3 Things – Weather Challenges, Strategic Moves & MSIG NA / Amwins Partnership

Hello Friends!  We are back after a mid-year hiatus following weather challenges and personal lines shake ups, strategic moves from established carriers and startups and a powerful partnership with a growing North American insurer.  Here are the three things we learned:


Weather Challenges and Market Conditions Continue to Shake Personal Lines

Several developments this week highlight the persistent headwinds faced by personal lines insurers, driven by the familiar culprits of rising inflation and severe weather events. Joining the growing list of carriers stepping back from personal lines coverage in Florida and California, Farmers Insurance recently made a notable exit. The move drew criticism from a Florida regulator, who remarked that this decision demonstrated a lack of focus on running a successful business, dubbing Farmers as the “Bud Light of insurance.” Meanwhile, Progressive Insurance faced a worrisome trend as their combined ratio continued to climb in the wrong direction. In June alone, they reported a negative combined ratio of 104.9% upsetting everyone in Mayfield Hts, OH.  June results also showed a slowdown in growth, necessitating efforts to regain profitability. Liberty Mutual announced strategic changes to operate ‘in a world of profound and accelerating change’. Their approach involved optimizing their product portfolio and global footprint while investing in new and innovative capabilities. Amidst these industry shifts, headlines persistently capture the impact of heatwaves, floods, and other extreme weather events, exacerbating the frequency of natural disasters. However, there is a glimmer of hope as economic news brings some relief, with inflation rates dropping to 3%. Personal lines insurers eagerly anticipate the potential decrease in loss costs that may accompany this positive development.


Strategic Moves: Rebranding, IPO Ambitions, and New Market Opportunities

In the ever-evolving insurance landscape, Acrisure, a major player eyeing an initial public offering (IPO), recently unveiled the rebranding of their Western businesses. This strategic decision prompts intriguing questions: Is this an effort to streamline operations and bolster their valuation? Could it also be a proactive measure to address potential antitrust concerns as they navigate the public domain? Additionally, Sigo Seguros, meaning “I’m still safe” in English, has raised seed funding, targeting the underserved immigrant and working-class communities with their auto insurance offerings. Recognizing the immense potential within this customer segment, Sigo Seguros aims to provide crucial financial protection. Meanwhile, Nationwide, who based on recent news is thought to be pivoting away from P&C insurance, surprised the market by announcing a promising partnership with Hourly.io—an MGU specializing in worker’s compensation for hourly and mobile workers. This collaboration integrates directly with payroll providers, enhancing premium audit functionality and ensuring more accurate premium pricing. Notably, it empowers small businesses with improved cash flow control related to their insurance spending.


MSIG NA and Amwins Forge Powerful Partnership

MSIG NA’s strategic partnership with Amwins continues to solidify its presence and generate ripples in the industry. By aligning themselves with Amwins, the prominent independent wholesale distributor of specialty insurance products and services in the U.S., MSIG NA secures a significant distribution partner to place their capacity for over 20 Amwins underwriting programs. This collaboration is a big move by MSIG NA as they actively seek to expand their footprint in the highly opportunistic U.S. market. The partnership with Amwins, a major wholesaler, offers a perfect match for efficiently underwriting and achieving substantial premium growth. This mutually beneficial alliance is expected to strengthen the balance sheets of both companies as they proactively prepare for the future. With substantial resources at their disposal, MSIG NA strategically selects opportunities to deploy their ample “dry powder” in the market. Their prudent approach ensures that they place their bets wisely, maximizing their chances of success and market penetration.

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