Happy Wednesday! In this week’s Big I Buzz: a Wisconsin contractor is fined for acting as a public adjuster, and climate risk remains a growing concern across the insurance industry.

Wisconsin Contractor Fined for Acting as a Public Adjuster

Wisconsin Insurance Commissioner Nathan Houdek issued a final decision imposing $6,000 in civil forfeitures after determining that a contractor acted as a public adjuster under Wisconsin law. This subjected the contractor to the standards outlined in Wis. Stat. ch. 629, which he violated through prohibited and fraudulent practices.

The contractor’s business model combined home repair services with “claim assistance” through assignments of benefits, which violated state law. Under Wis. Stat. § 629.10(3), individuals acting as public adjusters cannot have a financial interest in the subject of a claim beyond the compensation established in their contract. Read more here.

Most Insurance Execs Fear the Industry Isn’t Ready for Climate Risk

A new study from ZestyAI found that the insurance industry remains unprepared for climate-driven risks, even as natural disasters become more frequent, severe, and costly. According to the report, 61% of insurance executives believe the industry is not adapting quickly enough to climate-related threats.

Many insurers continue to rely on traditional actuarial and stochastic models, which were built for more stable conditions and fail to reflect today’s complex, property-specific loss patterns. ZestyAI’s leadership emphasized that the industry must evolve its risk modeling to match the realities of a changing climate and that AI-driven, property-level models can provide more accurate insights, improve transparency, and help all stakeholders strengthen resilience. 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: How the government shutdown could impact insurers.

Lengthy Government Shutdown to Impact Insurers, Says AM Best

As the government shutdown begins, AM Best warns of potential ripple effects across the insurance industry. The extent of disruption will depend on how long the shutdown lasts—previous shutdowns have generally been brief, with the longest in recent history (December 2018) lasting 34 days.

A prolonged shutdown could directly and indirectly affect insurers as consumers and businesses adjust spending and investment decisions. Possible impacts include reduced government spending, disruptions in social services, and volatility in financial markets.

Additionally, the National Flood Insurance Program (NFIP), administered by FEMA, expired on Sept. 30. Without reauthorization, FEMA will be unable to issue new flood policies. 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: Wisconsin to receive federal disaster aid after summer floods, and actuaries raise concerns over Medicare’s long-term costs.

Six States to Receive Federal Disaster Aid From Summer Floods

President Trump has approved federal disaster aid for Wisconsin and five other states following storms and floods that occurred this spring and summer. The disaster declarations will provide federal funding to Wisconsin, Kansas, North Carolina, North Dakota, and tribal areas in Montana and South Dakota. In each case except Wisconsin, the approval process took more than a month—continuing a trend of longer waits for disaster relief. Read more here.

Actuaries Warn Medicare Costs Threaten Long-Term Sustainability

The American Academy of Actuaries warned in a recent webinar that rising Medicare spending poses a long-term challenge for the program. Increased enrollment, along with higher costs for Part B and Part D prescription drug coverage, are projected to push premiums sharply higher over the next decade.

• Part B premiums: $147/month in 2024 → $347/month by 2034
• Part D premiums: $34/month in 2024 → $51/month by 2034

These increases could significantly impact retirees living on fixed incomes. 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: Tort reform gains momentum as nuclear verdicts reshape liability exposure. Plus, employers navigate vaccine coverage confusion as the FDA changes COVID vaccine rules.

Tort Reform Gains Ground as Nuclear Verdicts Reshape Liability Landscape

The liability litigation environment is shifting as nuclear verdicts continue to surge and states roll out new tort reforms aimed at restoring balance, according to Sedgwick’s 2025 liability litigation trends report.

In 2024, nuclear verdicts against corporations hit record highs: 135 lawsuits resulted in awards of more than $10 million—a 52% jump from 2023. Altogether, these verdicts totaled $31.3 billion, marking a staggering 116% increase year over year. Read more here.

Employers Face Vaccine Coverage Chaos as FDA Sets New Rules for COVID Vaccines

Employers are facing fresh challenges when it comes to covering COVID-19 and other vaccinations. Last week, the U.S. Food and Drug Administration announced the end of emergency-use rules for COVID vaccines, including Novavax’s Nuvaxovid, while also tightening access guidelines for others. This shift complicates coverage requirements for employer health plans.

Even as wastewater testing indicates a new COVID wave—showing about 3.6 million new weekly infections in the U.S. and over 1,300 excess deaths—the FDA maintains that the pandemic emergency period has ended. Officials now say the current, lower level of risk no longer supports encouraging routine vaccination for healthy people under 65. Secretary of the U.S. Department of Health and Human Services Robert F. Kennedy Jr. appeared to imply in comments on X that working-age people with health problems, such as obesity, might be able to get COVID vaccine shots without a prescription, but that others might need a prescription. 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 Wisconsin insurance agent shares flood coverage insights, and new data confirms record-high federal lawsuit damages tied to “social inflation.”

Flood Victims Realize Insurance Won't Cover Damage, Insurance Agent Offers Tips

Following last weekend’s historic flooding, many Wisconsin residents are learning too late that standard homeowners policies don’t cover flood damage. Insurance agent Justin Staebler spoke with CBS58 Milwaukee, offering tips and stressing the importance of evaluating flood risk before disaster strikes.

Staebler noted that most homeowners opt out of flood insurance—often assuming it’s unnecessary—yet coverage costs can vary widely. His reminder: it’s worth considering the protection before you need it. Read more here.

Federal Lawsuit Damages Hit Record Highs as ‘Social Inflation’ Claims Gain Data Support

A new Lex Machina 2025 Damage Awards Report, analyzing more than 73,000 federal cases, reveals that average damage awards in 2023 and 2024 hit record highs. The findings provide data-backed evidence for insurance industry concerns over “social inflation”—the trend of rising litigation costs and jury awards.

The report highlights a sharp split in outcomes: jury verdicts have surged dramatically, while judicial awards have remained comparatively stable. 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.