org/ethicalai.

The commercial insurance market may not be on the verge of lower premiums, despite recent speculation, according to Lloyd's of London chairman Bruce Carnegie-Brown. Speaking to Reuters on Thursday, Carnegie-Brown noted that the market is not yet seeing a significant decline in commercial insurance prices, even after a prolonged period of price hikes. This comes as Lloyd’s reports a 26% increase in first-half pre-tax profits, reflecting the industry's ability to weather economic pressures.

Why Prices Have Stayed High

Commercial insurers have faced numerous challenges over the past few years, including the global pandemic, geopolitical tensions, rising inflation, and increased losses due to natural disasters. In response, many insurers have raised prices and excluded high-risk areas of business. This combination of factors has kept insurance premiums high, even as some industry experts anticipate a potential market softening.

Insurance Prices Flattening, But Not Falling

While some in the industry believe that the peak of the market has been reached, Carnegie-Brown cautioned that any significant decrease in prices may not be imminent. "Some people are calling the top of the market and thinking that prices will come down," he said. However, he added that many insurance companies are not in strong enough financial positions to lower prices. This suggests that the ability to adjust premiums may remain limited in the near future.

Reinsurers to Play Key Role in Future Pricing

Reinsurers, who provide insurance to insurers, are set to meet next week in Monte Carlo to negotiate pricing agreements for 2025. These negotiations will likely impact commercial insurance prices, as insurers will decide whether to pass on any rate changes to their business clients. According to Fitch analyst Manuel Arrive, a "moderate softening" in property catastrophe reinsurance rates could be on the horizon for the January 1 renewal season. However, it remains to be seen how this will affect overall market conditions.

Lloyd’s Sees Profit Surge, But Stays Cautious

Lloyd’s has performed well in this challenging environment, with its pre-tax profit climbing to £4.9 billion ($6.44 billion) in the first half of the year. The organization’s members have strategically avoided riskier business lines, contributing to this profit boost. Gross written premiums also saw a 6.5% increase, reaching £30.6 billion. Additionally, Lloyd’s combined ratio—a key measure of profitability in underwriting—improved to 83.7%, compared to 85.2% last year. Despite these strong financial results, the broader market's outlook remains uncertain. As reinsurers and insurers gather to set the tone for 2025 pricing, the industry will be watching closely to determine how rates and profitability evolve.

What This Means for Insurance Agents

For insurance professionals, this news underscores the need to stay vigilant in tracking market trends. Commercial clients may be hoping for price relief, but agents should prepare them for the possibility that premium reductions might not happen as quickly or as significantly as anticipated. Understanding the dynamics between insurers and reinsurers will be critical in advising clients and navigating upcoming renewals. As the market continues to shift, staying informed will be key to helping clients manage their risk portfolios effectively.

In a joint whitepaper, Closing the Cyber Risk Protection Gap, Zurich Insurance Group and Marsh McLennan highlight the growing divide between increasing cyber threats and the current ability of both businesses and insurers to mitigate them. With cyberattacks now ranked as one of the top five global threats, the report underscores the urgent need for collaborative public-private efforts to address the looming crisis.

The Rising Tide of Cyber Threats

The world’s growing reliance on digital technologies, from remote working to cloud computing and emerging AI systems, has amplified both the benefits and risks of this digital transformation. Nearly 40% of experts surveyed in the World Economic Forum’s Global Risks Report 2024 identified cyberattacks as a “paramount risk,” with the potential to trigger a material crisis in the near future. Ransomware attacks alone reached a record $1.1 billion in payments last year, and this figure is projected to skyrocket. By 2027, the global cost of cybercrime could reach an astronomical $24 trillion, up from $8.5 trillion in 2022. In addition, non-malicious cyber incidents like the recent CrowdStrike outage show that cyber vulnerabilities extend far beyond criminal activities.

The Cyber Protection Gap: A Critical Issue for Businesses

While the cyber insurance market is rapidly growing—it was valued at $14 billion in 2022 and is expected to more than double by 2027—there remains a substantial gap between insured and actual economic losses from cyberattacks. The whitepaper estimates this “protection gap” at $0.9 trillion, leaving a significant portion of cyber risks unaddressed. Small and medium-sized businesses are particularly vulnerable, as many remain uninsured or underinsured against these threats. Zurich and Marsh McLennan argue that traditional insurance alone cannot bridge this gap, especially when it comes to large-scale, unquantifiable cyber risks.

Public-Private Partnerships: A Crucial Step Forward

The whitepaper calls for a public-private partnership model, similar to those used in managing risks associated with natural disasters, terrorism, and nuclear incidents. Governments can play a vital role by sharing data and providing frameworks to enhance cyber resilience. Examples include the U.S. Cybersecurity & Infrastructure Security Agency (CISA) and the EU’s Digital Operational Resilience Act, which require businesses to implement robust cybersecurity practices.

Implications for the Insurance Industry

For insurers, the rise of cyber threats presents both challenges and opportunities. While the cyber insurance market is expanding, insurers must find ways to close the protection gap by offering comprehensive solutions and helping businesses strengthen their defenses. Zurich and Marsh McLennan suggest several strategies:

• Simplifying insurance procurement: Making it easier for businesses, particularly small and medium-sized enterprises, to access cyber insurance.
• Building a common framework for data sharing: Insurers, brokers, and government agencies can aggregate and analyze cyber loss data to gain valuable insights.
• Incentivizing better cyber hygiene: Encouraging businesses to adopt best practices in cybersecurity through incentives rather than regulations.

Cyber Resilience: A Shared Responsibility

Zurich and Marsh McLennan stress that closing the cyber protection gap requires coordinated action across sectors. Insurers, governments, and businesses must work together to foster digital maturity, share best practices, and develop holistic insurance solutions that address both insurable and uninsurable risks. By building resilient frameworks and fostering stronger public-private partnerships, the insurance industry can play a key role in safeguarding both the economy and society from the escalating cyber threat landscape. The stakes are high, and the time for action is now.

Ryan Specialty Holdings (RYAN) has captured the attention of the insurance world with its strong financial performance and bullish stock pattern. The wholesale broker and managing underwriter has become a standout in the insurance-broker industry, offering a range of specialized services and products to brokers, agents, and carriers. With impressive profit growth and rising stock performance, Ryan Specialty is gearing up for its next big move as it approaches a crucial buy point.

Consistent Profit Growth Fuels Confidence

Ryan Specialty Holdings has demonstrated steady and significant profit growth. In the second quarter of 2024, the company's adjusted earnings grew by 29%, following impressive gains of 30% and 35% in the two previous quarters. With growth forecasts of 31% for the current quarter and 32% and 28% in subsequent periods, Ryan Specialty is clearly outperforming its peers in the insurance-broker industry. “We continue to be well positioned to deliver sustainable and differentiated profitable growth,” remarked CEO Patrick Ryan. The company also announced that President Tim Turner will succeed Ryan as CEO in October, signaling leadership continuity amid its rapid growth.

Strong Revenue Growth and Market Performance

Revenue growth has also been robust for Ryan Specialty, with second-quarter revenue increasing by 19%. The company has maintained an average growth rate of 20% over the past five quarters, and estimates show sales will increase by 19% to 23% over the next four quarters. This momentum has positioned Ryan Specialty as a top performer in the insurance-broker industry, ranked No. 1 in Investor’s Business Daily's (IBD) group ratings. The company's stock has been gaining strength, with shares climbing 49% this year. Ryan Specialty’s stock is forming a bullish chart pattern, indicating further growth potential. The stock is currently in a stage-one ascending base with a 69.03 buy point. Shares have seen a positive reaction to earnings reports, surging nearly 10% after its second-quarter results and reaching a record high.

Institutional Support and Future Outlook

Ryan Specialty's stock is receiving significant institutional support, with mutual funds holding 63% of shares and management owning 14%. The stock boasts a 99 IBD Composite Rating, indicating superior growth metrics, and its Earnings Per Share Rating stands at 98. With institutional backing and strong leadership, Ryan Specialty is positioned to remain a market leader in the insurance sector. As the company continues to innovate and expand its services, investors and industry experts are closely watching its next move. With projected full-year profit growth of 30% for 2024 and 21% for 2025, Ryan Specialty is well-poised to continue leading the charge in the competitive insurance-broker market.

NFP, an Aon company and leading property and casualty (P&C) broker, benefits consultant, wealth manager and retirement plan advisor, has announced the acquisition of Scott Litman Insurance Agency (SLIA), a P&C insurance broker specializing in habitational risk located in Calabasas, California. Scott Litman, president of SLIA, will join NFP as a senior vice president and report to Ed Kurowski, managing director, West region P&C. “We’re thrilled to welcome Scott Litman Insurance Agency to NFP,” said Kurowski. “Scott and his team have built an impressive book of commercial habitational risk business in Southern California with a focus on building long-term relationships, delivering effective risk management solutions and providing excellent client service. We look forward to their impact on the growth of our P&C business in this key market while creating opportunities for the team to introduce new capabilities to clients.” For nearly three decades, SLIA has offered P&C insurance and education to clients with a specialized focus on commercial habitational risk in the Los Angeles area. The SLIA team serves Southern California homeowners’ associations, as well as property management companies, boards of directors, and landlords associated with mid- to large-sized properties. “As part of NFP, our team can access expanded expertise and capabilities across NFP, which will add tremendous value to the wide-ranging needs of our clients,” said Litman. “With shared values and a commitment to advancing an already outstanding culture, we’re excited to help drive NFP’s growth in the habitational risk space and the greater Los Angeles area.” About NFP NFP, an Aon company, is an organization of consultative advisors and problem solvers helping companies and individuals address their most significant risk and workforce challenges. We are more than 7,700 colleagues in the US, Puerto Rico, Canada, UK and Ireland serving a diversity of clients, industries and communities. Our global capabilities, specialized expertise and customized solutions span property and casualty insurance and benefits. Together, we put people first, prioritize partnerships and continuously advance a culture we’re proud of.

Life Insurance Awareness Month is the perfect time to consider the impact of life insurance. As featured on The Balancing Act, our CEO Lisa Bickus highlighted how 1891 Financial Life provides not only life insurance but also supports communities and makes a meaningful difference 🏡❤️ Watch it here! https://youtu.be/NwPuZ_PyanY?si=86nyORaiPiRxLTXU  

Arrowhead General Insurance Agency, Inc. is pleased to announce its new carrier relationship with DB Insurance Company. Together we have introduced a new admitted homeowner’s program in the state of New Jersey. DB Insurance Company has been in business since 1962, getting their start in their home country of South Korea. They began writing business in the United States in 2006. DB is highly rated by A.M Best, having a financial strength rating of A+ (Superior) and holds an A+ (Stable) rating by S&P. “DB Insurance it excited to be working with Arrowhead General to offer a new homeowners program to the state of New Jersey” said Nathan Kim, general manager – New York branch. Arrowhead has distributed homeowners insurance in New Jersey since 2000. “We are excited to partner with DB Insurance Company to bring an admitted, A+ rated capacity to New Jersey and to also resume writing property business in the state,” said Mark Corey, president of Arrowhead’s Personal Property Program. You can visit the Arrowhead General Insurance Agency storefront or find additional information below. The homeowner’s program is available for dwellings located throughout New Jersey. For agency appointments and additional information, please contact Lauri Thum at 760-710-6827 or lthum@arrowheadgrp.com  or visit our website, https://www.arrowheadgrp.com/products/personal-property/

About Arrowhead General Insurance Agency, Inc.

Headquartered in San Diego, Arrowhead General is one of the largest national insurance program managers for commercial and personal products in the U.S., with a $2.1 billion written premium in 2023. Arrowhead's relationships with over 20 top-ranked insurance carriers provide stability for its nationwide network of agents. Arrowhead is part of Arrowhead Programs, a division of Brown & Brown Inc. (NYSE: BRO).

USG Insurance Services, Inc., a leading national wholesaler and MGA, is thrilled to welcome Tara Gudenkauf to their Georgia team as a new Producer/Broker. With an impressive 20 years in the E&S insurance industry and a remarkable 38 years overall in commercial insurance, Gudenkauf is a powerhouse in the field. In her previous roles, Gudenkauf demonstrated exceptional drive and success across a wide range of areas, including Commercial, Professional, Workers’ Compensation, Transportation/Garage, and Personal Lines. USG is eager to harness Gudenkauf’s passion for collaboration, communication, and innovation, and anticipates great achievements as she brings her expertise and enthusiasm to the 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. 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. CONTACT INFORMATION: TARA GUDENKAUF Producer/Broker: Commercial Lines d: 470.579.5466 e: tgudenkauf@usgins.com  

ReSource Pro, a leading strategic operations partner to insurance organizations, successfully completed its acquisition of Lowry & Associates, Inc. (Lowry) today.  With over thirty-five years serving the insurance industry, Lowry is a leading independent premium audit and underwriting survey solutions provider that serves many of the largest and fastest growing carriers and MGAs in the insurance space.

“This acquisition expands ReSource Pro’s capabilities across the commercial P&C insurance space,” said ReSource Pro CEO Dan Epstein. “We are very excited about what this combination means for our customers.  Together, we will bring a holistic solution to exposure management challenges faced by commercial P&C carriers and MGAs.  Accurate and timely premium audit and underwriting surveys are essential to profitable underwriting.”

Lowry has grown rapidly to become a leading audit and survey provider, helping carriers meet policy holder services requirements for more than 35 years.  Through their unique proprietary training program, Lowry has developed hundreds of experts who support insurance companies throughout the United States.

“Our team is thrilled to join ReSource Pro, they bring a breadth and scale that will be meaningful to Lowry customers as we continue to scale and support them in the future,” said Fred Lowry Jr., President, Lowry & Associates, Inc.  “We're happy to join forces with a company that not only shares our core values but also embodies the same dedication to innovation and excellence. This is a natural alignment of our missions, and together, we’ll create even greater impact for our clients and teams."

Historically, premium audit and underwriting surveys have been functions with limited technology support.  By acquiring Lowry, ReSource Pro aims to overcome this challenge by weaving together the best of both companies in terms of insurance knowledge, operational efficiency, technology enablement, and customer service.

The announcement comes at a time of increased recognition and growth for ReSource Pro.  Earlier this year, ReSource Pro became the only company representing the insurance industry to make the Inc 5000 list of fastest growing companies 15 times. The company recently opened its first European delivery location and continues to diversify and expand its global service offerings.

About ReSource Pro

Focused exclusively on the insurance industry, ReSource Pro is a trusted strategic operations partner to insurance organizations seeking to increase their productivity and profitability. With a global team of more than 10,000 employees, ReSource Pro operates at the critical intersection of people, process, technology, and data to serve more than 1,800 clients across the carrier, broker, and MGA segments – consistently earning a +96% client retention rate for over a decade. It offers expert advisory services, proven business process management optimization and transformative data and technology solutions. It was recognized in 2024 by Inc. 5000 as one of the fastest growing companies in the US.

Morgan Partners acted as the sole financial advisor to Lowry & Associates

A recent survey by NEXT Insurance reveals that a staggering 96% of small business owners lack basic insurance knowledge, with nearly 30% carrying no insurance at all. This leaves many vulnerable to significant risks, as they navigate an increasingly volatile business environment.

Top Concerns for Small Businesses

Inflation remains the primary stressor, with 68% of owners citing it as a major concern. Other significant worries include reduced customer spending, supply chain issues, and labor shortages.

Inadequate Coverage and Growing Risks

Despite acknowledging risks like professional mistakes and cyberattacks, many business owners are underinsured. Only 10% have cyber liability coverage, and 29% of respondents don't have any business insurance.

Moving Forward: Steps Toward Better Protection

Encouragingly, over 80% of small business owners plan to reassess their coverage in the coming months. However, only a third intend to seek professional help, which could be crucial in ensuring they are adequately protected against future risks.

Conclusion

The survey highlights a critical gap in insurance knowledge and coverage among small business owners, underlining the need for increased education and professional guidance in the industry.