Top National Insurance Journal Stories of 2023

December 29, 2023 by

Auto insurers again in 2023 had a lot of trouble battling several headwinds preventing them from turning a profit. The topic was one of many in which readers of Insurance Journal kept a close eye.

Other than the trials of tribulations – which are more than likely to last throughout 2024 – within the auto insurance business, insurers also took steps to adjust their property books of business. Readers also regularly clicked on stories related to the workplace. In 2023, layoffs were a hot topic, as was the fact company executives changed the rules about employees’ presence in the office.

Artificial intelligence, significant Supreme Court rulings, cyberattacks and new regulations, an incident at an industry conference, and a CMO stealing millions of dollars from his employer all earned your attention in 2023.

The headline is just one of the latest, but the struggle within the auto insurance industry was of prominence throughout the year. Historically stable, the personal auto line has continued to fall victim to inflation-driven elevated claim severity from accidents, litigation and weather. This has led to significant rate increases from auto insurers. Well, they are at least asking regulators for permission to hike rates – which can take a bit of time to get approved and move through the book. It has therefore taken longer for many insurers to reverse rotten underwriting results. However, Allstate ended the year with approvals to increase rates in three problem states.

The homeowners insurance line of business in 2023 took a hit as well, and in September AM Best downgraded the segment due to above-average numbers of natural catastrophes, inflationary pressures and elevated reinsurance costs. Maintaining rate adequacy has been a challenge, leading some insurers to take drastic steps, like restricting new business in certain states. AM Best’s outlook on U.S. personal lines is negative.

We chose this popular headline because it included two big 2023 topics: layoffs and adjustments to work-from-home arrangements. American Family Insurance this year confirmed staff reductions, and Farmers Insurance announced that it would let go 11% of its workforce. Liberty Mutual announced some job cuts due to organizational changes. Insurtechs were not immune: Hippo laid off 20%, and Branch Insurance, Corvus Insurance and Pie Insurance also announced layoffs in 2023. In the meantime, more employees were told to come to work more often. Farmers CEO Raul Vargas told workers mid-year that the insurer would institute a hybrid work schedule.

When the news of this ruling came down, it did not necessarily get a bunch of clicks (though it does include an insurance-coverage dispute) because it did not directly affect businesses. However, the ripple effect the anti-affirmative action decision caused has touched companies’ diversity, equity and inclusion initiatives as well as directors & officers – and likely will continue to do so. Corporations were described as “frozen by uncertainty.” And, it did not take long for groups like the American Alliance for Equal Rights and American First Legal to go after companies for discrimination, with some success. Hiring practices, training, and efforts to close the gender pay gap could all be targeted. James Felton Keith, CEO of InclusionScore, said, “Insurers have to be engaged because they are going to pay the bills.”

Our Elizabeth Blosfield held a podcast to try and figure out the U.S. Securities and Exchange Commission’s new cyber disclosure rules requiring companies to report “material” cyber incidents within four business days – among other things. The rules started Dec. 18 as the SEC attempts to grow teeth for its regulation bite while trying to enhance reporting standards. Many companies and their insurers wonder what the effect will be on the cyber and D&O landscape as they figure out compliance best practices. They may have been given a hint late this year with the SEC’s suit against SolarWinds.

Well that escalated quickly. As the year progressed, artificial intelligence got hotter and hotter as a topic – including this story related to industry job losses. Yes, AI has the potential to be a powerful tool for a great number of tasks. But, as society worldwide tries to understand and regulate its use, AI clearly carries risk and has been the subject of various litigation brought by artists, authors and the media. Researchers issued a paper to promote safety and ethical AI use.

Two victims of a recent 23andMe data breach have filed a class action lawsuit, alleging negligence, invasion of privacy, unjust enrichment, and breach of implied contract. 23andMe Holding Co., a genetics test kit company that offers ancestry and health reports, said nearly 7 million customers had data compromised after an anonymous hacker accessed user profiles and posted them for sale on the internet.

Bob Rusbuldt was set to retire as chief executive of the Independent Insurance Agents and Brokers of America at year end but that process was fast-tracked after an interview he conducted with Fox News host Jesse Watters at an April conference. “While a difficult decision, it was necessary,” said the association’s chairman in a video statement.

This was the end of a year-long story primed for the inclusion in a newsmagazine TV episode. Insurtech Root hires a new chief marketing officer. Over the course of his year-long employment, he embezzles more than $10 million meant for ad campaigns and uses it on luxury homes, vacations, cars, watches, and an amphibious airplane.

Social media is fun, ain’t it? Not when influencers make obvious how easy it is to steal Hyundais and Kias. The info prompted some insurers to limit their appetite for the vehicles. Hyundai and Kia offered a software upgrade to prevent thefts but the car manufacturers are going to have to face insurers looking to recoup over $1 billion.

See Top Stories From Each Region:

Popular Today