The federal Internal Revenue Service listed microcaptive insurance programs on its 2024 "Dirty Dozen" list of 12 tax scams, saying the programs can prove to be bogus tax avoidance strategies. The IRS has prevailed in multiple recent tax court cases involving the arrangements and last year moved to place more regulatory oversight on them. The agency in the past has argued they don't provide insurance and allow entities to make improperly tax deductions. "Abusive microcaptives involve schemes that lack many of the attributes of legitimate insurance," the IRS said. "These structures often include implausible risks, failure to match genuine business needs, and in many cases, unnecessary duplication of the taxpayer’s commercial coverages." Premiums paid under the microcaptive arrangements are often excessive and reflecting pricing that isn't "arm’s length," the IRS said. The agency reaffirmed abusive microcaptive transactions are a high-priority enforcement area for the IRS, and it has won all Tax Court and appellate court cases involving them that have been decided on their merits since 2017. “Taxpayers should be wary of anything that seeks to completely eliminate a legitimate tax responsibility,” said IRS Commissioner Danny Werfel in a statement. “Promoters continue to peddle elaborate schemes to reduce taxes and make a handsome profit. Taxpayers contemplating these arrangements should always seek advice from a trusted tax professional, not an aggressive promoter focused on pushing questionable transactions to make a buck.” The IRS has released the Dirty Dozen list annually since 2022, highlighting scams that put taxpayers, businesses and the tax professional community at risk of losing money, personal information, data and more, the agency said. Along with microcaptives, the final installment on the list included syndicate conservation easements, which allow property owners to report a deduction in exchange for limiting land use. Last month, the IRS won another round of legal wrangling over a dispute with a microcaptive owner's tax payments for a number of years. Sunil Patel's businesses supplemented their commercial insurance coverage by purchasing assorted policies from two microcaptive insurance companies that Patel controlled, Magellan Insurance Co., domiciled in St. Kitts, and Plymouth Insurance Co., domiciled in Tennessee. According to the decision, the premiums paid to the microcaptives were substantially more than the premiums paid to  Patel's commercial insurers, creating substantial tax benefits for the couple.

Travelers has published its first quarter 2024 financial results, reporting 16% growth in net income despite an elevated level of catastrophe losses compared to the prior year quarter. The insurer saw its net income rise to $1.123 billion in Q1 2024, a figure that compares to the $975 million reported in Q1 2023. Core income also increased, to $1.096 billion from $970 million in the same quarter last year. According to the insurer, the increase in core income was mainly due to higher net investment income and a higher underlying underwriting gain, which was partially offset by higher catastrophe losses. The underlying underwriting gain was higher than in the prior year quarter, notwithstanding that the prior year quarter included a $211 million one-time tax benefit. Net realized investment gains in the current quarter were $35 million pre-tax ($27 million after-tax), compared to $6 million pre-tax ($5 million after-tax) in Q1 2023. Q1 2024 included an elevated level of catastrophe losses of $712 million pre-tax, compared to $535 million pre-tax in the prior year quarter. These quarters cat losses primarily resulted from severe wind and hail storms in the central and eastern regions of the United States, Travelers noted. It is worth noting that, while this quarter’s cat losses are elevated, given the $3.5 billion attachment point of its main per-occurrence cat XoL treaty, these events are not the type of losses that would trigger Travelers’ reinsurance. But it does highlight how higher reinsurance attachment points, and a move away from frequency events by reinsurers, is resulting in the primary market retaining more of these types of losses. Despite the rise in cat losses, the insurer’s combined ratio improved 1.5 points, to 93.9%, due to an improvement in the underlying combined ratio (2.9 points), partially offset by higher catastrophe losses (1.1 points) and lower net favorable prior year reserve development (0.3 points). Underlying combined ratio also saw an improvement, going from 90.6% in Q1 2023 to 87.7% in Q1 2024. Travelers also reported net written premiums of $10.18 million in this year’s first quarter, an 8% increase compared to the $9.39 million reported in the same period last year. The firm’s Business Insurance segment saw an increase in income of $8 million, to $764 million after-tax. This was mainly due to higher net investment income, partially offset by a lower underlying underwriting gain. Its combined ratio improved to 93.3% due to a lower underlying combined ratio (0.4 points) and lower catastrophe losses (0.3 points), partially offset by no net prior year reserve development compared with net favorable prior year reserve development in the prior year quarter (0.4 points). The segment’s underlying combined ratio improved 0.4 points to a very strong 89.2%. Net written premiums increased to $5.596 billion, reflecting strong renewal premium change (10.6%) and retention (86%), as well as higher levels of new business, the insurer noted. Segment income for Bond & Specialty Insurance was $195 million after-tax, a decrease of $12 million, primarily due to lower net favorable prior year reserve development, partially offset by higher net investment income. Combined ratio improved to 84.5% and underlying combined ratio to 86.5%. The segment’s net written premiums of $943 million increased 6%, reflecting strong production in both surety and management liability. Travelers Personal Insurance segment also saw an increase in income, to $220 million after-tax. This was due to a higher underlying underwriting gain, higher net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. The combined ratio improved to 96.9%, as well as the underlying combined ratio of 86.1%. Net written premiums of $3.643 billion increased 9%, reflecting strong renewal premium change in both Domestic Automobile (16.6%) and Homeowners and Other (13.4%). Alan Schnitzer, Chairman and Chief Executive Officer, commented: “The year is off to a terrific start with strong profitability and production in all three segments, as well as higher investment income. In short, we’re firing on all cylinders. We also continue to invest in important strategic initiatives. “We have demonstrated success in executing our innovation strategy, which has contributed to superior returns with industry-low volatility, growth in our premium base and higher adjusted book value per share. With this momentum and the best talent in the industry, we remain well positioned for success this year and beyond.

MGM Resorts International sued the Federal Trade Commission to stop an investigation into how it dealt with a cybersecurity attack last year. The company said the investigation deprives it of its fundamental due process rights and that FTC Chair Lina Khan should recuse herself from the case, according to the lawsuit filed in Washington federal court Monday. Bloomberg earlier reported that Khan was visiting MGM Grand on the Las Vegas strip in September when the company was hit by a cyberattack that temporarily shut down its computer systems. A front desk clerk asked Khan and her staff to write down their credit card information on a piece of paper as they were checking into the hotel, according to Bloomberg. Khan responded by asking the employee how MGM was managing data security in this situation. Shortly after, the FTC started an investigation and in January demanded that the company respond to how it handled the situation, according to the lawsuit. The agency asked the company to hand over more than “100 categories of information.” The company also claimed that the FTC relied on “inapplicable” regulations that apply only to financial services companies to demand information from the casino operator. FTC representatives didn’t respond to a request for comment. The agency will likely challenge the MGM lawsuit, according to a person briefed on the situation. The person said there is a long history of efforts to get Khan disqualified from past cases, but added that people normally try to get her removed for having a point of view, rather than just being present. The FTC earlier denied the company’s request that Khan recuse herself from involvement in the investigation given her personal experience with the cyberattack. “As the most high-profile person involved in the events at issue — and the only such person widely identified by name in press reports — Chair Khan is both a potential civil plaintiff and a potential witness,” attorneys for the company wrote in the lawsuit.        

The vast majority of small insurers operating in Florida are considered so financially weak that they wouldn’t typically meet federal guidelines allowing them to back mortgaged homes. That’s a central finding of a study that also suggests that Florida consumers are being led to believe their insurers are much healthier than they really are. The study, by researchers at Harvard University, Columbia University and the Federal Reserve Board, has not yet been peer-reviewed. But it was posted on a website for scholarly papers in December and has caught the attention of national and state insurance officials and observers. There are few independent studies of Florida’s insurance crisis, and the report offers insight into one of the state’s vulnerabilities: its reliance on about 50 small insurers, covering about 70% of policyholders, that are usually rated by a single company. That ratings company, Ohio-based Demotech Inc., was the target of a round of public retribution in 2022, after Gov. Ron DeSantis’ administration accused it of threatening to downgrade 17 companies that year. The downgrades posed a threat to the state’s housing market as DeSantis was seeking reelection and gearing up for a presidential run. The mortgage giants Fannie Mae and Freddie Mac require insurance from highly rated companies, such as those that receive an “A” from Demotech. If 17 insurers suddenly didn’t qualify, a million Floridians could have been left scrambling to seek insurance policies. Demotech was accused of being a “rogue ratings agency” by Florida’s chief financial officer, and U.S. Sen. Marco Rubio wrote that its ratings were “dubiously based.” Neither produced evidence Demotech did anything improper. Ultimately, four insurance companies went insolvent, and Demotech continues to be the industry’s primary ratings agency. In their study, researchers compared Demotech’s ratings to that of AM Best, a more tenured company that rates some insurers in Florida. To Fannie Mae and Freddie Mac, Demotech’s “A” is equivalent to AM Best’s “B” or “B+”. Researchers found they were not equivalent. Their results showed that two-thirds of Demotech’s A-rated insurers would not meet Freddie Mac’s eligibility to insure mortgaged homes, and 21% would not meet Fannie Mae’s requirement, if they were rated by AM Best. Overall, it indicates there are “inconsistencies” among ratings agencies that “could encourage ratings shopping” by lower-quality insurers, they write. “The ratings are not as meaningful as you would hope them to be,” said Ishita Sen, a professor of finance at Harvard Business School and one of the authors of the report. When asked for comment, Fannie Mae and Freddie Mac did not directly address the report’s findings. Both said in statements that they regularly review insurance rating requirements. “We do not influence or opine on the rating methodologies developed and executed by these rating agencies,” a statement from Freddie Mac said. The authors presented the paper to a research group there during an academic seminar last week. Joe Petrelli, the founder and CEO of Demotech, said the report was yet another unfounded attack on his company. He said he had other studies showing that Demotech’s ratings were accurate and reliable. “It’s part of the hit job that began in July of 2022,” Petrelli said. Higher default rates The authors said they focused on Florida because its insurance market is a bellwether for the nation. Unlike most states, Florida’s market is dominated by small startup insurers that sprang up as national carriers withdrew from the storm-prone peninsula. Many of the new companies had relatively little money or experience; some were led by former politicians. No ratings agency was willing to evaluate them. Nearly all mortgage lenders require homeowners to have insurance through a carrier approved by Fannie Mae and Freddie Mac, which accepts only companies with high enough ratings. Other states are seeing a similar dynamic as disasters strike around the country. Last year, State Farm and Allstate announced they were pulling back from California over increasing wildfire risk. They still write in Florida but under subsidiaries that mostly cover the safer parts of the state. The study’s authors note that the small insurers are far less diversified than their large counterparts. They’re also far more prone to go out of business and more likely to receive consumer complaints. About 19% of companies Demotech rated “A” and above went insolvent between 2009 and 2022. Between 2006 and 2016, the state was not hit by any named hurricanes. Mortgage lenders seem to be aware that the smaller insurers are riskier, according to the study. Florida lawmakers have helped startup insurers by paying them to take policies out of state-run Citizens Property Insurance. When that happens, lenders are more likely to offload those mortgages to Fannie Mae and Freddie Mac, placing the risk with federal taxpayers, according to the study. The two corporations were created by the federal government to buy mortgages from lenders, pool them and sell them as mortgage-backed securities, freeing up lenders to sell more mortgages. The two corporations guarantee the securities — Fannie Mae typically from larger banks and Freddie Mac from smaller banks. “Our results suggest that the banks are aware that there is, sort of, good insurers and bad insurers, and are trying to limit their exposure to the high-risk insurers,” said co-author Parinitha Sastry, a professor of finance at Columbia Business School. Ana-Maria Tenekedjieva, a senior economist at the Federal Reserve Board, is the third co-author of the report. Fragile insurers could also be causing Floridians to default on their mortgages after hurricanes strike. The authors found higher rates of mortgage delinquencies after storms in counties that were dominated by those insurers. Despite the risks with Florida-based insurers, Florida regulators have been “lax,” they write. Under state law, small insurers’ finances must be reviewed once every five years, the same rate as larger national insurers. (One insurer that went insolvent in 2018 had not been reviewed in seven years, the Times/Herald found.) “You want the low-quality ones to be examined a lot more,” Sastry said.

Study recommended changes

State lawmakers and regulators have been aware of the risks. After 2022, when the governor and regulators publicly lashed out at Demotech, lawmakers commissioned a $750,000 study to explore alternatives to the company. The study’s authors recommended requiring that insurers be rated by two companies instead of one, and that the state create a program to encourage those insurers to improve their ratings over time. Lawmakers did not publicly discuss the report or take up its recommendations. Florida’s insurance market is stabilizing, and regulators recently approved eight companies to write policies, six of which are rated by Demotech. Some Florida-based insurers are also seeking ratings from another new agency, Kroll Bond Rating Agency, which was approved by Freddie Mac last year. This session, state Rep. Spencer Roach, R-North Fort Myers, introduced a bill that would have required the state to seek independent ratings for insurers. It never received a hearing. He said the new study’s findings are “obvious.” “Nevertheless I am surprised to see it in print,” he said in a text message.    

HDI Global said it is expanding its operation to include clients in the mid-market segment that have turnover of between €20 million ($21.3 million) and €500 million. The industrial insurer is committed to the middle market in both liability and property complementing other lines, it said in a statement. Following a long-term partnership approach to large industrial clients worldwide, HDI Global said it is expanding its services to include mid-market clients. The insurer said it now offers domestic and international solutions for mid-market clients and a commitment to mid-market brokers. HDI Global’s mid-market initiative focuses on markets, including Belgium, Netherlands, France, Italy, Spain, Denmark and the United Kingdom as well as Canada, Mexico and Australia, a spokesperson said in an email to BestWire. "In all those markets we are already active in the middle market segment, but now our efforts are significantly strengthened on both strategic and operational levels," the spokesperson said. He said business in Denmark and Mexico is less-developed. "The mid-market approach focuses mostly on liability and property complementing other lines of business," he said. The mid-market segment has a range of industries including services within real estate, hospitality, offices, machinery manufacturers, breweries, scientific and technical services, retail, merchandise and consumer goods, HDI Global said. With the strategic focus and internal processes in place, "our partners within the mid-market segment can focus on their core business and entrepreneurial opportunities instead of the risks that come along the way," David Hullin, member of the HDI Global executive board responsible for Europe (without Germany), Americas, Association of Southeast Asian Nations, South Africa and Middle East, said in a statement. Hullin noted HDI Global’s position as a partner in transformation for clients in the mid-market segment worldwide. The insurer's focus on mid-market partnerships "comes as a natural in times of accelerated transformation for many companies,” Mukadder Erdönmez, member of the HDI Global executive board responsible for third-party liability, cyber insurance and motor, said in a statement. Erdönmez said HDI Global has already been offering services to mid-market clients, "but with recent developments, the focus has strengthened. The key regions of focus include Europe, Australia, Canada and Mexico, ensuring that clients across these areas can benefit from HDI Global's expertise and own global network in more than 175 countries." HDI Global Specialty earlier acquired a majority stake in managing general agency Falcon Risk Holdings LLC from investor Griffin Highline, seeking growth in the U.S. market. Parent HDI Global SE plans to move quickly to first offer surety and fidelity in the United States. Underwriting entities of HDI V.a.G. have current Best's Financial Strength Ratings of A+ (Superior), A- (Excellent) and B++ (Good).    

Ivans® today announced the results for Q1 2024 Ivans Index™, the insurance industry’s premium renewal rate index. The first quarter results of 2024 showed premium renewal rate change for all major commercial lines of business except Workers’ Compensation are up year over year. Q1 2024 experienced an increase in average premium renewal rate change across all major commercial lines compared to Q4 2023. Premium renewal rate change by line of business for Q1 2024 highlights include:

• Commercial Auto: Q1 2024 average premium renewal rate averaged 9.09%, an increase compared to Q4 2023’s average premium renewal rate of 8.79%. The quarter began with the lowest rate change in January, averaging 7.04%, and experienced its highest rate in February, averaging 10.30%.
• BOP: BOP premium renewal rate increased in Q1 2024 with an average of 9.30% versus 9.12% in Q4 2023. The quarter reached its highest premium renewal rate change in February, averaging 9.72% and ended with its lowest rate of 8.84% in March.
• General Liability: First quarter 2024 premium renewal rate experienced a slight increase compared to Q4 2023, averaging 5.89% versus 5.83%. The quarter began with the lowest rate change in January, averaging 5.38%, and reached its highest rate in February, averaging 6.21%.
• Commercial Property: Average premium renewal rate change for Commercial Property experienced an increase during Q1 2024 at 10.52% versus 10.34% in Q4 2023. The quarter began with the lowest rate change in January, averaging 10.30%, and reached its highest rate in February, averaging 10.77%.
• Umbrella: Average premium renewal rate change for Umbrella experienced an increase during Q1 2024 at 6.81% versus 6.39% in Q4 2023. The quarter began with the lowest rate change in January, averaging 6.35%, and ended with its highest rate in March, averaging 7.10%.
• Workers’ Compensation: Workers’ Compensation premium renewal rate change averaged -0.88% in Q1 2024, down from Q4 2023 at -0.64%. The quarter reached its highest premium renewal rate change in February, averaging -0.40% and ended with its lowest rate of -1.57% in March.

“This quarter’s Ivans Index results show that the premium renewal rates continue to increase across all major commercial lines, signaling continued hard market conditions,” said Kathy Hrach, senior vice president of Product Management, Ivans. “The continued rate increases of the hard market is being closely tracked across the industry as renewals and remarketing become more and more important, and Ivans Index will continue to be a source of data on rate trends.” Released monthly, Ivans Index is a data-driven report of current conditions and trends for premium rate renewal change of the most placed commercial lines of business in the insurance industry. Analyzing more than 120 million data transactions, the Ivans Index premium renewal rate change measures the premium difference year over year for a single consistent policy. Inclusive of more than 38,000 agencies and 600 insurers and MGAs, the Ivans Index is reflective of the premium rate change trends being experienced by all agencies and insurers across the U.S. insurance market. Ivans Index is available to agencies and insurers as part of Market Insights at markets.ivansinsurance.com.  

The U.S. cyber insurance line generated strong direct underwriting profits for the second straight year in 2023, but written premium volume has stalled amid renewed pricing pressure, Fitch Ratings says. A first look at data compiled from cyber insurance supplemental filings in statutory financial statements indicates that for standalone cyber coverage the direct incurred loss and defense and cost containment (DCC) expenses ratio held relatively steady at 44% in 2023 versus 43% in 2022. Despite two poor/performing years in 2020 and 2021, this ratio has averaged a highly profitable 48% over the nine years that cyber supplemental data is available. Favorable cyber underwriting results are partly due to prior large increases in premium rates. Insurers are also being more careful in cyber risk selection and the underwriting process. They are requiring that customers maintain proper cyber hygiene and risk management practices before agreeing to insure them. Additionally, insurers are tightening policy language to more strictly define terms, with more frequent insertion of sub-limits and exclusions. U.S. statutory direct written premiums for cyber coverage in standalone and package policies declined for the first time on record in 2023 by a modest 2%. This represents a sharp drop off from market growth of approximately 200% from YE20 to YE22. The reversal occurred even with continued growth in demand for coverage and carriers keen on expanding their cyber underwriting portfolios despite weaker pricing trends. Stand-alone cyber coverage, which represents 69% of all industry written premiums, declined by 3% in 2023 to $4.9 billion. Current segment underwriting profitability at current levels is unsustainable as cyber insurance pricing is likely to remain flat or down going forward. The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Survey reveals that pricing has substantially moderated following rapid rate increases throughout 2021 and 2022. Average cyber renewal premium rate increases were up less than 1% per the 4Q23 survey compared with 15% and 34% in 4Q22 and 4Q21, respectively. Global insurance broker Marsh reported that U.S. cyber renewal rates were down for the last three successive quarters, including a 4% decline in 4Q23, as new capacity continues to enter the market despite concerns regarding ransomware and cyber catastrophe exposure, particularly via the managing general agent channel. Statutory cyber financial data does not provide a full picture of segment profitability as direct results do not include all underwriting and adjusting expenses. Effects on premiums and losses from ceded reinsurance also are not considered, and cyber is typically a product for which primary carriers buy considerable reinsurance protection. Carriers will face ongoing challenges to maintain underwriting discipline as market competition intensifies and adapt to an evolving claims environment that is heavily influenced by technological change. Cyber loss risk is also heightened by expansion of regulatory and compliance requirements, including recent SEC cyber risk management disclosures for public companies, that increase potential for litigation risks and substantial fines and penalties for not properly disclosing data breaches. Catastrophe exposure from cyber risks is another significant source of uncertainty in terms of the nature, likelihood and cost of the most severe cyber event. Considerable resources are expended by carriers and risk modeling firms to measure risk aggregations and probable maximum losses from larger cyber events. However, these tools remain less advanced than natural catastrophe risk models that have been refined over the last 30 years.

Baltimore Mayor Brandon Scott said Monday that the city had hired attorneys to pursue legal action against the operators of the cargo vessel that struck and toppled the Francis Scott Key Bridge last month, the same day the FBI confirmed it had opened a criminal probe. In a statement, Scott said the city had hired Philadelphia law firm Saltz Mongeluzzi Bendesky, which specializes in personal injury suits, and DiCello Levitt, a Chicago-based firm that specializes in civil and human rights litigation and commercial, environmental, and class-action lawsuits. Sara Gross, the city Office of Law’s chief of affirmative litigation, will also serve on the legal team. Six construction workers died in the March 26 incident, which temporarily shut much of the Port of Baltimore, idling 15,000 port workers and impacting nearby businesses. Authorities have since begun salvaging the ship, which remains stalled in the Patapsco River, weighed down by parts of the structure. Federal officials have pledged to finance the cleanup, and authorities expect the port to fully reopen by the end of May. The FBI also confirmed Monday that its agents had searched the ship, but it declined to comment further. Scott said the city’s purpose in hiring the firms was to “hold the wrongdoers responsible and to mitigate the immediate and long-term harm caused to Baltimore City residents.” The Singapore-flagged ship Dali was minutes into a monthlong journey to Sri Lanka when it collided with the bridge shortly before 1:30 a.m. March 26. Scott said the two firms would take “decisive action” against the Dali’s owner, Grace Ocean Private Limited; its manager, Synergy Marine; and its charterer, Maersk, citing the former two firms’ April 1 petition to limit their legal liability. Maersk spokesperson Kevin Doell said the Danish shipping company was “closely following the situation” and cooperating with authorities, Grace Ocean, and Synergy “on all aspects of the incident, including the investigation and information regarding the cargo that was onboard the Dali.” He declined to comment further, citing the ongoing investigation. Darrell Wilson, a spokesperson representing Synergy and Grace Ocean, also declined to comment, citing ongoing investigations. “We are continuing to do everything in our power to support everyone impacted here and will continue to recognize the human impact this event has had,” Scott said in a news release. “Part of that work needs to be seeking recourse from those who may potentially be responsible, and with the ship’s owner filing a petition to limit its liability mere days after the incident, we need to act equally as quickly to protect the City’s interests.” Adam Levitt, of the firm DiCello Levitt, said they will bring “significant” economic and environmental loss claims on behalf of the city government and city residents in their roles in what is believed to be one of the largest-ever maritime disasters. “We need to hold these entities accountable for the emotional toll and the substantial financial losses that the City of Baltimore and its residents are facing,” Levitt said. The Office of Maryland Attorney General Anthony Brown is also soliciting outside legal counsel to pursue action against the Dali. Brown said Monday that his office will consider pursuing “multiple defendants” to help recoup costs for salvaging, recovery, and damages to the environmental and natural resources. “We’re seeing numbers from $500 million to over $1 billion to replace [the bridge],” he said. “Multiple individuals or entities contributed to that collision or allision between the ship and the bridge. As chief legal officer of the state, my responsibility is to file actions to protect the interests of the state, to recover for that damage.” He declined to say whether his office had been communicating with criminal investigators. “I suspect there will be even more investigations from different angles, looking at a variety of things,” he said. “Everything from who’s liable, whether it’s criminally or civilly, and how do we make things better? Safer? So something like this doesn’t happen again.”

The costs of rising insurance is not sparing rental properties, and landlords say they too are struggling with the hikes and demands by insurers. "We don’t know what the insurance for this year because they’re waiting on the outcome with the new roof," Randy Paigo, who owns five rental properties in Palm Beach County, said. Randy Paigo owns five rental properties in Palm Beach County and has to pass on increased costs, including insurance, to tenants. “I just put a brand-new roof on the one I have in Boynton Beach and that roof never had any problems." The rising costs, he said, have led him to raise rents around $150 a month but he said doesn't want to drive away tenants. Paigo said he's tried shopping around, but out of three quotes the cheapest was still $1,300 more than his Citizens policy. Insurance agent Lee Wiglesworth at Wiglesworth-Rindom Insurance in Stuart said he hears from homeowners who think it's a better option to sell their homes and start renting. "What I advise them is there is no hiding from those because those landlords from where they will rent is going to be getting these insurance bills," he said. "Those buildings are getting the things from their companies. They’re getting requests to replace the roof."    

The Midwest Division of the Insurance Industry Charitable Foundation (IICF), a unique nonprofit organization dedicated to helping communities and enriching lives, will honor Jodie Kaufman Davis, Executive Vice President of H.W. Kaufman Group, with its prestigious Trailblazer Award for philanthropic excellence and industry leadership at the 13^th annual Blazing the Trail Benefit on May 2 at the Fairmont Hotel in Chicago. The 2024 IICF Blazing the Trail Gala will convene insurance leaders from Chicago and throughout the Midwest, along with representatives of local nonprofits, to celebrate the philanthropic achievements of the industry and raise funds for regional nonprofit partners serving those in need. “I am honored to receive the Midwest Trailblazer award from IICF, an organization that shares our company’s commitment to meaningfully impact the communities where we do business,” said Jodie Kaufman Davis. “Events such as Blazing the Trail, along with the broader IICF’s 30^th Anniversary campaign, enable industry professionals to come together, while dedicating time and resources to those in need.” IICF is honoring Kaufman Davis as the 2024 Midwest Trailblazer for championing company culture along with her leadership in advancing inclusion initiatives across Kaufman’s global team. In addition to her numerous leadership responsibilities in the US, Canada and worldwide, she serves as the executive sponsor for Kaufman’s employee resource groups (ERGs). The self-governing ERGs tap into the unique expertise and perspectives of Kaufman associates to tackle complex business challenges. In 2020, Kaufman Davis was named to the Insurance Business Global 100 and also received the Business Insurance Women to Watch Award the year prior. Outside the workplace, she is an active Board Member of the Young Presidents’ Organization (YPO) Motor City Chapter, a Director on the Insurance Supper Club (ISC) Group Global Advisory Board and serves on the IICF International Board of Governors. Kaufman Davis is also currently serving as Chair of the IICF 30^th Anniversary Committee and leading this industrywide campaign to fight childhood hunger. Proceeds from the 2024 Midwest Division Blazing the Trail Gala will fund the IICF Midwest Community Grants Program, which awards grants to regional nonprofits focused on education, safety and health. Since its founding in 2011, IICF’s Midwestern Division has granted more than $5 million to hundreds of nonprofits. IICF is proud to count nearly 150 insurance industry leaders across the Midwestern states as board members contributing to local communities as part of the IICF Midwest Division and Associate Boards based in Chicago, as well as through the IICF Ohio and Heartland (Kansas and St. Louis) Chapter Boards. “This year’s theme of ‘empowering brighter futures, together’ so clearly describes our impact in the community, and what we’re aiming to achieve through our annual Blazing the Trail Gala by bringing the industry together in celebration of philanthropy,” said Jeff Kroeger, Chair of the IICF Midwest Division Board of Directors and President, Insureon. “Last year we raised $540,000 to help our neighbors in need, and through IICF Community Grants and our volunteer work in the community, we are helping local children, families and individuals begin to envision a brighter future.” The 2024 Blazing the Trail Gala is made possible by:

• Presenting Sponsor: Burns & Wilcox
• Platinum Sponsors: Aon, CNA and CRC Group
• Gold Sponsors: Amwins, Berkshire Hathaway Specialty Insurance, The Hartford and Zurich and additional generous sponsors.

For more information regarding IICF’s Midwest Blazing the Trail Gala and to reserve a table, please visit the IICF website or contact IICF Midwest Executive Director Kelly Hartweg at (773) 991-2149 or khartweg@iicf.org. About the Insurance Industry Charitable Foundation (IICF) The Insurance Industry Charitable Foundation (IICF) is a unique nonprofit that unites the collective strengths of the insurance industry to help communities and enrich lives through grants, volunteer service and leadership. Established in 1994, IICF is celebrating the thirtieth anniversary of serving as the philanthropic voice and foundation of the insurance industry throughout 2024, having contributed $48 million in community grants along with over 337,000 volunteer hours by more than 125,000 industry professionals. IICF reinvests locally where funds are raised for maximum community impact, serving hundreds of charities and nonprofit organizations across the US and UK. IICF is a registered nonprofit organization under section 501(c)(3) of the IRS code. Learn more at www.iicf.org or follow us on social media at: LinkedIn and Instagram  

Streaming giant Roku has confirmed a second security incident in as many months, with hackers this time able to compromise more than half a million Roku user accounts. In a statement Friday, the company said about 576,000 user accounts were accessed using a technique known as credential stuffing, where malicious hackers use usernames and passwords stolen from other data breaches and reuse the logins on other sites. Roku said in fewer than 400 account breaches, the malicious hackers made fraudulent purchases of Roku hardware and streaming subscriptions using the payment data stored in those users’ accounts. Roku said it refunded customers affected by the account intrusions. The company, which has 80 million customers, said the malicious hackers “were not able to access sensitive user information or full credit card information.” Roku said it discovered the second incident while it was notifying some 15,000 Roku users that their accounts were compromised in an earlier credential stuffing attack. Following the security incidents, Roku said it rolled out two-factor authentication to users. Two-factor authentication prevents credential stuffing attacks by adding an additional layer of security to online accounts. By prompting a user to enter a time-sensitive code along with their username and password, malicious hackers cannot break into a user’s account with just a stolen password.    

Ahead of the 2024 Atlantic hurricane season, FloodFlash, the first insurance technology company to offer sensor-enabled parametric flood insurance, is launching a product to support business interruption (BI) coverage in the United States.

“Flooding causes billions of dollars in losses across the US every year yet only 20% of those losses are covered by insurance - and a massive part of that uninsured loss comes from business interruption. The BI options on the market are too few and offered too rarely. ”

With a widely predicted hyperactive hurricane season, many experts anticipate huge losses from property damage and BI that could devastate businesses and communities for months on end. Flood BI has been created because many businesses and public entities are unable to get BI cover. It isn't included under National Flood Insurance Program (NFIP) policies and private carriers rarely offer standalone BI. FloodFlash hopes to support the many organisations at risk of flooding, not just in the Gulf and Eastern seaboard, but across the US. FloodFlash US Commercial Director Rich Coyle said: “Flooding causes billions of dollars in losses across the US every year yet only 20% of those losses are covered by insurance - and a massive part of that uninsured loss comes from business interruption. The BI options on the market are too few and offered too rarely. “We couldn’t be more excited to launch Flood BI. It takes the same principles of the FloodFlash product and applies them for a truly under-served section of the market. To the thousands of businesses at risk of flooding that rely on their premises to provide goods, hospitality, healthcare and more, we can now say Flood BI is here to help.” Key product features: - no limitations on how clients spend their parametric claim payment, Flood BI can cover any and all aspects of BI including non-damage BI and denial of access. - The rapid-payment claims in keeping with the core FloodFlash offering mean that claimants receive the full value of their policy within weeks of flooding. - FloodFlash provides expert support throughout the process, helping on everything from BI limit calculation to sensor placement and policy triggers. - Limits: up to $5m per location ($2m in Florida). Up to $10m available subject to underwriter approval. - Blanket limit of $10m available for multi-location submissions - Sectors include: hotels and hospitality, sport and leisure, retail, healthcare and assisted living, real estate, manufacturing, municipality, education. - Policy trigger: pre-agreed depth measured by FloodFlash sensor(s). About FloodFlash FloodFlash is a multi-award-winning insurance technology company at the forefront of the parametric insurance movement. Launched in 2019, their rapid-payout flood product provides coverage to businesses and public bodies that struggle to secure flood terms anywhere else. They use the latest in data modelling and IoT technology to provide fast and flexible cover that pays claims in record times. FloodFlash is a registered coverholder at Lloyd’s of London and is authorised and regulated by the Financial Conduct Authority.