King Risk Acquisition, Blockchain Trends, Expected Premium Surges

Happy hump day !

This new election week we dive into the Blockchain insurance market. In an industry grappling with regulatory complexities and rising cybersecurity challenges, blockchain emerges as a transformative solution, addressing both with unprecedented efficiency and reliability.

The shift toward automated underwriting is transforming the insurance industry, with 85% of life insurers now adopting paperless processes

Insurers are anticipating strong premium growth in 2025, but, social inflation and storm activity could temper this momentum.

Best to another week navigating the ever-evolving insurance industry!

— Insurance 150 Team

In this Issue:

• Data Dive

• Trend of the Week

• Market Movers

• Insurtech Corner

• Deal of the Week

• Macroeconomics Corner

• Interesting Articles

• Tweet of the Week

📚 Data Dive

Chain Reaction: The Rise of Blockchain in Insurance Markets

The rapid growth of blockchain in insurance underscores its transformative potential, with applications ranging from smart contracts to enhanced cybersecurity.

Industry leaders like IBM, Deloitte, and Lemonade are setting benchmarks in leveraging blockchain for improved claims processing, fraud prevention, and operational efficiency. Despite challenges such as regulatory uncertainties and the need for system integration, blockchain is poised to address critical inefficiencies in the sector. 

As insurers increasingly incorporate blockchain with technologies like IoT and artificial intelligence, the synergy promises to revolutionize the industry. With blockchain-enabled solutions delivering cost savings of up to 25%, streamlined operations, and improved customer trust, the insurance sector is embarking on a new era of innovation that will shape its future competitiveness and resilience.

According to proprietary consensus estimates, the blockchain insurance market is projected to grow from just $0.6 billion in 2020 to a staggering $48.8 billion by 2030.

This remarkable expansion underscores the increasing adoption of blockchain solutions for claims processing, policy management, fraud detection, and customer service, as insurers embrace digital transformation to stay competitive in a rapidly evolving landscape.

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📈 Trend Of The Week

Growth Ahead: Insurers Brace for a Premium Surge

According to AON’s latest survey, insurers are anticipating strong premium growth in 2025. Nearly 70% of respondents expect increases of 6% or more, with specialty insurers remaining bullish due to momentum in the E&S market.

Personal lines insurers, driven by rising rates from inflation and catastrophic events, are the most optimistic, with 25% forecasting growth above 15%. However, social inflation and storm activity could temper this momentum. 

The verdict? Insurers are positioning for a favorable but challenging year ahead.

📊 Market Movers

🛡️ Insurtech Corner

Revolutionizing Insurance: The Impact of Automated Underwriting

The shift toward automated underwriting is transforming the insurance industry, with 85% of life insurers now adopting paperless processes and 77% utilizing automated systems for data requests and decision-making, according to a Novarica survey.

This technological leap is driven by varied motivations, including expense reduction, efficiency gains, and improved customer experience. Automation has enabled insurers to streamline operations while capturing new market opportunities, with agents seeing increased placement rates thanks to instant decisions.

For example, a U.S. insurer introduced a cloud-based automated underwriting platform, enabling rapid deployment of new life products and boosting agent satisfaction. Additionally, direct-to-consumer models are flourishing, with 2.7 billion internet users globally driving insurers to promise “policies in minutes,” showcasing the competitive edge of integrating automation into sales processes.

Automated underwriting delivers significant returns on investment, with insurers saving significantly on underwriting costs compared to traditional methods, as reported by the Society of Actuaries.

This efficiency translates into long-term payback potential; Celent studies indicate full implementation yields returns within 4-5 years. Beyond cost savings, automation enhances risk management, consistency, and scalability. By employing rules-based engines, insurers maintain underwriting philosophy across product lines while optimizing resources.

This approach ensures faster processing of simpler products like life insurance and critical illness policies, offering insurers a foundation to expand automation into more complex areas. With a projected annual growth in adoption, insurers are leveraging automated underwriting as a strategic tool to remain competitive, improve customer experience, and unlock new growth opportunities.

🤝 Deal of the Week

King Risk Partners Bolsters Its Florida Footprint

King Risk Partners has acquired Bruce Hendry Insurance, marking another strategic step in its aggressive push into Southwest Florida. The Immokalee-based agency has served the Florida market with tailored insurance offerings for individuals and businesses alike. This move follows King Risk’s recent acquisition of Viper Risk Management Group, signaling a clear focus on solidifying its presence in Florida’s bustling insurance sector. CEO Malcolm King emphasized that the partnership strengthens their position while delivering enhanced services to clients across the state. Bruce Hendry, the agency’s president, called the deal a win for customers, unlocking access to broader solutions.

🌎 Macroeconomics Corner

NAFTA: A Mixed Trade Legacy with Questions for the Future

NAFTA was supposed to turn the US-Canada-Mexico trade bloc into an economic juggernaut. The good news? It worked—at least initially.

US trade with both neighbors surged through the 1990s, especially with Mexico. But the party cooled in the 2000s: US-Canada trade shares dipped below pre-NAFTA levels, while US-Mexico trade gains held steady, albeit modestly.

The numbers show NAFTA wasn’t a perpetual motion machine for trade growth, but it did nudge the needle when the economy needed it. Post-2008 global trade shifts may have played a larger role in slowing momentum than the agreement itself. NAFTA’s 2020 reboot as the USMCA now carries the weight of reviving those promises​​.

With whispers of a second Trump presidency in 2025, could trade policies take another sharp turn? From tariffs to renegotiations, a return of his administration would likely test the durability of the USMCA and the future of North American trade. If reinstated, we could see a renewed emphasis on protectionist policies, potential disruptions in global supply chains, and a strategic push to renegotiate trade deals in ways that prioritize domestic manufacturing and economic nationalism.

📰 Interesting Articles

🐣 Tweet of the week