The insurance industry and public sector both play a critical role in helping to mitigate risk for customers and constituents. But, as costs to insure property and long-term care in the U.S. rise, states increasingly become the insurers of last resort.

In this Insurance News Analysis, we focus on the U.S. market and the areas of risk that more states are assuming. There has been a lot of news about the role of the public sector in property risk—especially after Hurricane Ian left many customers in Florida questioning how wind and flood damage would be covered. As we begin Atlantic Hurricane Season 2023, we talk about what forecasters are predicting and how insurers can help customers to understand their risks and how coverages are provided.

States are also assuming a bigger role in risks beyond property. The State of Washington just launched its public long-term care program, and Missouri and California are poised to follow. We discuss what this means for customers and the long-term care products the industry has traditionally offered.

We also talk about the data insurers are using to better understand the risks their customers face. There are moves at the state level to limit what kinds of data carriers can use to underwrite and price risk. We consider what impacts such limitations may have as insurers augment the workforce with AI capabilities.