Happy Wednesday! In this week's Big I Buzz: The Big "I" and ACT provide a memo and sample policy on AI. Plus, the 2024 Insurance Fraud Hall of Shame.

Big ‘I’ and ACT Provide Memo, Sample Policy on AI

The promise of artificial intelligence (AI) is compelling. Agencies have access to newly available automated products or services that could make them more efficient, effective and profitable. However, there are important legal issues related to AI that Big “I" members should consider.

For example, like any other third-party vendor that handles data, AI raises potential data privacy and security risks that may—or may not—be addressed in the vendor's contractual terms. Agencies should also guard against risks relating to the accuracy of AI outputs, as well as intellectual property infringement and ownership issues.

Agencies should also watch out for new contractual restrictions imposed by carriers around AI usage, as well as regulatory compliance issues. Colorado recently became one of the first states to enact a comprehensive law regulating the use of AI in “high risk" systems that make “consequential decisions" in certain sectors, including insurance.

While the Colorado AI Act does not go into effect until February 2026, agents should consider proactively addressing AI usage with their staff. The Big “I" Office of General Counsel and ACT have published a memo on the legal issues relating to AI usage and a sample acceptable-use policy that members can customize for their business. The sample can be found at the end of the memo on legal risks, which is available on the Big “I" Legal Advocacy webpage.

The 2024 Insurance Fraud Hall of Shame

Insurance fraud comes in all shapes and sizes, and some cases are truly head-scratching. PropertyCasualty360’s 2024 Insurance Fraud Hall of Shame highlights some of the wildest schemes from the past year. View the list here.

Happy Holidays from the IIAW

Our office will be closed December 24, 25, 31 and January 1 for the holidays. This will be the final edition of the Big I Buzz of 2024. We'll return with fresh updates on January 8! In the meantime, stay connected with us on Facebook and LinkedIn. We'll see you in the New Year!

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: Registration is now open for InsurCon2025, and the latest updates on the US personal lines insurance outlook and FEMA's action on Fort Myers Beach.

InsurCon2025 Registration Now Open

The Independent Insurance Agents of Wisconsin (IIAW) is excited to announce that registration is now open for InsurCon2025! This year’s convention will take place May 7-8 at the iconic American Family Field, home of the Milwaukee Brewers. Get ready for an unforgettable experience alongside Wisconsin’s top independent insurance agents, all set in a truly unique ballpark setting. You won’t want to miss out on the chance to network, learn, and enjoy a grand-slam experience at this one-of-a-kind event! Register today and save your spot!

AM Best Revises Outlook for US Personal Lines Insurance to ‘Stable’

AM Best recently revised its outlook for the US personal lines insurance segment to "Stable." The move reflects improved underwriting results, a favorable pricing environment, and enhanced capital positions for insurers. The outlook indicates a balance between challenges such as inflation and rising claims severity, alongside solid financials and a healthy competitive environment. As insurers continue to navigate these evolving conditions, this revised outlook offers a positive signal for the personal lines market. Read More Here.

FEMA Takes Action on Fort Myers Beach for Improper Rebuilding
FEMA has issued a sharp warning to the Fort Myers Beach area following reports of improper rebuilding in flood-prone zones. After Hurricane Ian’s devastation, officials discovered that several structures were rebuilt without adhering to the necessary floodplain management rules, prompting the agency to halt federal disaster relief funds. This action highlights the importance of compliance with flood mitigation measures and serves as a cautionary tale for other communities rebuilding after natural disasters. 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: a New York man was charged with insurance fraud in a staged car crash captured on dashcam footage. Plus, a look at how the election could bring changes to the P/C insurance sector.

NYC Man Charged With Insurance Fraud in Staged Car Crash Captured By Dashcam

A New York City man was recently charged with staging a car accident in Queens to commit insurance fraud. The alleged incident, captured on dashcam footage that went viral, involved the suspect's vehicle cutting off another driver and then intentionally reversing into her car. The suspect was arrested upon returning to New York from Ecuador, while authorities are still searching for other accomplices. He faces multiple charges, including reckless endangerment and insurance fraud, to which he has pleaded not guilty. Read more here.

Election Could Bring Change to Property/Casualty Insurance Sector

The recent elections could lead to changes in the property/casualty insurance landscape as new policies emerge at both state and federal levels. The American Property Casualty Insurance Association (APCIA) aims to push federal legislation on third-party litigation funding transparency, while state-level tort reforms may continue. Experts suggest that Trump's potential tariff policies could increase repair costs for insurers, affecting premiums. Meanwhile, mergers and acquisitions may benefit from a stable tax environment, though challenges with foreign partnerships may arise. 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: a look at how natural disasters kickstart legal work, plus how to help workers understand and use their benefits.

Attorneys Reveal How Natural Disasters Kickstart Legal Work

Florida's legal landscape is bracing for a wave of claims following two back-to-back hurricanes this year. Legal experts anticipate a range of disputes, from typical insurance claims to unique cases involving property law and family law, which often see increases after natural disasters. The storm aftermath highlights vulnerabilities in the state’s legal and insurance systems, which face heightened pressure to manage rising claim volumes. Meanwhile, regulatory bodies are likely to revisit and possibly reform aspects of property insurance coverage. For more on the legal implications, read more here.

Workplace Benefits: How to Help Workers Understand and Use Them

Helping employees understand and use workplace benefits remains a challenge, as many find benefits confusing or underutilized. Open enrollment presents a critical opportunity for benefits brokers to clarify offerings and connect workers with personalized options. Tools are available that can help employees make informed decisions through surveys and tailored recommendations. With rising healthcare costs, companies are increasingly offering diverse benefits, including mental health resources, legal services, and identity protection. 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: Hurricane Milton caused private insured losses of about $36 billion. Plus, how to combat the growing threat of jewelry fraud.

KCC Expects Private Insured Losses of $36B From Hurricane Milton

Hurricane Milton resulted in an estimated $36 billion in private insured losses, according to catastrophe modeler Karen Clark & Co. (KCC). The estimate includes damages from wind, storm surge, and inland flooding, impacting personal, commercial, and industrial properties, vehicles, and business operations. Unlike Hurricane Helene, which also struck Florida's West Coast, most of Milton’s damage came from wind, leading to higher losses covered by private insurers, according to KCC. While both Milton and Helene were major hurricanes, Milton was at one point a Category 5 storm before wind shear weakened it to a Category 3, making landfall near Sarasota on October 9. Insured losses of $36 billion would make Milton one of the costliest insured-loss hurricanes ever. Read more here.

Combatting the Growing Threat of Jewelry Fraud

Jewelry fraud is on the rise in the United States, with over $1 billion worth of jewelry "disappearing" each year—accounting for 70% of all stolen property. Low premiums and easy access to jewelry policies make them an appealing target for fraudsters. Common tactics include misrepresentation during the application process, inflating the value of items, insuring counterfeit pieces as genuine, and other exaggerations of ownership and value. Insurance companies have specialized investigative units tasked with identifying these fraudulent claims. Investigators closely examine inconsistent documentation, discrepancies between valuations and sales prices, missing or unverifiable receipts, and patterns of frequent or suspicious claims. 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.