Winter Storm Fern to Cost $4B to $6.7B in Insured Losses: KCC, Verisk

The Connected Podcast: News and Events in the Insurance Ecosystem The Connected Podcast: News and Events in the Insurance Ecosystem In this segment of The Connected Podcast on news and events in the insurance ecosystem, the discussion begins with the financial implications of Winter Storm Fern, which resulted in insured losses reaching $6.7 billion according to KCC, making it one of the costliest winter storms in U.S. history. The storm's severe weather conditions impacted approximately 200 million people, with significant damage to residential, commercial, and industrial properties. Notably, there is a variance in loss projections, with Verisk estimating losses up to $4 billion, attributing most damages to freeze impacts.   The podcast then shifts to examining evolving weather patterns and their impact on the insurance industry. Aon’s Climate and Catastrophe Insight report highlights that severe convective storms have overtaken tropical cyclones as the greatest insured peril of this century. In 2025, these storms caused $61 billion in global insured losses, emphasizing a crucial need for the industry to adapt to these high-frequency, high-impact natural disasters.   Lastly, the segment discusses a concerning trend in the housing market: the rise in late-stage mortgage delinquencies. An 18.6% increase in delinquencies of mortgage payments over 90 days past due was noted, with mortgage delinquencies outpacing other consumer credit sectors. This has prompted some homeowners to sell properties quickly for cash to avoid further financial strain, reflecting the broader financial pressures reshaping the real estate market.   In the latest episode of The Connected Podcast, the discussion centers on a significant shift in the global insurance landscape, particularly in the property-and-casualty domain. After years of high premiums, multinational companies experienced rate reductions in 2025, with most business lines seeing double-digit percentage decreases, except for US casualty. These reductions come as insurers like AIG, Allianz, and Chubb benefit from stable insured losses despite past catastrophic events, allowing them to release reserves and adopt competitive pricing.   The renewal of reinsurer commitments plays a crucial role, providing industry stability and encouraging insurers to expand, resulting in a 'feeding frenzy' for market share. Mild global weather last year also contributed positively to this pricing environment, though there remains caution over future volatility.   The podcast also delves into personal insurance lines through the story of William May, who faced challenges with State Farm post-L.A. wildfires. His experience raises concerns about AI in insurance, particularly tools like Verisk's Xactimate, which May argues undervalue properties, impacting claims settlement.   In a forward-looking segment, the episode highlights MGT's partnership with Amwins to revolutionize the Excess & Surplus insurance market through AI-powered technologies. This collaboration aims to enhance efficiency and precision, demonstrating a future where AI not only streamlines processes but also improves client relations and market competitiveness, as highlighted by Ben Sloop of Amwins.   In this segment of The Connected Podcast, the discussion revolves around recent developments and challenges within the insurance ecosystem. The podcast highlights the inefficiencies in claims operations due to manual document triage, such as downloading and uploading documents, which are being addressed by the i