Severe storm losses stay above $50 billion for third year

The Connected Podcast: Navigating the Future of Insurance In this episode of The Connected Podcast, the discussion centers on key developments in the insurance ecosystem, highlighting severe storms as the primary drivers of insured disaster losses in the U.S. The Insurance Information Institute reports that since 2023, severe weather events have consistently caused damages exceeding $50 billion annually, with 2025 witnessing losses of $51 billion solely from these storms. Notably, the root causes of these losses extend beyond weather-related factors, as up to 90% of loss growth since 2000 stems from non-climate elements. These include factors like population growth in vulnerable regions, legal disputes, and rising labor and construction costs. Sean Kevelighan, CEO of the Insurance Information Institute, suggests a multifaceted approach to tackling these issues, advocating for legal reforms, strategic land use, resilient building practices, and innovative insurance solutions.   In legislative news, a proposed Senate Bill 1209 in California aims to enhance the authority of the state's Department of Insurance, allowing it to enforce compliance among insurers for violations found during regulatory exams. Currently, enforcement requires separate legal actions beyond the initial examination findings. However, eight insurance trade organizations argue that the bill might allow the Department to circumvent existing regulatory protocols, stressing that examination recommendations should be advisory rather than legally binding.   The segment also examines the expanding role of telematics in the U.S. insurance sector. Initially a niche innovation, telematics has become integral to underwriting, pricing, and customer engagement. The spread of smartphone-based solutions and advanced AI-driven models have eliminated adoption barriers and improved risk assessment accuracy. Significant investments, like those from Cambridge Mobile Telematics supported by Allianz and State Farm, underscore the industry's growth and consolidation. Insurers now focus on evaluating the strategic architecture of telematics platforms, considering how they might shape future outcomes beyond mere data and model accuracy.   In this episode of The Connected Podcast, the hosts explore recent technological and regulatory changes transforming the insurance industry. The episode highlights Vertafore's introduction of the Velocity AI Platform, designed to infuse AI into the core systems of agencies, MGAs, and carriers. This innovation is intended to improve Distribution Velocity by streamlining and optimizing insurance workflows, allowing the industry to enhance decision-making and relationship-building, according to CEO Amy Zupon.   The podcast also discusses a compelling study by the Claims and Litigation Management Alliance regarding the financial responsibility for AI tools used in defending liability insurance policyholders. The 2026 CLM Litigation Management Study shows a divide among executives, with half feeling law firms should cover these costs, and the other half undecided on the issue.   Additionally, Cloverleaf Analytics has launched its 2026 Insurance Decision Intelligence Platform, which aims to dramatically improve data processing and analytics timeframes, thanks to its sophisticated AI capabilities. This represents another significant advancement in the industry's ability to generate timely insights and optimize operations.   Lastly, the episode touches on regulatory updates from the U.S. National Association of Insurance Commissioners. Discussions focused on implementing the NAIC's Model Bulletin regarding AI usage by insurers and evaluating the AI System Evaluation Tool to aid regulators in understanding AI governance. This collaborative effort seeks to enhance regulatory processes and identify