CONTENTS

THE EVOLUTION OF COMMERCIAL RISK

Pages

28-43

In this section,

Best’s Review

examines some of the

commercial risks facing businesses and insurers in 2025.

Best’s Review

looks

at risks such as third-party litigation funding, artificial intelligence, cyber, carbon credit fraud and chemical liability.

Best’s Review

also includes an excerpt of an AM Best report on its inaugural cyber questionnaire.

Page

28

Insurers, Buyers Face New Challenges With Emerging Commercial

Risks in 2025

Political change, artificial intelligence and cyber are among the many

risks insurers and their clients face in 2025, companies say.

Page

34

Betting on American Justice: Lawmakers, Regulators Target Third-

Party Litigation Funding

Debates are continuing over how to address third-party litigation

funding, with the federal and some state governments taking steps to

curb social inflation.

Page

36

Page

40

Marsh’s Quintal and We2Sure’s Wigzell: Insurance Facility Tackles

Carbon Credit Fraud Risks

A new insurance facility can help businesses address the growing risk of

counterfeit certificates and nonexistent projects, Jackie Quintal, managing

director of Marsh McLennan’s Financial Institutions Group, and Simon Wigzell,

co-founder and chief underwriting officer of We2Sure, told AM Best TV.

Chemical Liability Is Seen as an Emerging Risk Every Business Must

Tackle and Manage

Insurers are addressing the growing legal risks of “forever chemicals”

exposure as well as evolving regulations and the need for proactive risk

management, said Grant Nichols, senior vice president at CAC Specialty.

Page

43

Cyber Insurance Survey Highlights Systemic Risk, Particularly on

SMEs

AM Best, which sent its cyber questionnaire to the largest cyber insurers

globally, summarizes the 41 responses received in the report.

ISSUES & ANSWERS

Page

17

Page

19

Evolution of Risk

John Lopes, executive vice president, Nationwide Alternative Ventures and Emerging Markets,

said that given the size and scope of the company, Nationwide is one of the most diversified

carriers in the U.S.

The Strategic Advantages of Captives

Aaron Hillebrandt, principal and consulting actuary, Pinnacle Actuarial Resources, said

diversification of risk is important—and a great strategy.

2

LIFE MUTUALS

Page

20

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New York Life, Other Mutual Life Insurers See Value in Boosting 2025 Dividends

New York Life declared a record-high dividend of $2.5 billion payable to participating policy owners in

2025 and has paid out more than $1 billion in annual dividends every year since 1990.

Iowa Symposium Oers Networking Opportunity

he 11th Annual Global Insurance Symposium,

scheduled for April 15-16 in Des Moines,

Iowa, is expected to bring together more than 500

insurance and financial services industry executives,

regulators, insurance professionals, and startups for

an educational and networking opportunity as well

as the chance to discuss key issues.

Agenda items for the event include technology,

litigation, risk protection, international

opportunities, pension risk transfer, captive

insurance, and promoting resilience and closing

protection gaps to address extreme weather events.

Executives from Abacus Life, Guy Carpenter, Sola

Insurance, MassMutual, and Northwestern Mutual

are among the scheduled speakers, who also include

attorneys, regulators and other service providers.

The symposium also will feature its first “Future

of Insurance Showcase” for startups to present

their products and services to attendees as well as

T

its annual Student Case Study Competition. This

year, participants are asked: What trends present the

greatest opportunities for growth in the insurance

industry, and how can insurers effectively leverage

these trends?

“The Global Insurance Symposium is a must-

attend event for everyone in the finance and

insurance sector looking to dive deeper into trends

in the industry,” Iowa Insurance Commissioner

Doug Ommen said in a statement. “It’s an

opportunity to expand your network on a global

scale as the event provides attendees with insights

from across the world right here in Iowa.”

Julie Pearce, consultant at the Iowa Department

of Insurance & Financial Services, and Christian

Walk, senior vice president and associated general

counsel for Global Atlantic Financial Co., will

co-chair the symposium. AM Best, a symposium

sponsor, also will attend the event.

4

April Insurance Industry Events

April 1-2:

Cyber Risk & Insurance Innovation

USA,

Chicago, Illinois.

April 2:

Zywave 2025 Cyber Risk Insights – London,

England, United Kingdom.

April 2-3:

InsurTech NY 2025 Spring Conference,

New

York, New York.

April 2-4:

American Agricultural Insurance Company

(AAIC) Farm Bureau Commercial Conference,

Steamboat Springs, Colorado.

April 3:

Insurance Bureau of Canada (IBC) InSight

Summit 2025,

Toronto, Ontario, Canada.

April 3-4:

National Association of Subrogation

Professionals (NASP) Spring Meeting,

Nashville,

Tennessee.

April 7-10:

Verisk Insurance Conference 2025,

Orlando,

Florida.

April 10:

AM Best’s Insurance Market Briefing - Algeria,

supported by the Algerian Union of Insurance and

Reinsurance Companies (UAR), Algiers, Algeria.

April 10-11:

Cayman International Reinsurance

Companies Association (CIRCA) ReConnect,

Grand

Cayman, Cayman Islands.

April 13-16:

Inland Marine Underwriters Association

(IMUA) 94th Annual Meeting,

Bonita Springs, Florida.

April 14-16:

MedicareCon,

Orlando, Florida.

April 15-16:

Pennsylvania Association of Mutual

Insurance Companies (PAMIC) Claims Summit,

Lancaster, Pennsylvania.

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April 15-16:

11th Annual Global Insurance Symposium,

Des Moines, Iowa.

April 16-17:

Moroccan Insurance Federation (FMA)

Rendez-Vous de Casablanca de l’Assurance,

Casablanca, Morocco.

April 23:

Axco Global Insurance Summit,

London,

England, United Kingdom.

April 23-25:

LIMRA 2025 Workplace Benefits

Conference,

Boston, Massachusetts.

April 24-27:

National Council of Insurance Legislators

(NCOIL) Spring Meeting,

Charleston, South Carolina.

April 25-28:

2025 Aviation Insurance Association (AIA)

Conference,

Orlando, Florida.

April 27-29:

American Property Casualty Insurance

Association (APCIA) Human Resources Conference,

Napa, California.

April 28:

Connecticut Captive Insurance Association

(CTCIA), Connecticut Insurance Department (CID) and

InsurTech Hartford’s Connecticut Captive Insurance

Forum,

Hartford, Connecticut.

April 28-29:

Worldwide Business Research (WBR)

Digital Insurance Summit,

Boston, Massachusetts.

April 28-30:

Global Reinsurance and the Dubai

International Financial Centre Authority’s Dubai

World Insurance Congress (DWIC),

Dubai, United Arab

Emirates.

April 29-30:

InsurTech Hartford 2025 Symposium,

Hartford, Connecticut.

Best’s Calendars

Lloyd’s To Welcome New Chief Financial Officer as Former CFO

Moves Into Strategic Adviser Role

Zurich NA names chief data officer, Ryan Specialty International taps general

counsel and HDI Global appoints chief operating officer for UK and Ireland.

loyd’s appointed Alexandra Cliff to succeed Burkhard

Keese as chief financial officer, effective May 1, and

subject to regulatory

approval.

Keese, following a long-

established succession

plan, will leave Lloyd’s to

focus on investment roles

in the German insurance

market. He will remain a

strategic adviser to Lloyd’s

and will focus on the

development of the risk

transfer vehicle London

Bridge 2, the company

said.

Keese joined Lloyd’s

in 2019 and, during his time as CFO, has been at the

forefront of the significant performance turnaround of

the Lloyd’s market, and in the strengthening of its balance

sheet, it said. He also has advanced Lloyd’s position as

L

Alexandra Cliff

an attractive and accessible market for global investors

to place their capital through London Bridge 1 and 2,

according to a company

statement.

Cliff joined Lloyd’s as

deputy CFO in November

2022 and currently serves

on Lloyd’s executive

committee. She has

more than 20 years of

experience in the insurance

industry, having held

senior finance roles in

insurance and broking

firms including Direct Line

Group, StarStone, and

AJ Gallagher. Cliff is a

chartered accountant and spent eight years at PwC in

both London and the United States, the company said.

—Staff Report

Burkhard Keese

6

Nationwide Financial President and COO To Retire

N

ationwide Financial announced that John Carter,

president and chief operating officer, plans to retire

at the end of 2025, after a 40-year career in the financial

services industry, 20 of those years at Nationwide.

Under Carter’s

leadership, Nationwide

Financial grew 62%

since 2019. The firm also

forged relationships with

a broad network of some

of the largest distribution

partners in the industry.

In the past five years, the

firm has modernized its

core business systems,

expanded and deepened

distribution relationships,

and launched new and

innovative solutions. More

than 25% of NF’s sales are through businesses, solutions

and partnerships that did not exist five years ago, the

company said in a statement.

John Carter

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Carter joined Nationwide in 2005 as president of

Nationwide Financial sales and distribution. He became

president of the Nationwide Retirement Plans business in

2013 and was named president and COO of Nationwide

Financial in 2019. Prior to Nationwide, Carter worked in

leadership positions at Prudential Financial, UBS and

Kidder Peabody, the company said.

AIG Names EVP-CEO International Commercial

Insurance & Global Personal Insurance

A

merican International Group Inc. said Jon Hancock

will take on additional responsibilities as it organizes

its business into three distinct segments: North America

commercial insurance, international commercial

insurance, and global personal insurance.

Hancock’s new title will be executive vice president,

chief executive officer, international commercial

insurance and global personal insurance.

In his new role, Hancock will continue to lead the

international commercial insurance business and will

assume additional responsibility for the newly formed

global personal insurance business, which brings

Executive Changes