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.

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Madison, Wis. — Oct. 3, 2024 — Rural Mutual Insurance Company and Badger Mutual Insurance Company, with a combined 227 years of providing farm, commercial and personal policies, announce an affiliation subject to regulatory approval with an anticipated effective date in January 2025.

Rural Mutual and Badger Mutual are well-respected Wisconsin-based brands that each bring value to the affiliation, including an extensive breadth of industry knowledge, exceptional customer service, and deep community involvement. Both companies share a similar vision and culture that will support collaboration, and they will each retain their distinct brand identities. They believe this affiliation will generate long-term growth and stability for employees, agents, and policyholders.

“The opportunity to affiliate these two reputable brands for mutual growth is exciting, and we look forward to working together to increase the value of both organizations even more,” said Dan Merk, Rural Mutual Executive Vice President and CEO. “Even beyond our shared Wisconsin roots, Badger Mutual’s consistent commitment to their employees and communities make them a perfect cultural fit for us.”

Rural Mutual adds its financial strength and AM Best A+ rating, seasoned staff, local agents, and operational excellence to the relationship. Badger Mutual contributes an experienced management team and independent agents with an expanded sales footprint in six states outside of Wisconsin.

“We are excited about the opportunities this partnership brings for our policyholders, agents, and employees. Rural Mutual is a top-tier insurance brand with a strong reputation, whose values and principles are closely aligned with ours. This strategic alliance will be a significant milestone, marking a new chapter in Badger Mutual’s history,” said Dan Nigro, President & CEO of Badger Mutual. “From the outset, we felt a great synergy with the Rural Mutual team, and our entire organization is eager to embrace the growth and scale this affiliation will foster.”

Both companies will continue to maintain their existing Wisconsin headquarters with Rural Mutual in Madison and Badger Mutual in Milwaukee.

About Rural Mutual Insurance Company

Rural Mutual Insurance Company has been protecting Wisconsin for 90 years and is the state’s No. 1 writer of farm insurance and No. 4 writer of commercial insurance. As an AM Best A+ Superior company, Rural Mutual provides a full line of insurance products exclusively to farms, families, and businesses in Wisconsin. The company is headquartered in Madison, Wisconsin with over 150 local agents across the state.

About Badger Mutual Insurance Company

Badger Mutual Insurance Company has been providing a range of property and casualty insurance products since 1887. The company is headquartered in Milwaukee, Wisconsin, and is represented by over 320 local agencies across seven states: Wisconsin, Illinois, Minnesota, Iowa, Michigan, Arizona, and Nevada.

Happy Wednesday! In this week's Big I Buzz: new data shows 1 in 8 U.S. homeowners aren't protected by homeowners insurance. Plus, discover how embracing Gen Z can boost your workplace potential.

1 in 8 U.S. Homeowners Aren’t Protected by Homeowners Insurance

New data shows that 1 in 8 U.S. homeowners are without homeowners insurance, leaving many exposed to significant financial risks. The lack of coverage is especially common in rural areas and states with higher poverty rates, where economic challenges can make insurance less accessible. This is particularly concerning for regions vulnerable to natural disasters, like floods and wildfires, where the financial consequences of being uninsured can be devastating. With disaster risks on the rise, addressing this gap is crucial to helping homeowners protect their properties and financial futures. Encouraging greater awareness and accessibility to insurance could help close this critical coverage gap. Read the interview here.

Gen Z in the workplace: Shift mindsets to embrace maximizing potential

As Gen Z enters the workforce in growing numbers, it’s essential for businesses to shift their mindsets and embrace this generation’s unique strengths. From their tech-savviness to their desire for flexibility and inclusivity, Gen Z brings fresh perspectives that can drive innovation and collaboration. However, fostering an environment where they can thrive requires understanding their values and adapting leadership styles. Learn how to unlock the full potential of Gen Z and create a more dynamic workplace. 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 the cost of climate disasters so far in 2024. Plus, New York City's biggest taxi insurer is insolvent.

U.S. logs 19 billion-dollar climate disasters so far in 2024

As of the first week of August 2024, the U.S. experienced 19 weather or climate events with losses that exceeded $1 billion, according to the National Oceanic and Atmospheric Association (NOAA). Researchers with NOAA’s National Centers for Environmental Information reported 15 severe storm events, 1 tropical cyclone, 1 wildfire, and 2 winter storm events. The agency's year-over-year "Scorekeeper" aims to examine climate events from a historical perspective, a practice NOAA has followed since 1980. Between 2019 and 2023, the U.S. experienced 102 billion-dollar weather and catastrophe events, NOAA reports. Read more here.

New York City's Biggest Taxi Insurer is Insolvent, Risking Transit Meltdown

New York City's largest taxi insurer, American Transit Insurance Co. (ATIC), is insolvent, posting over $700 million in net losses in the second quarter of 2024. ATIC insures 60% of the city's taxis and rideshare vehicles, and its potential collapse could leave tens of thousands of drivers uninsured, destabilizing the transit system. The company has faced long-standing financial issues, exacerbated by rising claim sizes and underpriced premiums. Regulators may need to intervene, potentially placing the company into receivership or liquidation. 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, the FTC non-compete ban is struck down. Plus, a look at the significant year-over-year increase in reconstruction costs.

FTC Ban on Non-Compete Agreements Struck Down

Judge Ada Brown of the U.S. District Court for the Northern District of Texas ruled on Tuesday, August 20 that the Federal Trade Commission (FTC) cannot enforce its ban on noncompete agreements. The court held the Non-compete Rule is unlawful and is set aside. The decision effectively blocks the Non-Compete Rule from going into effect on the previously scheduled date of September 4, 2024. The rule targeted employment agreements that prohibit, penalize or effectively prevent a worker from seeking or accepting work elsewhere or operating a business after leaving a particular job. The rule was partially blocked in July. Read more here.

Reconstruction Costs Accelerated 5.2% Year-Over-Year

Total reconstruction costs in the U.S. rose by 5.2% from July 2023 to July 2024, according to Verisk’s 360Value Quarterly Reconstruction Analysis for Q3. This marks a significant increase over the 4% cost growth from July 2022 to July 2023. Total residential reconstruction costs increased 4.9% between July 2023 to July 2024 when every state saw an increase. New Hampshire had the highest increase at 9.6%, followed by Colorado at 9.1% and Nebraska at 6.4%. Commercial property total reconstruction costs increased by 5.5% during the same period, increasing by at least 3.4% in every state. Again, New Hampshire had the highest increase at 12.4%, followed by Colorado at 11.6% and Massachusetts at 8.9%. 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.