USAA said it provided about $3.7 billion in financial rewards to its members this year, the highest total in the company's 103-year history, with its 14.2 million members receiving between $130 and $520 each. President and CEO Juan Andrade said USAA's risk management and claims handling contributed to the milestone, as did members' participation in loss-mitigation programs. "All of that helps, at the end of the day," Andrade said.

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A California appellate court held that the state FAIR Plan Association cannot be compelled to provide liability coverage in addition to basic property coverage. The decision, which overturns a trial court order, says that California law requires the FAIR Plan to provide only first-party property coverage and does not allow the state insurance commissioner to mandate liability coverage as well.

Fitch Ratings' fundamental outlook for the US property casualty insurance industry remains neutral for the year ahead, with a 2025 combined ratio projected to improve to 93.7%. The rating firm cited the sector's robust statutory performance, its favorable results in the personal auto segment and this year's mild hurricane season. "But macro risks -- including increasing competition, geopolitical uncertainty, slowing economic growth and a difficult legal environment -- could pose challenges for pricing discipline, reserve adequacy and claims management," said Tana Marcom, senior director at Fitch.

Insurance and risk professionals are raising concerns about the legal and operational threats associated with AI-powered voice cloning. "What we're finding is that our insureds aren't necessarily prepared, so they may not have the quality controls in place to mitigate this exposure," said Erlisa King of Tokio Marine HCC. Claims involving AI voice cloning have been limited thus far, but insurers are adapting coverage offerings and expect an increase in litigation as the technology gains traction, King says.

The market for insurance-linked securities could bring in $10 billion to $20 billion of new capital next year as institutional investors seek diversification into alternative assets, said Michael Millette of Hudson Structured Capital Management. Catastrophe bonds are poised to maintain a larger proportion of the inflows than collateralized reinsurance does, Millette said, also noting rising interest in cyberrisks and casualty ILS.

This year's Atlantic hurricane season saw 60% of hurricanes reaching Category 5 strength, marking a record high, said Sam Phibbs, head of catastrophe research at MS Amlin. "This aligns with projections that climate change is pushing more storms towards extreme intensity, and potentially devastating consequences if they make landfall," Phibbs said, adding, "There is a compelling case for stronger building codes across the Northeast and mid-Atlantic, bringing standards in line with hurricane-prone states such as Florida and Louisiana."

The first of two atmospheric rivers forecast to hit the Pacific Northwest this week has moved inland, while the second is forecast to arrive overnight. The storms pose a flood risk as streams and rivers in parts of the region are at near-record-high levels, and AccuWeather warns that flooding and mudslide risk could lead to evacuation orders in some areas.

Ransomware incidents reached a record high in 2023, with over 1,500 incidents and $1.1 billion in payments, according to the Financial Crimes Enforcement Network. However, the number of incidents declined to 1,476 and payments dropped to $734 million in 2024 following law enforcement actions against AlphV/BlackCat and LockBit. The manufacturing, financial services and health care sectors were most affected by ransomware.