Legal system abuse and climate risk resilience are the top issues for the property/casualty (P/C) industry in 2025, with an excessive volume of litigated claims and severe weather event losses driving up costs for carriers and policyholders, according to Triple-I CEO Sean Kevelighan. He was among several senior executives that provided insights on industry trends for Insurance Journal.
The big picture: In addition to these issues, artificial intelligence (AI) promises to revolutionize the insurance industry, but the path forward on how insurers will embrace generative AI is uncertain, Kevelighan said.
Highlights of Kevelighan’s commentary:
Impacts of legal system abuse: “Fraudulent or unnecessary litigation racks up attorney and court fees that increase costs for insurance operations and policyholder pricing. Industry analysts have attributed rising claim costs to specific litigation trends and practices, such as an increase in outsized verdicts (typically defined as awards exceeding $10 million), claims filing tactics, and third-party funding of lawsuits.”
Climate risk resilience: “More homes and businesses are being built in harm’s way and replacement costs are increasing faster than overall inflation. Risk transfer is essential, but just one tool in the resilience toolkit alongside risk modeling, technology, public policy, finance and science. We need to drive behavioral change to help people and communities better manage risk and become more resilient.”
Impacts of generative AI: “Generative AI goes beyond predicting – it generates new data as its primary output. As a result, it can support strategy and decision-making through conversational, back-and-forth ‘prompting’ using natural language, rather than complicated, time-consuming coding.”
- Kevelighan noted that a recently published report by Triple-I and SAS addresses how insurers are uniquely positioned to advance the conversation for ethical AI.