HUB INTERNATIONAL 2026 NORTH AMERICAN REPORT: ONE-THIRD OF ORGANIZATIONS LACK MATURE RISK STRATEGY

Welcome to The Connected Podcast, your go-to source for the latest insights and developments in the insurance industry. Join us as we delve into a recent episode packed with valuable information for professionals navigating this dynamic ecosystem. We'll discuss key research findings, industry trends, and the transformative impact of technology and strategic collaborations.  In this episode, we explore crucial insights revealed in Hub International's 2026 North American Report, which highlights a concerning statistic: one third of North American companies lack a cohesive risk management strategy. This leaves them vulnerable to skyrocketing costs, cybersecurity threats, and regulatory pressures. Hub addresses this issue by introducing a Risk Management Maturity Model aimed at enhancing these strategies. Meanwhile, the Swiss Re Institute's report for Brokerslink investigates the global implications of U.S. trade dynamics on insurance. With a 15% effective tariff rate, the global property and casualty, as well as life premium growth, are predicted to decline significantly between 2025 and 2027, potentially driving up property and motor claims due to the increased cost of imported goods. We also hear from Paul Carroll, editor-in-chief at Insurance Thought Leadership, who challenges the industry narrative between grand transformation and imminent crisis, urging a balanced perspective to discern genuine transformation from exaggerated claims. We further delve into the role of artificial intelligence (AI) in the insurance sector, highlighted by a J.D. Power report that underscores a trust gap despite the general openness to AI technologies. While customers are comfortable with AI handling routine tasks like claims updates and billing, they express hesitation about its role in significant decision-making processes, illustrating that convenience does not always equate to trust. As we look towards 2026, the podcast discusses financial pressures in the industry, noting a significant rise in auto insurance premiums since 2020. Experts, including John Espenschied, suggest a possible reduction in premiums for top drivers driven by advancements in vehicle safety and business growth. However, concerns linger regarding tech repair costs and inflation. On the cybersecurity front, emphasis shifts towards building resilience over prevention to effectively manage AI-driven threats and ransomware tactics, urging strategic adaptation across the insurance sector. Turning our focus to the property and casualty insurance sector, we highlight the innovative strides made by SettleIndex, a UK-based startup now part of Guidewire's InsurTech Vanguards programme. This collaboration raises SettleIndex's industry profile by introducing tools for resolving high-value disputes through scientific modeling, enhancing claims accuracy and efficiency. Laura Drabik of Guidewire praises SettleIndex's transformative potential in claims processes.  In the automotive sector, we discuss S&P Global Mobility's report on how economic and geopolitical shifts are prompting automakers to reevaluate electric vehicle supply chains, aiming to reduce dependency on rare earth elements following China’s export restrictions.  In terms of insurance mergers, the upcoming union of the Baldwin Group and CAC Group is poised to create the largest majority colleague-owned, publicly traded insurance broker in the US with projected revenues surpassing $2 billion. This strategic merger, involving substantial financial dealings, aligns both entities for synergistic success, pending regulatory approval by 2026. The episode also centers around the burgeoning field of embedded insurance, anticipated to explode from $70 billion to over $700 billion by 2030, revolutionizing the personal lines market through seamless integration at