Happy Wednesday! In this week’s Big I Buzz: a FEMA leadership shakeup ahead of hurricane season, and a rise in cyber claims tied to business email compromise in 2024.

Acting FEMA Chief Is Ousted After Less Than 4 Months

Less than four months into the role, acting FEMA Administrator Cameron Hamilton has been dismissed, just weeks before the official start of hurricane season. While FEMA has not provided a reason for his removal, the agency confirmed Hamilton’s departure from the position he assumed in late January following his appointment by President Donald Trump.

Stepping into the role is David Richardson, who has been serving as the assistant secretary for the Department of Homeland Security’s Countering Weapons of Mass Destruction Office since January. A former U.S. Marine Corps ground combat officer, Richardson brings a background in national security and crisis response.

Hamilton’s exit came just one day after he testified before a House Appropriations subcommittee, where in prepared remarks he criticized FEMA for becoming “an overextended federal bureaucracy” that has “strayed far from its core mission.” Read more here.

Insurer Coalition: Costs From Business Email Compromise Rise in 2024

Cyber insurer Coalition reported that in 2024, approximately 60% of its cyber insurance claims were related to business email compromise (BEC), with nearly 30% involving funds transfer fraud (FTF). The average cost of BEC claims increased by 23% to $35,000, while FTF incidents had an average initial loss of $185,000. However, Coalition successfully recovered $31 million for policyholders, emphasizing that prompt reporting enhances recovery chances. While overall cyber claim frequency decreased by 7%, the severity remained stable. Notably, ransomware-related claims saw a 3% decrease in frequency and a 7% reduction in severity, with ransom demands dropping by 22% year-over-year. Read more here.

For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click here to add your email to our emailing list.

Happy Wednesday! In this week’s Big I Buzz: Tips for agents insuring the cannabis beverage boom. Plus, the top pet insurance claims of 2025.

3 Tips for Agents Insuring the Cannabis Beverage Boom

Cannabis-infused beverages are rapidly gaining popularity, offering a new way for consumers—especially those new to cannabis—to enjoy its effects without smoking or edibles. From teas and seltzers to lemonades and soft drinks, these drinks are popping up in bars and boutique grocery stores, making cannabis feel more like a casual social drink than a controlled substance.

But with this growth comes complexity. Hemp-derived THC beverages, legal under the 2018 Farm Bill, are largely unregulated and sold outside the traditional marijuana market—creating challenges for independent insurance agents tasked with covering these businesses. Read about tips for insuring the cannabis beverage boom here.

Top Pet Insurance Claims of 2025

About 66% of U.S. households own a pet—a big jump from 56% in 1988. While pets bring joy, they also come with costs. Annual expenses average around $1,400 for dogs and $1,150 for cats, and emergency care can send those numbers soaring.

To protect their wallets, many pet owners turn to insurance, with monthly premiums averaging $53 for dogs and $32 for cats. Rising vet bills make it easier to justify, especially when top claims have reached over $60,000. PropertyCasualty360 outlines the top pet insurance claims here.

For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click here to add your email to our emailing list.

Happy Wednesday! In this week's Big I Buzz: Wisconsin lawmakers will consider expanding PTSD law. Plus, US health insurers jump as 2026 Medicare payment rates exceed expectations.

Wisconsin Lawmakers to Consider Expanding PTSD Law

Wisconsin lawmakers are considering a new bill that would extend workers’ compensation eligibility for post-traumatic stress disorder (PTSD) to a broader group of first responders.

Currently, only firefighters and law enforcement officers are covered under a standard that does not require their PTSD to stem from unusually high stress. Senate Bill 168 would add emergency medical responders, EMS practitioners, volunteer firefighters, correctional officers, dispatchers, coroners, and medical examiners to the list. Read more here.

US Health Insurers Jump as 2026 Medicare Payment Rates Exceed Expectations

The U.S. government has finalized a 5.06% average increase in 2026 Medicare Advantage payment rates, more than doubling the initially proposed 2.2% from January. This substantial hike is expected to benefit major insurers like UnitedHealth Group, Humana, and CVS Health, allowing for enhanced plan benefits and improved profitability. Following the announcement, Humana's stock surged 11.5%, while CVS Health saw a 6.7% increase. The Centers for Medicare & Medicaid Services (CMS) attributed the updated rate to more comprehensive cost data through Q4 2024, reflecting the Trump administration's strong support for the Medicare Advantage program. Read more here.

For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click here to add your email to our emailing list.

Happy Wednesday! In this week's Big I Buzz: Nine states are taking action to reform third-party litigation financing, while Tesla owners may face rising insurance rates due to targeted vandalism.

Nine States Pursue Third-Party Litigation Reform

Third-party litigation financing—when outside firms fund lawsuits they believe have a strong chance of success—is facing increased scrutiny across the U.S. These funding companies support a variety of commercial and consumer claims, including cases involving trucking incidents. Truck drivers, their employers, and insurers often bear the brunt of excessive and costly litigation related to personal injury claims, creating ripple effects throughout the supply chain. In response, states from Montana to West Virginia have implemented measures to curb litigation financing, with several others now considering similar reforms. Read more here.

Targeted Teslas Could See Insurance Rates Rise

Tesla owners may see rising insurance premiums as acts of vandalism against the brand continue to surge. Protests against Elon Musk—sparked by his role in the federal government’s DOGE initiative—have led to attacks on Tesla vehicles, dealerships, and charging stations. Reports detail cars being spray-painted, set on fire, and having their tires slashed. While many incidents have occurred at dealerships, individual Tesla owners have also been affected. If the trend persists, insurers may adjust rates to account for increased risks related to theft and vandalism. Read more here.

For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click here to add your email to our emailing list.

Happy Wednesday! In this week's Big I Buzz: what to expect for the 2025 tornado season. Plus, a look at how tariffs will impact the insurance industry.

What's In Store for the 2025 Tornado Season?

With spring just around the corner, now is the time to prepare for the possibility of severe weather. In 2024, the U.S. recorded its second-highest number of tornadoes in a single year, with 1,855 confirmed twisters. As spring arrives, severe weather is expected to ramp up again, with AccuWeather predicting that regions outside traditional Tornado Alley may continue to face the worst of these storms. A high-pressure system over the Southwest could suppress thunderstorms in the Plains, while unusually warm Gulf waters may fuel severe storms and tornadoes in the Mississippi Valley.

Looking ahead, thunderstorms are expected to become more widespread in May, impacting the Midwest, mid-Atlantic, and Tornado Alley. Additionally, derechos could pose an increasing threat from late spring into summer. However, overall tornado activity is projected to be lower than in 2024, with an estimated 1,300 to 1,450 twisters this year, including 75 to 100 in March, 200 to 300 in April, and 250 to 350 in May. Read more here.

Tariffs Will Negatively Affect Insurance Industry, Says AM Best

AM Best analysts warn that proposed U.S. tariffs on imports from Canada, Mexico, and China could negatively impact the insurance industry, particularly homeowners’ and auto insurance. A senior director at AM Best highlighted that supply chain disruptions in the auto sector could drive up repair and replacement costs, posing a financial challenge for insurers. Modern vehicles, equipped with advanced technology, are already expensive to fix, and tariffs may further inflate those costs.

Similarly, the homeowners’ insurance market could see rising expenses as tariffs increase the cost of building materials like lumber. As a result, replacement costs are expected to increase. Read more here.

For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click here to add your email to our emailing list.