Insurance Mergers and Acquisitions Hold Steady in 2024
Despite a slight decline in overall insurance M&A activity, the industry remains at pre-pandemic transaction levels, signaling a resilient and evolving marketplace. According to a recent OPTIS Partners report, 750 insurance agency mergers and acquisitions were announced in 2024, a 10% drop from the 833 recorded in 2023. However, activity picked up in the latter half of the year, with a 21% increase over the first half, demonstrating sustained investor confidence. “The M&A market remains stable, with no rush to close year-end deals for the second consecutive year,” said Tim Cunningham, managing partner of OPTIS Partners. “We anticipate more large-scale transactions in the next 12 to 24 months, as firms continue to seek growth through strategic acquisitions.” What This Means for Skyscraper Insurance At Skyscraper Insurance, we understand the impact of these market shifts and remain committed to delivering top-tier risk management solutions. As industry giants consolidate, we continue to prioritize personalized service, innovative coverage solutions, and strategic growth to better serve our clients. Key 2024 Transactions ✅ AON Acquires NFP – AON completed a $13 billion deal to acquire NFP, a firm with $2.2 billion in revenue.✅ Marsh McLennan Expands with McGriff Insurance Services – A $7.75 billion acquisition strengthens Marsh’s footprint.✅ Arthur J. Gallagher Secures AssuredPartners – A $13.45 billion agreement set to finalize in early 2025. As major players reshape the landscape, Skyscraper Insurance remains a trusted partner for businesses navigating today’s complex risk environment. Our expertise in risk management and tailored insurance solutions ensures that clients continue to receive industry-leading protection. #WeShareYourVisionForABetterTomorrow#SkyscraperInsurance #RiskManagement #MergersAndAcquisitions #InsuranceIndustry
California Wildfire Relief: A Collaborative Effort by Lawmakers and Insurance Leaders
California’s recent wildfires have highlighted the urgent need for action to address the growing insurance challenges in the state. With insured losses estimated at $30 billion, leaders are working tirelessly to provide relief and ensure resilience. Protecting Policyholders Amid Wildfire RisksCalifornia Insurance Commissioner Ricardo Lara has taken swift action, issuing a one-year moratorium on insurance companies canceling or non-renewing residential policies in wildfire-affected areas. Additionally, those who received non-renewal notices within 90 days before the fires are now protected.“If you’ve received a non-renewal notice between October 9 and January 7, your insurer should retain you as a valued policyholder,” Lara emphasized during a press briefing. Lara also proposed a future grant program to assist low-income homeowners in reducing wildfire risks by installing fire-resistant roofs and creating defensible spaces around their homes.“This initiative is crucial for protecting homes and building long-term resilience,” he noted. Legislative Action for Stability and Faster ClaimsCalifornia lawmakers introduced the FAIR Plan Stabilization Act, aiming to bolster the California FAIR Plan with catastrophe bonds to address potential liquidity shortfalls. Speaker of the Assembly Robert Rivas also announced plans to advance legislation that would streamline insurance claims for homeowners affected by the wildfires. The Financial Toll and Industry ResponseAccording to Wells Fargo Securities, insured losses from the wildfires are projected at $30 billion, with homeowners’ insurance accounting for 85% of those losses. High-value properties and extensive damage underscore the financial strain, as the Palisades Fire alone has burned over 23,000 acres and destroyed 4,500 buildings. Despite the magnitude of the disaster, industry leaders assure Californians that the insurance sector is equipped to handle the recovery. Sean Kevelighan, CEO of the Insurance Information Institute (Triple-I), affirmed that “all claims will be covered, whether through private insurers or the California FAIR Plan.” A Call for Resilience and ReformThe devastating wildfires serve as a wake-up call for California to rethink its preparedness and insurance strategies.“This catastrophic event underscores the need for greater resilience,” Kevelighan said. “It’s time to reevaluate how we manage risks and sustain a functional insurance market in this state.” At Skyscraper Insurance, we are committed to supporting our clients in navigating these challenges, ensuring access to reliable coverage, and fostering resilience for the future. Together, we can weather any storm. #WeShareYourVisionForABetterTomorrow
How to Optimize Commercial Lines Insurance for Your Business in 2025
The landscape of small-to-medium commercial insurance has experienced steady growth in recent years. With global property and casualty premiums growing at an annual rate of 6-8% since 2018, the commercial lines sector has emerged as a critical area of opportunity. Factors driving this expansion include hardening market conditions, insurer exits from states like Florida and California, and a rising need for tailored coverage solutions to address unique risks. At Skyscraper Insurance, we recognize the importance of adapting to these market dynamics and providing our clients with tools and strategies to thrive. Here’s how businesses can make commercial lines insurance work smarter for their needs. The Power of Diversification Expanding into commercial lines is a proven way to increase profitability while mitigating risks. By offering cross-sector solutions — from specialized liability to industry-focused coverage — businesses can grow their client base while addressing underserved needs. Skyscraper Insurance makes this transition seamless, providing expert guidance and comprehensive options to diversify your portfolio effectively. Streamlining Quoting Processes Traditional quoting methods can be labor-intensive and error-prone, deterring many agencies from fully exploring the potential of commercial lines. With advanced technology, Skyscraper Insurance simplifies this process. Our integrated tools allow businesses to enter data once and receive competitive quotes from multiple carriers in minutes, ensuring clients receive the best possible options while saving time and reducing administrative burdens. Reducing Errors Through Automation Human errors in data entry can disrupt workflows and introduce risks. By leveraging cutting-edge automation solutions, Skyscraper Insurance ensures data accuracy across platforms. Our systems seamlessly integrate with agency management tools, minimizing redundancies and enabling faster policy renewals and claims processing. Embracing a Connected Future Commercial lines insurance offers vast opportunities, but success hinges on embracing digital transformation. Skyscraper Insurance provides the tools needed to connect management systems, automate renewals, and streamline carrier relationships. By adopting our “one-to-many” quoting model, businesses can optimize efficiency, improve client satisfaction, and drive profitability. Partnering with Skyscraper Insurance In a competitive and evolving market, having a trusted partner makes all the difference. At Skyscraper Insurance, we empower our clients with tailored solutions, innovative technology, and industry expertise. Whether you’re expanding your book of business or exploring new opportunities in commercial lines, we’re here to help you navigate the complexities of 2025 and beyond.
Rising Risks in D&O Insurance: Preparing for 2025
As businesses navigate an increasingly complex landscape, directors and officers (D&O) insurance is facing heightened risks and emerging challenges. A report from Allianz Commercial highlights several key areas that demand attention from D&Os as they approach 2025: 1. Global Exposure 2. Privacy-Related Claims 3. Geopolitical Uncertainty 4. Artificial Intelligence Risks 5. Rising Business Insolvencies Proactive Risk Management is Key With these rising risks, companies and their leadership must adopt proactive strategies, including enhanced policy reviews, frequent training, and robust internal governance structures, to stay protected. Skyscraper Insurance is committed to helping clients navigate these challenges with tailored D&O insurance solutions that provide comprehensive coverage in a volatile world.
Home Improvement Alert: Are You Properly Insured?
As homeowners embark on major renovation projects, they may unknowingly expose themselves to significant financial risks by not updating their insurance policies. A recent survey by Nationwide highlights this growing concern, revealing that many homeowners complete substantial upgrades without adjusting their coverage. Key Findings: Popular Projects and Costs: Financial Implications: Empty nesters, in particular, are pouring more resources into high-value upgrades. For example: Expert Insight: Casey Kempton, President of Nationwide’s P&C Personal Lines, emphasizes the importance of revisiting insurance coverage:“Every homeowner should review their home insurance coverage with their independent insurance agent regularly to avoid potential gaps.” Protect Your Investment: At Skyscraper Insurance, we understand the complexities of home improvements and their impact on insurance. Whether you’re adding a new room or upgrading your kitchen, our experts can help ensure you’re fully covered. Don’t leave your dream home unprotected! Contact us today for a free consultation to safeguard your renovations and future.#SkyscraperInsurance #HomeRenovations #StayCovered #RiskManagement
Thanksgiving 2024 Fire Prevention Tips: Ensuring Safety in the Kitchen
As Thanksgiving approaches, millions of Americans will gather around the table to celebrate, with home-cooked meals taking center stage. While the rise in food prices has been significant, the holiday still remains the largest food celebration of the year, with over $2.4 billion in food sales recorded in 2023. However, as many people focus on preparing their meals, it’s important to remember that Thanksgiving also comes with an increased risk of home cooking fires. According to the National Fire Protection Association (NFPA), on Thanksgiving Day alone, an estimated 1,610 cooking fires were reported in 2022— a 399% increase compared to the daily average. The leading cause of these fires is unattended cooking. Distractions such as TV football games or playful children can easily divert the cook’s attention, leading to potential hazards. Here are some essential tips from the NFPA to ensure a safe and enjoyable Thanksgiving holiday: 1. Stay in the Kitchen While Cooking Whether you’re making mashed potatoes or preparing a turkey, always stay in the kitchen when cooking on the stove. Keeping an eye on your food prevents it from burning or catching fire. 2. Monitor the Turkey Don’t leave your turkey unattended, especially if you’re using a fryer. It’s important to stay in the house and check on it periodically. Overheated oils or fats can catch fire, so make sure to stay vigilant. 3. Keep Children Safe Children should stay at least three feet away from the stove to avoid burns from hot surfaces, steam, or splashes from hot liquids. Additionally, knives and cooking utensils should be kept out of their reach to prevent accidents. 4. Secure Electrical Cords Electric cords from appliances such as electric knives, mixers, or coffee makers should not dangle off counters where children can reach them. These cords pose a risk of electrical shocks or burns. 5. Keep Matches and Lighters Out of Reach Matches and utility lighters should always be stored in a safe place, such as a high locked cabinet, away from curious little hands. 6. Candle Safety Never leave children alone in a room with a lit candle. Candles can easily be knocked over, causing fires, especially when left unattended. 7. Clear the Floor A clear floor is a safe floor. Be mindful of potential tripping hazards such as toys, bags, or loose clothing, which can cause falls, especially when moving around the kitchen. 8. Check Your Smoke Alarms Before you begin cooking, make sure your smoke alarms are functioning properly. A quick test of the smoke alarm can provide peace of mind in case something goes wrong. 9. Engage Kids with Kitchen Activities While it’s important to keep kids out of the kitchen during busy cooking times, consider engaging them with Thanksgiving-themed activities outside of the kitchen. Allow them to help with non-cooking tasks like setting the table or decorating. By following these fire prevention tips, you can ensure a safer Thanksgiving while still enjoying the holiday traditions. Stay mindful of safety in the kitchen and let the focus remain on what truly matters—celebrating with family and friends. #Thanksgiving2024 #FirePrevention #SkyscraperInsurance #SafetyFirst #WeShareYourVisionForABetterTomorrow
Top 10 U.S. Cities for Wealthy Insurance Client Prospecting
With the 2024 U.S. general election behind us, inflation and economic factors remain in the spotlight as influential drivers of the national landscape. Despite some signs of slowing, consumer prices in the U.S. and globally continue to trend upward in key areas such as groceries, clothing, and car insurance. According to recent data from the Bureau of Labor Statistics, inflation eased to 2.4% in September. Yet many Americans, especially those in working and middle-income brackets, still face financial pressures. Nonetheless, the U.S. remains a premier destination for millionaires globally, with around 22 million residing in the nation, representing 38% of the world’s millionaire population, according to UBS’s Global Wealth Report 2024. A recent study by property management firm Evernest highlights the wealth distribution in major U.S. metropolitan areas, noting that the country’s richest cities are spread across diverse regions—not just in traditionally affluent hubs. Evernest analyzed key indicators across 45 metropolitan areas, including income levels, cost of living, homeownership rates, and the percentage of households with $1 million or more in investable assets. In the insurance industry, individuals with $1 million+ in investable assets are often referred to as “high-net-worth” clients. These clients require a more personalized and consultative approach in their insurance needs, which extends beyond standard policies to protect unique assets and lifestyle choices. Diane Delaney, executive director of the Private Risk Management Association, recently emphasized this in an episode of Insurance Speak, underscoring the importance of a human touch and deep understanding in catering to these clients. For insurance professionals, these top cities present an invaluable opportunity to meet the needs of high-net-worth clients with customized, expert solutions.
InsurTech Priorities for 2024 and Beyond
As we head into 2024, the tech sector is experiencing a shift in focus amid an evolving market landscape. The past few years saw a talent boom with a surge in funding and hiring, leading to widespread workforce changes known as the “Great Resignation.” But recent economic conditions have altered the playing field significantly, with over 86,000 tech layoffs reported in 2024 alone. Now, companies must balance the high cost of operations with new challenges in talent retention and risk management. People, Prices, and Pressures in Tech Managing cash flow has become a top concern for many tech companies. Rising costs and inflation are making it challenging for organizations to sustain growth, with 59% of tech leaders reporting struggles in managing these financial pressures. Interestingly, only 20% are prioritizing funding this year, while 43% are concentrating on increasing revenue through enhanced sales initiatives. This pivot towards financial stability reflects a broader industry sentiment, with over three-quarters of tech firms expressing optimism about market recovery and the potential for growth in product development and automated processes. The Path Forward: Enhancing Risk Management To remain resilient, many tech companies are re-evaluating their approach to risk. While two-thirds of organizations have adopted new risk mitigation strategies, a significant portion is still determining the best path forward. Here are four key strategies that tech firms can consider to strengthen their risk management framework: Looking Ahead: Opportunities Amid Uncertainty Despite current challenges, tech companies are positioning themselves for future success. Economic conditions are stabilizing, interest rates are anticipated to ease, and revenue growth is expected to improve retention rates. By enhancing risk management practices and focusing on strategic growth areas, tech companies can navigate uncertainty with greater confidence and lay a strong foundation for sustained innovation. Ben Jennings, CEO of Embroker, highlights the critical role of innovative insurance solutions in supporting businesses of all sizes and driving future growth in InsurTech. With over 25 years of industry experience, Jennings brings a wealth of expertise in aligning technology and insurance to meet the evolving needs of modern businesses.
California’s Cannabis Growers Struggle to Find Insurance Amid Rising Wildfire Risks
In California’s wildfire-prone regions, cannabis farmers face unique challenges in securing insurance for their high-value operations. Cannabis, despite its booming $5 billion industry within the state, remains federally classified as a Schedule I substance, preventing many conventional insurance providers from covering the crop. The Wildfire Risk Impacting California’s Emerald TriangleIn areas like Humboldt, Mendocino, and Trinity counties — collectively known as the Emerald Triangle — cannabis cultivators face increased risk. With wildfire seasons growing longer and more intense, even established insurers like State Farm are withdrawing from the market, leaving properties uninsured and at risk. Farmers like Hannah Whyte, whose farm produces up to 1,600 pounds of cannabis annually, have become “uninsurable” under traditional and state-created plans due to federal restrictions. The FAIR Plan’s Limited Options for Cannabis FarmersCalifornia’s FAIR Plan, established to help provide coverage for high-risk properties, excludes cannabis farms, citing federal restrictions. Cannabis growers must either forgo insurance altogether or attempt to cover their farms in other ways — a choice that presents significant risk, especially as wildfires continue to escalate. Regulatory Hurdles and Cost ConcernsEven where insurance is available, premiums for cannabis growers are notably higher than other agricultural sectors, and policies may require additional, costly coverage beyond wildfire protection. Michael Polson, of UC Berkeley’s Cannabis Research Center, highlights that these challenges often stem from policy restrictions on where cannabis farms can be located, placing many within high-risk zones. A Call for Change in Cannabis CoverageAlthough regulatory steps, such as California’s 2022 law allowing insurers to provide cannabis coverage without facing criminal charges, have improved the landscape, the demand for further reform persists. Former insurance commissioner Dave Jones has advocated for expanding the FAIR Plan to include cannabis-related risks, noting that these farmers are essential contributors to California’s economy. As Skyscraper Insurance strives to support a diverse range of clients facing unique challenges, these issues underscore the importance of continually adapting our insurance solutions. At Skyscraper, we aim to work closely with top underwriters and industry leaders to craft comprehensive solutions, even as the landscape of cannabis insurance evolves.
Election Day in the U.S.: Business Preparedness and Insurance Considerations
As Election Day unfolds, businesses across the U.S. may face uncertainties due to the political climate. The Council on Foreign Relations (CFR) notes that election results could lead to heightened community unrest, especially if the outcome is not immediately clear. During times like these, Skyscraper Insurance stands ready to help businesses navigate potential risks, offering insurance guidance that adapts to both the regulatory landscape and the unique concerns of each business. Potential Risks and Insurance Coverage:Given recent events, some businesses are evaluating their policies to ensure coverage for unexpected risks. At Skyscraper Insurance, our clients benefit from our experience in addressing varied claims, particularly in commercial property and liability coverage that includes scenarios such as riots, vandalism, and civil commotion. Many commercial property policies include protection for physical damages and even business interruption losses when caused by covered events, helping businesses to maintain operations even in uncertain times. Preparing for Workplace Dynamics:Election results can sometimes lead to heightened emotions within the workplace. Skyscraper Insurance emphasizes the importance of clear policies and insurance solutions like Employment Practices Liability Insurance (EPLI), which can cover specific claims related to workplace disputes, ensuring that businesses are prepared to handle any challenges professionally and equitably. Skyscraper’s Comprehensive Approach:As always, our mission is to be proactive and prepared. We’re committed to guiding our clients through risk assessments and policy evaluations to ensure they have the right coverage in place for any eventuality. In an unpredictable world, Skyscraper Insurance provides stability, security, and the expertise to help our clients feel covered in every season. If you have questions about your current coverage or would like to explore new options to fit today’s changing world, reach out to our team today. At Skyscraper Insurance, We Share Your Vision for a Better Tomorrow.