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May 1, 2025
Communities Reassess Infrastructure Plans Following FEMA Program Termination
The cancellation of the Federal Emergency Management Agency’s (FEMA) Building Resilient Infrastructure and Communities (BRIC) program has prompted local governments across the U.S. to re-evaluate infrastructure projects designed to reduce disaster risk and improve climate resilience.
Mount Pleasant’s Revitalization Plans Stalled
In Mount Pleasant, North Carolina, a $4 million federal grant was expected to help fund improvements to the town’s stormwater drainage and electrical infrastructure. These upgrades were part of a broader revitalization strategy that included investments in downtown development, such as the restoration of a historic theater.
Funding was anticipated through the Federal Emergency Management Agency’s (FEMA) Building Resilient Infrastructure and Communities (BRIC) program, which supports projects that help reduce risk from natural disasters and build long-term community resilience.
However, the recent elimination of BRIC halted the distribution of those funds.
“This is a generational set of infrastructure projects that would set us up for the next hundred years and it just — poof — went away,” said Erin Burris, assistant town manager of Mount Pleasant, located about 25 miles east of Charlotte.
Impact Reaches Nationwide
Mount Pleasant is one of many towns and cities affected by the program’s termination. FEMA’s decision rescinded approximately $3.6 billion in funding that had been allocated or expected by communities across the country.
The BRIC program was created in 2020 to help communities strengthen infrastructure and reduce the long-term risks and costs associated with natural disasters. Local governments, particularly in smaller or rural areas, used BRIC funding to support stormwater systems, energy grid improvements, and flood mitigation efforts, among other initiatives.
Federal Policy and Local Response
While FEMA has not issued a detailed public statement about the decision, the change aligns with recent public comments from President Donald Trump, who has questioned FEMA’s role and, at times, suggested reducing or eliminating the agency’s scope. The BRIC program itself was initially launched during his first term.
Local officials have said the timing of the change caught them off guard, particularly in communities where projects had advanced to planning or pre-construction phases.
Looking Ahead
As communities adjust their plans, many are exploring alternative funding sources or delaying projects indefinitely. The long-term impact of the BRIC program’s termination remains to be seen, particularly in areas with limited access to state or local infrastructure budgets.
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May 1, 2025
Understanding Derechos: The Powerful Straight-Line Storms That Can Rival Hurricanes
A derecho is a large, fast-moving complex of thunderstorms distinguished by straight-line winds, intense rain, and destruction that can span hundreds of miles in just a few hours. Though they might appear similar to regular thunderstorm clusters, derechos are defined by their scale, speed, and power.
The term originates from the Spanish word for “straight,” referencing the nature of their winds, unlike tornadoes, which derive their name from the Spanish word meaning “to turn.” This difference in wind behavior is a fundamental distinction between the two.
Defining Characteristics
In 2021, the Storm Prediction Center (SPC) updated the criteria for classifying a derecho:
- Must produce damaging, straight-line winds along a path at least 400 miles long and 60 miles wide
- Must include wind gusts of 58 mph or greater along most of its path
- Isolated gusts should reach at least 75 mph
These storms are often dubbed “inland hurricanes” because of their intense wind speeds and torrential rain, although their formation differs significantly from tropical systems.
The Danger of Derechos
Most of the damage caused by derechos stems from downbursts — powerful winds that blow outward from the storm, knocking over trees, power lines, and even structures in a straight path. Derechos can also bring:
- Large hail
- Flash flooding
- Isolated tornadoes
Due to their severity, it’s advised to prepare for a derecho in the same way one would prepare for a tornado.
April 29, 2025 Derecho Event
A recent derecho on April 29, 2025, caused widespread damage as it traveled through parts of Indiana, Ohio, Pennsylvania, and New York:
- Wind gusts:
- Latrobe, PA: 79 mph
- Pittsburgh Airport: 71 mph (third-highest on record at that location)
- Casualties: At least three deaths reported in Pennsylvania
- Power outages: Over 700,000 people left without electricity
This storm left a significant trail of destruction, especially in eastern Ohio and western Pennsylvania.
Historical derechos
June 29–30, 2012 – The “D.C. Derecho”
- Originated in Iowa and traveled nearly 800 miles to the Mid-Atlantic
- Resulted in approximately 20 fatalities, $3 billion in damage, and over 4 million power outages
- Captured national attention for its scope and ferocity
July 11–15, 1995
- Four separate derechos struck the northern U.S. within five days
- Caused nearly $1 billion in damages
How Derechos Form
According to AccuWeather Senior Meteorologist Dan Pydynowski, derechos often develop along the northern edge of a large heat dome, powered by a strong upper-level jet stream. This enhances storm strength and speed. However, not all derechos follow this pattern — as evidenced by the April 2025 event in the Northeast.
Derechos vs. Squall Lines
Although both involve thunderstorm lines, they are not the same:
- Squall lines:
- Typically form along cold fronts
- Can span over 1,000 miles
- May dissipate quickly or cause scattered severe weather
- Derechos:
- Sustain long-track wind damage
- Maintain high intensity over long distances
Global presence and aftermath
Though most common in North America, derechos have also been recorded in Europe. As these systems pass, temperatures can fluctuate — remaining steady, increasing due to heat, or dropping as cooler air arrives. In the aftermath, some areas may face extended power outages, heightening risks during subsequent heat waves.
Based on information from AccuWeather (Updated April 30, 2025, by Monica Danielle)
Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.
May 1, 2025
California’s First Fire-Resistant Neighborhood Highlights the Statewide Challenge Ahead
A new housing development in Escondido, Dixon Trail, is being marketed as the first “wildfire resilient neighborhood” in the United States. Built by national developer KB Home, the neighborhood features 64 homes constructed with fire-resistant materials and methods. Key elements include double-paned tempered glass windows, steel fencing that mimics wood, stucco shutters, and gravel perimeters.
According to CalMatters, each home in the development follows standards established by the Insurance Institute for Business & Home Safety, a nonprofit funded by the insurance industry. The Institute, which began issuing “wildfire prepared” designations in 2022, is expected to issue its first neighborhood-wide certification for this project.
Home Hardening Comes with Significant Costs
Retrofitting existing homes to meet wildfire resilience standards remains a major hurdle. Millions of Californians live in areas classified as wildfire-prone, and many homes were built before the 2008 wildfire-focused building codes were introduced. A 2024 report from Headwaters Economics estimated that the cost to harden a two-story home can range from $2,000 to over $100,000.
Insurance industry leaders describe these retrofits as “pre-disaster mitigation” efforts, with potential to reduce long-term replacement costs. However, the upfront expenses remain a barrier for widespread adoption.
California Launches Pilot Program to Retrofit At-Risk Communities
The California Wildfire Mitigation Program, launched in 2019, represents the state’s initial effort to retrofit homes at a neighborhood scale. The $117 million initiative, jointly managed by Cal Fire and the Governor’s Office of Emergency Services, has retrofitted 21 homes to date. Target areas include economically distressed and fire-prone regions such as Lake County and Dulzura.
Challenges to expansion include the cost and availability of materials, contractor expertise, permitting delays, wage requirements, and environmental regulations. Retrofits completed so far have ranged from $36,000 to $110,000 per home. The pilot program aims to complete work on 2,000 homes and inform future policy design.
Local Governments Pursue Independent Solutions
With no statewide hardening mandate currently in place, some cities and counties are developing their own initiatives. Marin County, for example, passed a local tax measure in 2020 to fund fire prevention programs. These include safety assessments, matching grants for home retrofits, and vegetation management.
Berkeley recently enacted regulations requiring homeowners in hillside areas to maintain a five-foot buffer around their houses—commonly known as “zone zero.” Enforcement will begin in 2026. Cal Fire is working to develop similar statewide regulations, which are expected to be finalized by the end of 2025.
Insurance Companies Influence Homeowner Decisions
The insurance market has played a significant role in motivating home hardening measures. Some companies have issued non-renewal notices or increased premiums unless homeowners implement specific fire-resistant upgrades.
A 2023 regulation requires insurers to offer discounts to homeowners making qualifying changes, although the process for applying and the actual savings vary. Some carriers have pulled out of the California market due to wildfire-related losses and regulatory challenges, limiting available options.
New Insurance Models Explore Risk-Based Incentives
Innovative insurance models are being piloted to reflect reduced fire risk. In one example, the Tahoe-Donner homeowners association received a 40% policy discount following years of forest thinning and brush clearing. The policy was underwritten by Globe Underwriting in London, with financial support from the Nature Conservancy.
Although the policy only applies to shared land, it demonstrates that insurers may respond favorably to proactive risk mitigation. Policymakers and advocates suggest that such approaches could help build public support for broader investments in fire resilience.
Legislative Proposals Under Review
Several bills are under consideration in the California Legislature. One proposes redirecting a portion of insurance tax revenues toward retrofit grants. Another would create a certification program for hardened homes, while a third seeks to establish a Community Hardening Commission to guide rulemaking.
The goal of these proposals is to expand access to retrofit funding, standardize requirements, and improve insurance availability for homeowners who invest in wildfire resilience.
Photo: KB Homes
Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com.
April 30, 2025
PLM Welcomes Two New Members to its Board of Directors

April 30, 2025
Alabama Legislature Adopts HJR220 to Stabilize Coastal Commercial Insurance Market
On April 24, 2025, the Alabama Legislature officially adopted House Joint Resolution 220 (HJR220), formally recognizing the challenges facing commercial property insurance along Alabama’s coastal regions. Originally introduced on April 8, 2025, the resolution addresses the instability and affordability issues impacting an area that contributes over $10 billion annually from tourism and supports nearly 100,000 tourism-related jobs.
HJR220 outlines several strategic measures aimed at stabilizing the coastal commercial insurance market, including:
- State reinsurance initiatives: Exploring programs like catastrophe bonds and risk-sharing agreements to distribute financial risk more broadly.
- Incentivizing risk reduction: Considering tax credits or grants for businesses implementing wind-resistant construction, fortified roofing, flood mitigation measures, and other risk-reduction practices.
- Enhanced oversight and transparency: Recommending that the Alabama Department of Insurance review insurer practices related to rate setting, claim denials, and policy nonrenewals.
- Wind pool coverage expansion: Assessing the possibility of expanding the Alabama Insurance Underwriting Association's Wind Pool coverage to enhance affordability and claims processing efficiency.
- Post-disaster economic support: Evaluating state-administered contingency funds or loan programs to assist businesses in rapid disaster recovery.
- Strengthened building standards: Encouraging stricter construction standards and resilient zoning policies in high-risk coastal areas.
- Continuing evaluation: Extending the Alabama Coastal Commercial Insurance Joint Interim Study Commission’s mandate to annually review market conditions, propose solutions, and engage stakeholders.
Insurers, businesses, and policymakers operating in coastal Alabama may experience:
- Adjustments to compliance standards related to new construction guidelines.
- Changes in underwriting and claims management practices.
- Enhanced regulatory oversight promotes transparency in insurance operations.
Following its adoption, HJR220 will guide actions taken by the Governor, the Alabama Department of Insurance, and other relevant stakeholders. The Legislature has committed to ongoing research and policy initiatives to protect the economic stability and insurance resilience critical to Alabama’s coastal communities.
Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.
April 30, 2025
Blue Shield of California Confirms Largest Health Care Data Breach of 2025
According to a recent report by TheStreet.com, Blue Shield of California has confirmed the largest health care data breach of 2025. The breach involved the unintended sharing of protected health information (PHI) due to a misconfigured implementation of Google Analytics.
Details of the Breach
On April 9, 2025, Blue Shield of California issued a notice stating that a misconfiguration in Google Analytics led to the potential exposure of patient data. The incident occurred between April 2021 and January 2024. During this period, certain PHI was shared with Google Ads and may have been used for targeted advertising.
The potentially exposed data includes:
- Names
- City and ZIP code
- Gender
- Family size
- Medical services information
- “Find a Doctor” search criteria and results
Blue Shield stated that no Social Security numbers, driver’s license numbers, or banking or credit card information were included in the breach.
Scope and Impact
Blue Shield did not confirm any individual instances of exposed data but is notifying all potentially affected users as a precaution. The company reported that 4.7 million patients may have been affected. According to TechCrunch, citing the U.S. Health Department, this is the largest health care-related data breach of the year.
Blue Shield said that no external bad actor was involved and that, to their knowledge, Google has not used the information for purposes other than targeted ads or shared it with third parties. The company advised members to monitor account statements and credit reports for suspicious activity.
Broader Context on Data Privacy
The TheStreet.com report also referenced broader concerns regarding digital privacy. In 2020, a class-action lawsuit was filed against Google alleging it collected data through tools like Google Analytics and Ad Manager, even in Chrome’s “Incognito” mode. In April 2024, Google settled the lawsuit by agreeing to delete billions of records and allow incognito users to block third-party cookies for the next five years.
Google spokesperson Jose Castaneda stated, “We never associate data with users when they use incognito mode,” and said the company was willing to delete old technical data that was not associated with individuals and not used for personalization.
Ongoing Concerns About Data Use
The TheStreet.com article noted additional context from previous years:
- In a 2018 SAS survey, 73% of respondents expressed increased concern about data privacy compared to previous years.
- A 2023 Pew Research Center report indicated that 71% of Americans were concerned about government use of personal data, up from 64% in 2019.
- The same report found that 77% of Americans lacked confidence in social media executives to admit mistakes and be accountable for data mishandling.
Related Incidents
The article referenced past concerns, including a reported remark by Facebook founder Mark Zuckerberg in leaked messages published by Business Insider, where he allegedly referred to early users as “dumb f*cks” for trusting him with their data.
According to HIPAA Journal, which cited data from the Department of Health and Human Services Office for Civil Rights, 2023 saw more health care data breaches than any year since 2009.
Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com.
April 29, 2025
Risk Strategies Releases State of the Insurance Market 2025 Outlook
Risk Strategies has officially released its much-anticipated State of the Insurance Market 2025 Outlook report, offering businesses and individuals critical insights into the evolving dynamics of the global insurance landscape. Published last week, the report draws on the expertise of Risk Strategies’ specialists across numerous industries and product lines, providing a deep dive into the challenges and opportunities ahead.
Key Highlights From the 2025 Outlook
The State of the Insurance Market 2025 report paints a complex but promising picture of the insurance environment. After several years of rising rates, stabilization is beginning to emerge in several lines, such as property, cyber, and management liability. However, some sectors — most notably casualty and homeowners — remain mired in a hard market. The employee benefits landscape also faces pressures, particularly from the ongoing rise in pharmacy costs.
Despite the complexities, Risk Strategies emphasizes that opportunities for innovation and strategic growth are abundant for those who stay agile, data-driven, and proactive.
Top Market Challenges
- Natural disasters: Climate-related events like wildfires, hurricanes, and floods continue to increase in severity and frequency, significantly impacting property insurers. The Los Angeles wildfires serve as a stark example of the growing risks.
- Social inflation: Escalating claims costs, fueled by nuclear verdicts and rising litigation expenses, are straining casualty and liability lines.
- Emerging risks: New technologies, especially artificial intelligence (AI), introduce fresh vulnerabilities, while geopolitical tensions add layers of uncertainty for global insurers.
- Regional variations: Although U.S. insurance rates are relatively flat overall, property lines reveal mixed trends, with some areas seeing rate relief and others, particularly catastrophe-prone regions, facing premium hikes.
Strategic Recommendations
Risk Strategies offers several essential recommendations for businesses and individuals looking to strengthen their resilience:
- Acknowledge systemic risk complexities: Understanding that risks can evolve over time and arise from both internal and external sources is vital for effective risk mitigation.
- Integrate insurance into strategic planning: Treat insurance as a core component of business strategy rather than a routine purchase.
- Align coverage with long-term goals: Evaluate insurance options that directly support your broader business objectives to ensure longevity and adaptability.
- Partner with a specialized insurance broker: Collaborating with a broker who has deep industry knowledge ensures tailored solutions and a stronger foundation for your organization.
Industries Covered in the 2025 Outlook
The report provides in-depth insights and projections across a wide range of industries, including:
- Agriculture
- Architects & Engineers
- Aviation
- Cannabis
- Dental
- Education
- Entertainment
- Fine Art
- Healthcare
- Law Firms
- Marine
- Nonprofit & Human Services
- Private Equity
- Real Estate
- Relocation
- Transportation
- Waste & Recycling
- Wineries

April 29, 2025
USG Announces Hire of William Morgan in Denver, CO


April 29, 2025
AAU Announces Hire of Kristine Pelletier in Kissimmee, FL


April 28, 2025
SAN Group Honors Top Member Agencies With 2025 Awards of Excellence
SAN President’s Club Award
The J. Williams Insurance Agency of Braintree, MA, received the distinguished SAN President’s Club Award—one of SAN Group’s highest honors. SAN President Larry Rose presented the award to agency principal Jonathan Williams in recognition of the agency’s exceptional growth, operational excellence, and overall achievement.Peak Performer Awards
Three agencies were recognized with Peak Performer Awards for achieving high profitability with SAN’s strategic partner carriers in 2024, coupled with strong business performance. This year’s recipients are:- Valentine Insurance Agency – Catskill, NY
- HMS Agency – Albany, NY
- Ell Insurance – Du Bois, PA
Mountain Climber Awards
The Mountain Climber Awards honor new agencies that achieved key premium milestones within their first 12 or 36 months of SAN membership.Mountain Climber Awards • 3-Year Achievement
- Koch Protect – Littleton, MA
- Kader Insurance Agency – East Berlin, CT
- ASK Insurance – Stratford, CT
- Wright Insurance Agency – South Yarmouth, MA
- Schiappa Insurance Agency – Cranston, RI
- L&Q Insurance Agency – Newton, MA
- LaFrance Insurance – Hopkinton, MA
Mountain Climber Awards • 1-Year Achievement
- Hilltown Insurance Agency – Oxford, MA
- The Answer Insurance Agency – Rochester, NY
- Safeshield Insurance – Stamford, CT
- MTZ Insurance – Methuen, MA
- Mo’s Insurance – Cheektowaga, NY

April 28, 2025
New Stanford Survey Reveals Californians’ Deep Concerns Over Home Insurance Crisis and Economy
A sweeping new survey from the Stanford Institute for Economic Policy Research (SIEPR) paints a vivid picture of Californians’ growing unease, not only about their ability to secure affordable home insurance but also about the broader economic outlook facing the Golden State.
Californians Sound Alarm on Home Insurance Challenges
Three months after the devastating Los Angeles-area wildfires, the SIEPR California Economic Survey (CES) finds that most residents are deeply worried about the shrinking availability and skyrocketing cost of home and property insurance. Importantly, they lay the blame primarily at the feet of insurance companies and government officials, rather than climate change alone.
Utility companies, seen as crucial players in wildfire prevention, also drew criticism for perceived inaction. Yet, while concern is high, consensus on solutions remains elusive: 56 percent of respondents support government subsidies to lower insurance costs in fire-prone areas, but only 41 percent of those would accept higher taxes or premiums to fund such measures.
“These survey results confirm that there is widespread concern around the ability of California property owners to protect themselves from the potentially devastating economic consequences of more frequent and intense natural disasters,” said Neale Mahoney, Trione Director at SIEPR and economics professor at Stanford.
Rising Anxiety Across Key Issues
The CES, which surveyed 1,735 Californians in March, shows that inflation and housing costs continue to dominate public concern. The destruction wrought by January’s wildfires also appears to have pushed climate change and environmental issues into the state’s top three worries, overtaking homelessness, which had ranked higher just months earlier.
Adding to the sense of unease, consumer confidence in California has sharply declined. The survey shows a 15 percent drop in sentiment from December 2024, reflecting growing fears about unemployment, inflation, and gas prices.
Meanwhile, on the national front, Californians are feeling the impact of newly imposed tariffs under President Donald Trump’s administration. Nearly 74 percent of those surveyed expect the tariffs to harm the average American, with 69 percent anticipating a direct personal financial hit.
No Easy Solutions in Sight
While it’s clear Californians want action to address the home insurance crisis, the survey underscores a major hurdle: a lack of agreement on how to fund potential remedies. Public willingness to pay higher costs to support insurance subsidies is limited, complicating efforts by policymakers to craft effective responses.
"California just became the world’s fourth-largest economy," noted Preeti Hehmeyer, managing director of SIEPR’s California Policy Research Initiative. "The state not only leads nationally — but globally — when it comes to policy challenges and solutions."
As California continues to wrestle with the consequences of natural disasters, economic strain, and complex policy decisions, the CES offers an important window into residents' priorities and expectations. The next survey results, due in June, are likely to shed further light on how opinions evolve as new challenges emerge.
Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.
April 28, 2025
Louisiana Bill Seeks to Limit Roofers’ Role in Insurance Claims
Louisiana lawmakers are moving forward with a controversial proposal that could significantly change how roofing contractors interact with homeowners after storms. House Bill 121, sponsored by Rep. Roy Daryl Adams (D-Jackson), aims to prohibit roofers from assisting customers with insurance claims — a practice lawmakers say leads to conflicts of interest and questionable business practices.
Key Changes Proposed
The bill, which unanimously cleared the House Committee on Insurance, would:
- Bar roofing contractors from providing, advertising, or soliciting insurance claims handling services.
- Prohibit the use of contingency contracts that hinge on insurance approval for roofing work.
- Prevent insurance adjusters from performing any construction work related to claims they manage.
Supporters of the bill, including insurance companies and lawmakers with industry ties, argue that it’s a necessary step to restore trust and lower coverage premiums. They express concern over roofers who canvass neighborhoods after storms, sometimes encouraging unnecessary claims or exaggerating damage to secure work.
Roofers Push Back
Not all are convinced the bill serves homeowners' best interests. Roofing industry professionals testified in opposition, warning that the measure could hurt legitimate contractors and leave homeowners at the mercy of insurance companies.
Josh Lovell, sales manager at Gator Roofing in Baton Rouge, highlighted that roofers often help guide homeowners through confusing claims processes. Without that assistance, homeowners might not realize they can dispute denied claims or seek second opinions.
“If we can’t even talk about any of the process, then you’re just giving all the power to the insurance company,” Lovell said.
Johnathan Davis, a board member of the Residential Roofing Association of Louisiana, emphasized that contingency contracts and insurance collaboration are integral to the roofing business. Davis warned the bill’s vague language could even criminalize sending an estimate to an insurance adjuster, creating legal risks for contractors simply doing their jobs.
Lawmakers Defend the Restrictions
Committee Chairman Gabe Firment (R-Pollock), who works as an insurance consultant, insisted that assisting with insurance claims is outside a contractor’s professional scope. He said allowing roofers to guide claims opens the door for fraudulent practices, with some contractors finding damage that doesn’t exist.
“I think we’ve got to get back to roofers being tradesmen and not salesmen,” Firment said.
Rep. Chance Henry (R-Crowley), an insurance agency owner, supported the bill by suggesting that homeowners hire licensed public adjusters to resolve insurance disputes — though critics countered that public adjusters are costly and could complicate claims.
Possible Revisions Ahead
Acknowledging the concerns from roofing professionals, Firment admitted the bill might need amendments to clarify its provisions. Lawmakers hinted at potential changes to ensure roofers could still perform basic services, like submitting estimates, without running afoul of the law.
As the bill moves to the House floor, the debate underscores the complex balance between consumer protection, industry regulation, and the rights of contractors and homeowners alike in Louisiana’s storm-battered communities.
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