Welcome to The Connected Podcast, where we delve into the dynamic world of insurance, exploring the latest news and events shaping the ecosystem. Join us as we navigate through insightful discussions from industry leaders, analysts, and innovators who are redefining the future of insurance.

In our latest episode, we unpack the significant shifts in the U.S. property and casualty insurance industry. As of Q1 2026, insurers have returned $6.2 billion to policyholders, showcasing a remarkable recovery in underwriting flows over the past two years. This turnaround is highlighted by a net underwriting gain of $15.8 billion, contrasting sharply with a $864 million loss from the previous year, according to Verisk and the APCIA. The industry's combined ratio improved to 92.4% from 99.2%, and incurred losses with corresponding expenses decreased by 9.6%.

Premium growth slowdown has emerged despite these positive trends, with net written premiums increasing by only 2.9% this quarter, as compared to 6.8% the previous year. This deceleration is linked with reduced catastrophe losses, unlike last year's catastrophic wildfires. Robert Gordon from the APCIA notes the effectively declining premiums, adjusted for inflation and dividends, as they provide financial relief to policyholders facing years of rate hikes.

Challenges such as the widening protection gap regarding natural catastrophes were discussed, with Moody's outlining that less than 20% of earthquake-related losses in the U.S. are insured. Varying definitions of economic losses complicate understanding the full scope of this gap, affecting broader catastrophe impacts. Moody's projects $41.4 trillion in global economic losses from physical risks by 2050, with only a fraction insured. This episode highlights the industry's need to balance short-term recovery with strategic, long-term resilience planning amidst these evolving challenges.

The podcast shines a light on climate-related risks as detailed by Nearmap's research on the escalating issue of roof deterioration in the U.S. Due to chronic climate stress, AI-driven analysis of over 2.8 billion roof images indicates that roofs in extreme climates deteriorate faster, underscoring a hidden risk in property insurance.

We also celebrate the Insurance Institute for Business & Home Safety's 11th Annual FORTIFIED Awards, recognizing advancements in disaster-resistant construction. The FORTIFIED program has fortified over 100,000 homes, particularly in the Southeast and Gulf Coast, boosting community resilience against severe weather conditions.

Next, we discuss the challenge of preventing water damage in homes, drawing insights from the Predict & Prevent podcast. Despite numerous smart water protection devices, their full benefits remain unrealized without effective ongoing monitoring and integration, as Paul Vacquier explains.

Lastly, we delve into the American InsurTech Council's new initiative to join the National Council of Insurance Legislators' Corporate Institutional Partnership Program. This collaboration aims to advance policy dialogue around insurance innovation and regulation, marking a pivotal step towards incorporating technological advances within legislative frameworks to benefit insurers and consumers.

In this episode, we also explore the "float" concept, a strategy making significant figures like Warren Buffett immensely wealthy. Companies such as Markel Group and Brookfield Corporation are adopting this method, though its profitability might wane during economic downturns. Additionally, we address the New York Times' analysis linking rising pedestrian fatalities to large vehicles like SUVs, and we frame a discussion on North Carolina's House Bill 315 which seeks to ban third-party litigation funding in lawsuits. While supporters argue it will curtail excessive litigation, critics fear it might restrict plaintiffs' access to justice, with bipartisan backing on the bill yet awaiting gubernatorial endorsement. This legislative move could set a precedent in the crossroads of commerce and the legal system.

Links:
US P&C insurers return $6.2 billion to policyholders as profits rebound: Verisk and APCIA report
U.S. P&C Insurers Post Strong 92.4 Combined Ratio as Premium Growth Slows Sharply
Shedding light on uninsured loss
Nearmap Analysis Reveals Climate Stress Is Quietly Reshaping Property Risk Across America
IBHS Honors Industry Leaders Driving Record FORTIFIED Growth
Predict & Prevent® Podcast Episode 28: Turning Water Damage Prevention Into a Trust Business
American InsurTech Council Joins NCOIL Program
How Insurance Companies Turn Their Premiums Into Billions in Profit
75% More Pedestrians Have Been Killed Since 2009. Giant Trucks and SUVs Are a Major Reason
North Carolina moves to ban third-party investments in lawsuits