The Centers for Medicare and Medicaid Services (CMS) has proposed new regulations requiring insurance agents and brokers to provide more detailed information to beneficiaries about Medicare Advantage plans. This initiative, referred to as "Informed Enrollment," seeks to ensure that Medicare beneficiaries fully understand the practical limitations of switching plans before making enrollment decisions.

Current Rules vs. Practical Realities

Under existing Medicare rules, beneficiaries have several opportunities to switch plans. Each year during the open enrollment period, from October 15 to December 7, beneficiaries can change their Medicare Advantage plans or move between Medicare Advantage and original Medicare. However, while these options are legally permitted, practical challenges often make these transitions more difficult than they appear. One major issue lies in the guaranteed-issue protections for Medigap policies—private insurance plans that cover out-of-pocket expenses not included in original Medicare. During a beneficiary's initial enrollment period, insurers are required to offer Medigap policies to all applicants without considering their medical history or pre-existing conditions. However, after this initial period, these protections are largely unavailable in most states.

Medigap Access After Initial Enrollment

After the initial enrollment period, insurers in many states can deny Medigap coverage or charge higher premiums based on an applicant’s health history. Only four states—Connecticut, Massachusetts, New York, and Maine—offer continuous or recurring guaranteed-issue protections. Other states provide limited protections under specific circumstances, such as changes in employer-provided retiree health benefits or during a trial period for Medicare Advantage plans. This lack of guaranteed access to Medigap policies creates financial risks for beneficiaries considering a switch from Medicare Advantage to original Medicare. Without a Medigap policy, beneficiaries may face significant out-of-pocket expenses, including the 20% coinsurance required for most Part B services.

The CMS Proposal: Emphasizing Transparency

The proposed CMS regulations would require agents and brokers to clearly explain these limitations to beneficiaries enrolling in Medicare Advantage plans for the first time. This includes informing beneficiaries about their one-time guaranteed-issue rights under federal law when enrolling in original Medicare. By highlighting these practical challenges upfront, CMS aims to ensure beneficiaries make more informed decisions about their healthcare coverage.

Implications for Beneficiaries

The proposal underscores the importance of understanding not only the legal rights surrounding Medicare enrollment but also the practical implications. While Medicare Advantage plans may appeal to beneficiaries for their lower initial costs and additional benefits, the inability to secure a Medigap policy later could result in significant financial burdens for those who wish to switch to original Medicare.

What Comes Next?

As CMS considers public feedback on the proposed regulations, beneficiaries and advocates alike are watching closely. If implemented, these changes could reshape how insurance agents approach Medicare Advantage plan enrollment and help beneficiaries better navigate their healthcare options. This initiative reflects CMS’s ongoing efforts to enhance consumer protections and ensure that Medicare beneficiaries have the information they need to make decisions that align with their long-term health and financial well-being.

As healthcare costs continue to rise, employers in the U.S. are navigating a challenging landscape of increasing expenses, evolving employee expectations, and the need to remain competitive in attracting and retaining talent. Insights from Aon’s 2025 U.S. Health Survey shed light on how organizations of all sizes are addressing these pressures.

Healthcare Costs on the Rise

Employers are bracing for a 9.2% average increase in healthcare costs for 2025, up from 8% in 2024. While larger employers anticipate a slightly lower increase of 8.3%, small businesses face steeper challenges with an average increase of 10.3%. Adjustments in plan designs are projected to moderate these increases to 7.3% overall, though smaller companies still bear a heavier burden compared to their larger counterparts.

Strategies to Address Rising Costs

To manage escalating costs, four out of five employers plan to increase employee contributions to health insurance premiums, with an average hike of 5.9%. Interestingly, small businesses are limiting these increases more than mid-sized firms, possibly to remain competitive in attracting talent. Beyond raising contributions, employers are deploying a range of cost-containment measures:

• Pharmacy strategies, particularly targeting costly diabetes and obesity management drugs like GLP-1s, are being implemented by 32.4% of employers. These include requiring prior authorization, step therapy, and limiting refill quantities.
• Plan design changes, such as higher deductibles and co-insurance amounts, are another widespread approach, affecting employees’ out-of-pocket costs.
• Vendor strategies focus on consolidating services and negotiating better terms.
• Member support and wellbeing programs aim to improve employee health outcomes while managing costs effectively.

Well-being Takes Center Stage

Wellbeing strategies are gaining prominence as employers recognize their dual role in improving employee health and enhancing organizational performance. From expanding employee assistance programs (EAPs) to introducing financial wellbeing initiatives, these measures are particularly prevalent among larger organizations with the resources to implement them. Mental health, in particular, has emerged as a key focus area, driven by increasing awareness and demand from younger workforce segments. Employers are responding by expanding emotional support programs, even as provider shortages push costs higher.

The Complexities of Smaller Employers

Small businesses, often lacking the resources of their larger counterparts, face unique challenges. While 25% of small employers are making no changes to their plans — more than double the overall number — those that do act are taking targeted steps to mitigate employee costs. This cautious approach underscores the delicate balance they must maintain between cost control and employee retention.

Crafting Benefits for the Future

Employers are not passive observers in the face of rising costs. By embracing innovative strategies — from using data to refine plan designs to promoting high-quality, cost-effective care — organizations are tailoring their benefits to reflect their values and meet employee needs. Wellbeing programs, in particular, represent a shift from being viewed solely as health initiatives to becoming critical components of business strategy. The road ahead for U.S. benefits is undeniably challenging, but it also offers opportunities for employers to innovate and lead. Through strategic planning and a focus on holistic employee support, companies can navigate this complex terrain while ensuring their workforce receives meaningful and sustainable benefits.

The U.S. commercial property insurance sector is showing signs of stabilization after years of consistent rate increases, according to a new report from the Insurance Information Institute (Triple-I). The updated analysis highlights that, for the first time since 2017, commercial property insurance rates decreased, with rates shifting from a 3.4% increase in Q1 2024 to a 0.94% decrease in Q2 2024, based on AON’s latest market data. Despite ongoing challenges such as inflation and climate-related risks, the report emphasizes strong underwriting performance and improved investment returns as pivotal for sustaining profitability in the sector. “Increasing climate and catastrophe risk, particularly secondary perils, drive losses,” said Dale Porfilio, Chief Insurance Officer at Triple-I.

Climate Risks and Catastrophe Losses

The 2024 Atlantic hurricane season added complexity to the market, with insured losses from tropical cyclones reaching an estimated $51 billion. Hurricanes Milton and Helene alone accounted for 80% of these losses, at approximately $25 billion and $16 billion, respectively. However, total insured losses for 2024 slightly decreased compared to the previous three hurricane seasons. Reinsurance capacity remains sufficient, but the market’s competitiveness in 2025 will be crucial, given the sustained frequency of catastrophic events.

Challenges of Undervaluation

The report also underscores a concerning trend of undervaluation in commercial property coverage. A study by Kroll revealed that 90% of buildings appraised in 2020-2021 were underinsured, with 68% undervalued by 25% or more. This issue, combined with a downturn in commercial rents and the maturation of over $1 trillion in real estate loans in 2025, could add volatility to the market. “This vulnerability could ignite a shift in property insurance dynamics when claims exceed policy coverage,” said Porfilio. “Insurers must innovate and transform underwriting practices to address these evolving risks effectively.”

Industry Outlook

As insurers and policyholders navigate these challenges, the report predicts shifts in underwriting practices, policy structures, and relationships between insurers and commercial clients. The findings emphasize the need for comprehensive coverage options to mitigate the increasing complexity of risks in the commercial property market. For more insights, visit the Insurance Information Institute’s resources, which provide data-driven analysis to empower consumers and industry stakeholders.

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.