Read our white paper, "The Ultimate Social Inflation Survival Guide," to understand the complexities of social inflation and learn effective strategies for insurers and corporate policyholders to navigate its challenges in today's economic landscape.

Read part two of our white paper to learn the components of environmental, social, and governance (ESG) and the impact on insurers and corporate policyholders under the second Trump Administration.

Explore the evolving insurance landscape and the implications of ESG changes under the second Trump Administration in part one of our white paper by Scott Seaman.

As we say goodbye to 2024, we are pleased to announce our 2024 Hinshaw Readers’ Choice Awards in the insurance category. The following are the Top 5 posts receiving the highest levels of engagement from our readers in 2024 on topics ranging from landmark U.S. Supreme Court rulings to projecting the potential industry impact of the 2024 U.S. elections.

The global Hinshaw Insurance Services group is pleased to offer a comprehensive analysis of significant insurance trends, regulations, and landmark case rulings in the United States in 2024 while also making prognostications about the industry landscape in 2025. Authored by Scott Seaman, Pedro Hernandez, and Lisa Roccanova, the white paper delves into several critical topics, including:

Per- and poly-fluoroalkyl substances ("PFAS") represent major exposures to insurers and their policyholders. Thousands of lawsuits are pending nationwide, and numerous large settlements have already been reached. Insurers are facing claims, tenders, and coverage actions from policyholders seeking defense and indemnity for PFAS-related claims. The plaintiffs' bar is focused on PFAS and views these so-called "forever chemicals" as a fertile source of lawsuits and large recoveries.

The results of the November 5, 2024, election in the United States will almost certainly have profound consequences within the country and across the globe. The election will surely impact policyholder exposures, insurer claim experience, investment activities, and underwriting activities in several respects.

On June 6, 2024, the United States Supreme Court issued its decision on an insurer’s standing in its policyholders’ Chapter 11 bankruptcy proceeding in Truck Exchange v. Kaiser Gypsum Co., 144 S. Ct. 1414 (2024). The decision represents a significant victory for insurers, affording them an opportunity to raise issues and participate in proceedings that may impact their interests. This decision resolves a split of authority and sends a clear message going forward.

On October 7, 2024, the Hawaii Supreme Court, responding to questions certified by the United States District Court for the District of Hawaii, determined that insurers had no duty to defend Aloha Petroleum ("Aloha") in two climate-change-related cases.

On July 11, 2024, the New York State Department of Financial Services (NYSDFS) adopted a final circular about the "Use of Artificial Intelligence ("AI") Systems and External Consumer Data and Information Sources in Insurance Underwriting and Pricing" (the "Circular").

In a trilogy of cases decided at the end of this term, the United States Supreme Court made significant changes to the administrative law terrain by:

Insurers are impacted in many ways by the United States (U.S.) Supreme Court decisions, but very rarely does the Supreme Court wade into decisions directly involving insurance contracts or the rights of insurers. This term, the Supreme Court has had several cases on its docket that affect insurers directly.  

On February 5, 2024, New York State Senator Hoylman-Sigal once again brought forth the Grieving Families Act ("GFA") in its latest iteration: Senate Bill 2024-S8485. Continue reading for how this latest version of the act would potentially impact New York wrongful death claims and filings.

The global Hinshaw Insurance Services group takes an in-depth look at key United States insurance trends and case decisions in 2023. Authored by Scott Seaman, Pedro Hernandez, and Lisa Roccanova, the white paper provides insight into the following topics and more:

On December 8, 2023, the California Privacy Protection Agency (CPPA) moved forward with an insurance regulation that could expand the privacy compliance obligations of insurance companies. The California Privacy Rights Act (CPRA) required the CPPA to undertake a rulemaking to identify what privacy gaps exist between the California insurance code and the California Consumer Privacy Act (CCPA), as amended by the CPRA. 

Rulings by the United States Supreme Court profoundly impact insurers as businesses and corporate citizens. Additionally, decisions from the U.S. Supreme Court can also influence claims and policyholders' liabilities for which insurers may be called upon to defend or provide indemnification. It is fairly rare, however, for the U.S Supreme Court to wade into the area of insurance contracts or rights of insurers directly. Nonetheless, the nation's high court has taken up two cases directly impacting insurers this term. 

On October 11, 2023, the U.S. Environmental Protection Agency (EPA) issued its final rule under the Toxic Substances Control Act (TSCA). The rule requires every company that manufactured or imported PFAS for a commercial purpose in 2011 or after to report PFAS data to the EPA within 18 months of the effective date of November 13, 2023.

Per and polyfluoroalkyl substances (PFAS) represent major exposures to insurers and their policyholders. Thousands of lawsuits are pending nationwide and several large settlements have already been reached. Insurers are facing claims, tenders, and coverage actions from policyholders seeking defense and indemnity for PFAS-related claims. The plaintiff's bar is focused on PFAS and views these so-called forever chemicals as a fertile source of lawsuits and large recoveries. Though late to the game, federal and state regulators are now locked and loaded on regulating these substances in significant ways. Whether or not PFAS-related liabilities present losses to the insurance industry that will rival asbestos-related liabilities remains to be seen. Nonetheless, insurers are preparing for numerous claims and large losses. In this article[i], we provide some background on PFAS exposures and identity some of the many coverage issues that may be presented in PFAS-related coverage litigation. 

A significant number of states prohibit or restrict the arbitration of disputes between an insurer and its policyholder and/or preclude the inclusion of arbitral provisions in insurance policies.[i]The McCarran-Ferguson Act ("MFA")[ii]is a federal statute that generally precludes an "Act of Congress" from preempting state statutes involving the business of insurance.[iii]The Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958, commonly known as the New York Convention (the "Convention"), is a treaty of the United States and the foundation of the international system of arbitration. Its enabling legislation is Chapter 2 of the Federal Arbitration Act ("FAA Chapter 2").[iv]However, the federal Circuit Courts of Appeals are split about whether MFA reverse-preempts the Convention.[v]The First, Fourth, Fifth, and Ninth Circuits have held that the Convention preempts MFA while the Second and Eighth Circuits have held that the MFA reverse-preempts the Convention.[vi]The Supreme Court may decide to resolve this split of authority in the future, but that is a discussion for another day.

A new Illinois law that aims to increase jury awards demonstrates that juries are not the only culprits of social inflation. Certainly, juries can render nuclear and thermonuclear verdicts, disregard jury instructions, place notions of ability to pay above fundamental concepts of fault and causation, and rely upon information other than admissible evidence in rending verdicts. However, judges and legislative bodies also are responsible for nuclear verdicts and social inflation, via improper and ill-conceived legal and evidentiary rulings and nuclear legislation.  See S.M. Seaman and J.R. Schulze, Allocation of Losses in Complex Insurance Coverage Claims (11th Ed. Thomson Reuters 2023) at Chapter 19; S. Seaman, "Updated Social Inflation Survival Guide: The Dangerous Triple Barrel Threat of Social Inflation, Economic Inflation, and Greenflation in a Judicial Environment Swarming With Reptiles and Raining Nuclear Verdicts"J.D. Supra (May 2, 2023).