The alleged scheme ran from 2018 to 2023, racking up tens of millions of dollars in fraudulent no-fault medical claims billed to insurance companies.

The arrest of Petrosyants—described by media as a restaurateur and a close friend of former New York City Mayor Eric Adams—comes amid Albany lawmakers’ tense budget negotiations, where proposed auto insurance reforms by Gov. Kathy Hochul, aimed partly at cracking down on no-fault insurance fraud, have become a major sticking point.

Petrosyants’ lawyer told The New York Times that he has pleaded not guilty and plans to "vigorously" fight the charges.

This isn’t Petrosyants’ first run-in with auto insurance-related crimes. Back in 2014, he and his twin brother, Robert, pleaded guilty to a check-cashing scheme that bypassed anti-money-laundering rules, which also involved no-fault accident claims.

New Charges Unveiled

In an indictment filed yesterday in Manhattan federal court, prosecutors allege that Petrosyants and his co-conspirators submitted insurance claims for services that were never performed, were unnecessary or excessive, and were billed under medical corporations that were not actually owned, operated, or controlled by licensed medical professionals, as state law requires.

Prosecutors say Petrosyants carried out the scheme by recruiting purported physicians, psychologists, and other clinicians, submitting fraudulent no-fault insurance claims under their names. The conspirators reportedly also misused the licenses and signatures of licensed psychologists and medical professionals.

Prosecutors stated that if insurance companies had known the medical corporations were run by non-medical professionals—or that the claims were padded with unnecessary tests or services—they would have denied payment.

According to the indictment, after submitting the claims, Petrosyants allegedly used them to secure a portion of the payouts through financing agreements with funding companies. One such company, tied to an unnamed law firm, provided quick cash advances and "provided a veneer of legitimacy to the scheme," the indictment says.

According to the indictment, Petrosyants received referral fees from the funding company as well as kickbacks from his co-conspirators. Prosecutors also say the company advanced millions on no-fault medical claims to two shell corporations, with the funds eventually funneled into a bank account nominally tied to a jewelry business in Manhattan’s Diamond District.

No-Fault Insurance Rules

In New York State, every registered vehicle must carry no-fault auto insurance, which allows drivers and passengers to receive up to $50,000 per person for injuries from an accident, regardless of who’s at fault. The law ensures prompt payment for medical treatment, eliminating the need for claimants to file personal injury lawsuits to get reimbursed. It also lets patients assign their insurance reimbursement rights to others, including medical clinics that treat their injuries.

“As alleged in the indictment, Zhan Petrosyants orchestrated a complex scheme to cheat insurance providers out of millions of dollars,” said U.S. Attorney Jay Clayton. “No-fault insurance fraud schemes raise costs for everyone and reduce benefits to consumers, an unnecessary burden we all unfortunately share. Today’s arrest demonstrates this Office’s continuing commitment to rooting out this pernicious type of fraud that imposes costs on all New Yorkers.”

The Federal Bureau of Investigation (FBI) teamed up with Clayton’s office to bring the indictment.

Supporters of Hochul’s auto insurance reforms jumped on the news to push their agenda.

“Anyone who says auto insurance fraud isn’t a serious problem is willfully ignoring the facts. This case makes clear that no-fault insurance fraud is not a victimless crime – it is a widespread, organized problem that acts as a hidden tax on New Yorkers and drives up costs for every honest driver,” said James Freedland, a spokesperson for Citizens for Affordable Rates (CAR). “It’s time the legislature takes on auto insurance fraud head-on by passing the Governor’s reforms in the state budget.”

Hochul’s proposals aim to tackle staged accidents by holding criminals—not just drivers—liable for fraud; curb "jackpot" lawsuits by tightening the no-fault definition of serious injury; limit non-economic damages for drivers found mostly at fault under comparative fault rules; require insurers to offer discounts for safe-driving apps and devices; and prevent excessive profits by mandating that insurers return earnings above a set threshold to policyholders.

The New York State Trial Lawyers Association (NYSTLA) stands as the main roadblock in the legislature to Hochul’s auto insurance reforms. NYSTLA argues that the proposed changes would boost insurers’ profits while limiting consumers’ rights to sue and the damages they could receive.

“We’re doubling down on the entrepreneur model to drive our next chapter of growth,” said Ken Walton, president of distribution at Farmers. “This is about thinking big and moving fast. By onboarding 1,700 new agency owners — including an Elite tier of well-capitalized business leaders seeking to build or expand their portfolio — we’ll be injecting fresh energy into our distribution force.”

Farmers says the Elite Program will ‘significantly ramp up agency appointments across the country’ by attracting owners with at least $500,000 in capital. Participants can unlock tiered benefits, including dedicated support lines, priority service, and extra startup and marketing incentives designed to fuel fast growth.

Farmers expects these new agencies to drive policy sales and premium growth faster than any other agent program, setting a new pace for the company’s expansion.

New agent appointments are already up 34% through February compared with last year. Farmers’ bold recruitment push is timed to capitalize on improving market conditions, expand into underrepresented areas, and stay ahead of shifting customer demands.

Farmers will keep growing its network through traditional programs, including Retail and Acquisition tracks—where aspiring agency owners can start fresh or take over an existing agency—alongside specialized paths like the Financial Services Agent (FSA) and Business Insurance Agent (BIA) programs.

Photo: PR NEWSWIRE

For years, the town has pressed the company responsible to clear the massive blades—but their pleas have gone unanswered, leaving the growing eyesore untouched.

"It’s really ugly," says Samantha Morrow, the city attorney. She’s explored the cost of removing the blades, but estimates range from $13 million to a staggering $54 million—far beyond what the city can afford.

Each year, thousands of visitors flock to Sweetwater for its famed Sweetwater Rattlesnake Roundup, while nearby wind energy projects bring a steady stream of additional traffic. But according to Miesha Adames, the towering piles of discarded blades are tarnishing the town’s image—leaving a lasting impression for all the wrong reasons.

Miesha Adames, Sweetwater's executive director of economic development. Photographer: Brenda Bazán/Bloomberg

Texas officials have had enough. Just last month, Attorney General Ken Paxton filed a civil lawsuit against Global Fiberglass Solutions—the company accused of abandoning the massive wind turbine blades in Sweetwater—escalating the fight to clean up the growing mess.

Four individuals have now been indicted on charges of illegal dumping and theft, as prosecutors move to crack down on the growing scandal. The Nolan County District Attorney’s Office is pushing for substantial prison sentences—and warns that even more charges could be on the way.

“They chose Sweetwater, Texas, Nolan County, and just decided, ‘I’m going to take some money and I’m going to leave this here and it’s their problem,” District Attorney Ricky Thompson told reporters at a recent press conference held in front of the blades. “That’s not okay.”

The backlash isn’t limited to Texas. Global Fiberglass Solutions is now under mounting pressure nationwide—facing another lawsuit from the state of Iowa, along with a wave of claims over unpaid wages and outstanding debts to suppliers.

At its core, this is the story of an entrepreneur who believed he could turn discarded wind turbine blades into a multimillion-dollar opportunity—but, by many accounts, got in over his head. What followed is a cautionary tale: frustrated residents, mounting debt, and a growing web of legal troubles closing in.

Don Lilly, chief executive of Global Fiberglass Solutions, insists he hasn’t illegally dumped anything and says he’s still committed to recycling the blades. In an interview late last year, he described being trapped in a vicious cycle—taking in more retired blades while struggling to find buyers for the recycled material—leaving the massive stockpile to keep growing.

In a statement emailed to Bloomberg News in March, Don Lilly said Global Fiberglass Solutions would not comment on the allegations due to ongoing litigation. Meanwhile, the company’s head of business development, Ronald Albrecht, along with his legal representatives, did not respond to repeated requests for comment.

 

The blades have been cut into thirds, leaving openings that locals worry pose a safety risk. Photographer: Brenda Bazán/Bloomberg

While the case itself is unusual, it shines a spotlight on a much bigger problem: what to do with aging wind turbine blades and other complex, plastic-heavy materials once they reach the end of their life. As older turbines are replaced or refurbished, the volume of blade waste is surging—and by 2050, the world could be facing as much as 43 million tons of it, according to one estimate.

Wind turbine blades can be repurposed—shredded for use in cement kilns or transformed into new materials—but these processes are costly and come with environmental trade-offs of their own. Demand for recycled blade material remains limited, leaving few willing buyers. Some companies have found creative uses—turning old blades into bus shelters or even pedestrian bridges—but for now, those innovations remain niche solutions to a rapidly growing problem.

Low-carbon wind power remains a critical tool in the fight to keep global temperatures in check, and the waste it generates represents only a tiny fraction of what ends up in landfills each year. Even so, the local environmental footprint of renewable energy is vastly outweighed by the far more damaging impacts of fossil fuel production—putting the broader picture into sharp perspective.

Back in 2009, Don Lilly and Ken Weyant launched Global Fiberglass Solutions in Bothell after being introduced by a mutual friend. At the time, Lilly was coming from a background in software sales, with no experience in recycling. Weyant—an accountant who later died in 2015—had become fascinated with materials that were notoriously difficult to reuse and was searching for a partner who, as Lilly put it, “thought outside the box.”

The pair spotted an opportunity in the growing wave of waste from composite materials—like those used in boats and airplane wings. A few years later, they expanded their ambitions to include wind turbine blades after Don Lilly came across an article about a turbine manufacturer struggling to dispose of its used blades—an idea that would soon reshape the company’s direction.

The timing couldn’t have been better. In 2015, the U.S. government extended the federal production tax credit for wind energy, triggering a wave of “repowering” across the industry—where operators replaced older turbines, or just their blades, with larger, more efficient models capable of generating more electricity. The result: a looming surge of retired blades, with thousands suddenly destined for landfills nationwide.

Up to 90% of a wind turbine’s mass can be recycled with relative ease—but the blades are a different story. Built from layers of fiberglass or carbon fiber wrapped around cores of balsa wood or plastic foam, they’re fused together with liquid resin that hardens into a single, stubborn structure. Pulling those materials apart is both technically challenging and expensive. Even getting the blades to a recycling site adds another hurdle, often requiring specialized trucks, oversized-load permits, and significant logistical costs.

A roadside sign for Global Fiberglass Solutions along State Highway 70 in Sweetwater tells passing drivers the massive piles of discarded blades are being “prepared for recycling”—a promise that contrasts sharply with the towering stacks still left in place. Photographer: Brenda Bazán/Bloomberg

Global Fiberglass Solutions pitched its vision to turbine makers, including General Electric, promising to cut up retired blades directly at wind farms, haul them away for recycling, and provide official decommissioning certificates. Don Lilly also highlighted a key partnership with Karl Englund, a researcher from Washington State University who later became the company’s chief technology officer. Englund had developed a process to grind old blades into filler materials he said could reinforce products ranging from furniture to concrete—an idea that sounded as promising as it was ambitious.

In 2016, Global Fiberglass Solutions pitched General Electric with a presentation showcasing products it claimed could be made from retired blades—manhole covers, pallets, and industrial panels. The proposal even dangled discounted pricing and the promise of “joint PR activity on recycling efforts,” according to court filings—an offer designed to turn waste into both profit and positive publicity.

The following year, in 2017, Global Fiberglass Solutions set up operations in a former aluminum recycling plant in Sweetwater—marking a major step in its expansion. Not long after, General Electric signed two deals with the company to remove and recycle nearly 5,000 retired blades, paying more than $3,500 per blade—a high-stakes bet on a solution that promised to tackle a growing waste problem.

Global Fiberglass Solutions pitched turbine manufacturers on a sweeping solution: it would cut up retired blades right at wind farms, haul them away for recycling, and provide official decommissioning certificates—an all-in-one promise designed to make a complex problem disappear. Photographer: Brenda Bazán/Bloomberg

According to Karl Englund, the problem was simple: filler products just didn’t excite potential customers. “People want sexy. They want their recycling operation to have some whiz-bang,” he said in an interview. Even worse, producing filler—even if demand had existed—would have consumed only a small fraction of the material coming from the blades, leaving the bulk of the waste problem unresolved.

Karl Englund had also developed a method to turn more of the blades into usable panels—but scaling it up came at a steep cost. The specialized equipment was expensive, and the grinding process itself put intense strain on machinery, causing significant wear and tear that made the operation even harder to sustain.

Even so, a press release from Global Fiberglass Solutions in early 2019 painted a far more optimistic picture—claiming that “commercial production” was already underway in Sweetwater, despite signs the operation was still struggling to scale.

Tatiana Golik said she was pressured by executives to portray Global Fiberglass Solutions as “fully operational” during a 2019 presentation to a turbine manufacturer. She also said she was instructed to draft a client newsletter declaring that “manufacturing is on.” The newsletter, reviewed by Bloomberg, claimed the company was producing between 300 and 500 pounds of pellets each day—an assertion that painted a far more active operation than some insiders say actually existed.

“That was a complete lie,” Golik said in an interview. “We weren’t producing anything daily.”

In an email to Bloomberg, Don Lilly pushed back on the claims, saying statements from former employees are “disputed.” He added that the plant’s status evolved over time and, during that period, it “had not yet received all permits required to conduct full manufacturing operations”—offering a more nuanced picture of a facility still in transition.

After its 2018 visit to Sweetwater, General Electric chose not to sign any additional contracts with Global Fiberglass Solutions. By then, however, the damage was done: GE had already handed over roughly 5,000 blades for recycling—many of which ended up stockpiled across Iowa and Texas. And GE, it turned out, wasn’t the company’s only client.

In 2022, the Texas Commission on Environmental Quality issued an enforcement order requiring Global Fiberglass Solutions to secure permits for the blades already on site—and to stop accepting new material until it did. Regulators say the company failed to comply, prompting the case to be referred to Ken Paxton. Since then, according to Paxton’s office, Global Fiberglass has continued taking in multiple deliveries of turbine parts at its main Sweetwater facility, further escalating the standoff.

Some of the blades were hauled in by Dent Trucking, a local firm that began working with Global Fiberglass Solutions in 2017. Its owner, Cliff Dent, said he invested heavily—buying seven extra-long trailers at $35,000 each specifically to transport the massive blades. But the payments eventually stopped. Dent says he’s now owed $590,000 and has been forced to dip into his retirement savings just to keep his business afloat.

Global Fiberglass Solutions also stockpiled hundreds of blades from General Electric across three sites in Iowa. The company told GE it planned to expand into a facility in Newton—even touting it in a press release as a “major development.” But when later interviewed, Don Lilly said those plans unraveled after asbestos was discovered inside the building, preventing his team from ever gaining access to the site.

In 2022, the Iowa Attorney General’s Office warned General Electric it would pursue a civil environmental enforcement action over the growing blade waste—targeting both GE and Global Fiberglass Solutions. Facing mounting pressure, GE moved quickly to defuse the situation, ultimately paying $5.5 million to have the blades removed.

Cliff Dent says he invested in specialized extra-long trailers to haul massive wind turbine blades—only to be left unpaid, with Global Fiberglass Solutions now owing him hundreds of thousands of dollars. Photographer: Brenda Bazán/Bloomberg

In September 2023, General Electric sued Global Fiberglass Solutions, accusing it of “fraud and deception” and running a “bait-and-switch scheme.” In response, Global Fiberglass pushed back, arguing in court filings that its agreements with GE did not require it to actually recycle the blades—only to ensure they didn’t end up in landfills—setting the stage for a high-stakes legal battle over what was promised versus what was delivered.

In 2024, a judge sided with General Electric—which had by then split into three entities, with its wind business spun off into GE Vernova Inc.—and ordered Global Fiberglass Solutions to pay roughly $15.5 million, plus interest and legal fees, delivering a costly blow in the escalating dispute.

“We are pleased that the court ruled in our favor,” a GE Vernova spokesperson said in a statement to Bloomberg. “We will continue to work with other reputable suppliers and support industry partnerships designed to address the industry-wide issue of wind-turbine-blade recycling.” GE Vernova didn’t address specific questions about its dealings with Global Fiberglass.

From there, the legal pressure on Global Fiberglass Solutions only intensified. In September 2024, the Iowa Attorney General’s Office filed suit against the company, along with Don Lilly and Ronald Albrecht, alleging they illegally disposed of solid waste by stockpiling blades while making “no effort to recycle” them. Lilly and Albrecht moved to dismiss the claims, arguing Iowa courts lacked jurisdiction and that they shouldn’t be held personally liable—but a district court judge rejected that request. The two have since taken their fight to the Iowa Supreme Court, where the appeal remains pending.

Tatiana Golik, Heath Ince, and Karl Englund say they believe Don Lilly set out with the genuine goal of recycling the blades—but ultimately mismanaged the business, turning ambition into a costly unraveling.

Tatiana Golik said she left Global Fiberglass Solutions in 2022 after months without pay—and is still owed $86,000. Heath Ince says he’s owed more than $14,000 himself. He also recalled urging Don Lilly to fence off the towering blade piles to keep children from climbing on them—but said his warnings were ignored.

“Towards the end, he was desperate for money and started trying to save himself, regardless of who else got hurt,” said Ince.

Don Lilly declined to comment on the specific allegations from Heath Ince and Tatiana Golik. In late 2025, he said he remained active in blade recycling through a new company he had launched, which had recently signed contracts—though he refused to disclose the identities of his clients.

“This is not Global Fiberglass. It has nothing to do with Global Fiberglass,” he said.

The fate of the towering blade piles in Sweetwater remains uncertain, leaving residents and industry watchers alike wondering what will happen next.

Most retired wind-turbine blades end up in landfills. In the U.S., the main alternative is to shred them and feed them into cement kilns—but many experts see this as little more than a temporary fix. Cement kilns are major sources of hazardous air pollutants and carbon emissions, and the irregular arrival of blades clashes with the kilns’ need for a steady mineral mix. The process is also far more expensive than simply landfilling. Only a handful of U.S. kilns accept blades, and the intense grinding quickly wears out the specialized equipment.

"Silica will grind down every component you use," said Bob Cappadona, president and CEO for hazardous waste at Veolia North America. After General Electric moved away from Global Fiberglass Solutions, Veolia began shredding GE’s blades for cement kilns. “The grinder we were using was nearly half a million dollars and we were going through them like candy,” Cappadona recalled.

Disused blades in a field off State Highway 70. Photographer: Brenda Bazán/Bloomberg

Other companies are exploring alternative approaches. Some are designing blades with materials that can be more easily separated for recycling. Others, like Vestas Wind Systems AS and Gjenkraft, are experimenting with heat or chemical treatments to break down blades—though these methods can be energy-intensive and costly. In Iowa, a company called Renewablade is incorporating blades into non-structural concrete, but its process is limited to local production.

Some older turbines and their components are refurbished and sold secondhand in countries such as Italy and Poland, where strict height restrictions can make it difficult to install the newer, larger models.

To encourage innovation, members of WindEurope agreed to a voluntary ban on landfilling turbine blades, which went into effect in January. Meanwhile, in Texas, a new law requires that the costs of disposing and recycling wind components be factored into the financial assurances mandated under wind-power facility agreements.

Meanwhile, in Sweetwater, the towering piles of discarded blades remain a daily eyesore, with no clear timeline for when—or if—they will ever be removed.

Cliff Dent, who last transported blades for Global Fiberglass Solutions in 2023, says he still worries about children from the nearby housing complex getting injured by the towering piles.

“They’re like handmade forts to go play in. They’re stacked and they’re dangerous,” he said. “For us, this started out as a blessing but it’s turned into a nightmare.”

Photo: Brenda Bazán

According to court documents, between March 2023 and March 2024, the Lawlers collected insurance payments from BL Insurance clients—money that was supposed to go straight to insurers. Instead, prosecutors say, they diverted those funds for themselves, quietly pocketing client payments and using the cash for personal expenses.

Federal prosecutors say the scheme was far-reaching, with the Lawlers defrauding at least 50 victims, including individuals and insurance providers. Court filings allege they siphoned off no less than $462,247.89 from insurers and premium finance companies, along with another $307,486.33 from lenders—adding up to a staggering financial hit.

Prosecutors say the Lawlers went to great lengths to cover their tracks—and keep BL Insurance from collapsing. They allegedly used new client payments to plug unpaid premiums owed for other customers, effectively shuffling money to stay afloat. At the same time, they issued fake certificates of insurance, giving clients the false impression they were fully covered when, in reality, they were not.

Prosecutors say that when clients began to realize they weren’t actually insured, the Lawlers scrambled to keep the scheme alive—offering excuses and doubling down on deception. Beyond issuing fake insurance certificates, they allegedly sent clients images of tracking numbers, receipts, and even checks, falsely claiming these were proof that payments had been sent or processed.

Prosecutors say that, at times, the Lawlers tried to quiet complaints by issuing refunds or belatedly securing coverage—but often by dipping into payments from other clients, shifting funds around to keep the scheme from unraveling.

According to an affidavit, the fallout stretched far beyond a single community. Victims included an insurance brokerage in Daytona Beach, Florida, which had arranged coverage for its own clients, as well as insurance customers operating law offices in New Bedford and East Boston—underscoring just how wide the scheme’s reach had become.

On its website, BL Insurance portrayed itself as a full-service brokerage based in Fairhaven, touting licenses across multiple states—including Massachusetts, Rhode Island, New Hampshire, Maine, New Jersey, and Connecticut. It claimed to offer a wide range of coverage, from professional and general liability to commercial property, financial products, and personal insurance—presenting an image of credibility that prosecutors say masked a far different reality.

The policyholder—a Florida-based investment firm with property in Kentucky—had also secured additional coverage that could have reimbursed the $45,000 depreciation deduction. But there was a catch: the firm missed its chance by failing to complete repairs within the two-year window required by the policy. In its March 25 opinion in Schoening Properties v. Cincinnati Casualty, the U.S. 6th Circuit Court of Appeals made it clear—timing matters, and overlooking key policy deadlines can come at a steep cost.

Schoening’s argument in the appeal “ignores the basic principle that ‘insurance which covers the full cost of repair without deduction for assured depreciation’ demands a higher premium, as it “force[s] [the insurer] to pay for erecting what is in effect a new building,'” the court wrote, quoting from previous federal court decisions and a treatise on the issue.

Insurers often stumble on appeal when policy language is vague or open to interpretation—but not this time. Here, the court found the wording in Schoening’s commercial policies to be clear and unambiguous: the policyholder simply could not recover payment without accounting for depreciation. In other words, the fine print held firm—and it made all the difference.

“It may claim only a payment for actual cash value, less a ‘deduction that reflects depreciation.'”

The ruling affirmed a lower court decision from the Southern District of Ohio, bringing the case to a firm close. Yet, despite the outcome, key details remain surprisingly unclear—the final opinion and Schoening’s complaint offer no specifics on where the property is located or what actually caused the loss, leaving a notable gap in the story.

“The seminal legal dispute before the Court is whether Defendant’s standard form policy language allows for depreciation on partial losses in which Defendant’s estimate and claim payment were based on proposed repairs to damaged insured structures,” reads Schoening’s complaint in the 2024 lawsuit.

Both the trial court and the appellate panel found the investment firm’s arguments unconvincing across the board. The court didn’t hold back, noting that Schoening’s reading of the insurance contract simply doesn’t hold up when viewed in the context of the policy as a whole—underscoring just how far off the mark the claim really was.

The push to turn the case into a class action also fell apart. As Cincinnati’s legal team pointed out, the proposed group of plaintiffs spanned multiple states—each with its own rules on how contract ambiguity is interpreted—making a unified claim difficult to sustain and ultimately undermining the effort from the start.

Want to dive deeper? You can read the court’s full opinion here—and explore Schoening’s original complaint here to see how the case unfolded from the very beginning.

Photo: Dizain - stock.adobe.com

The discovery marks the second time this month that researchers have uncovered spyware aimed at iPhones and other Apple devices. Taken together, these two hacking tools paint a troubling picture: a booming underground market for highly sophisticated malware designed to siphon off personal data—and even drain cryptocurrency wallets—right under users’ noses, researchers warn.

Cybersecurity researchers from Lookout, mobile security firm iVerify, and Google—part of Alphabet—have released coordinated analyses of a newly identified malware strain they’ve dubbed “Darksword.” Earlier this month, on March 3, Google and iVerify also disclosed another powerful iPhone spyware known as “Coruna.” What’s especially alarming: investigators discovered that Darksword was hosted on the very same servers, hinting at a deeper, possibly connected operation behind both threats.

"There’s now a verified pipeline of recent exploits … that have ended up in the hands of potentially criminal entities with a financial focus," said Justin Albrecht, a principal researcher at Lookout, underscoring the growing risk behind these increasingly accessible hacking tools.

Google Sounds the Alarm on Expansive, Far-Reaching Hacking Campaigns

Google says its researchers have uncovered multiple, separate campaigns using Darksword—carried out by commercial surveillance vendors and suspected state-linked hackers—targeting victims in Saudi Arabia, Turkey, Malaysia, and Ukraine, signaling a far broader and more coordinated threat than previously known.

Google linked the campaigns in Malaysia and Turkey to PARS Defense, a Turkish commercial surveillance vendor. The company did not respond to requests for comment—adding another layer of uncertainty around its alleged role in these operations.

According to iVerify and Lookout, the malware was quietly delivered to iPhone users running iOS versions 18.4 through 18.6.2—triggered simply by visiting one of dozens of compromised Ukrainian websites. Those versions, released by Apple between March and August 2025, may have left a significant window of opportunity for the attack to unfold undetected.

Researchers say it’s still unclear exactly how many iPhones remain vulnerable to Darksword attacks. Apple has already rolled out several patches to fix the underlying flaws, but that doesn’t mean users are in the clear. Many people delay or skip updates altogether—leaving an estimated 220 million to 270 million iPhones still running exposed iOS versions, according to iVerify and Lookout, based on public data. Adding to the concern, Google did not disclose its findings ahead of Wednesday’s report, raising questions about how long the threat may have gone unnoticed.

An Apple spokesperson said the attacks specifically targeted “out of date software,” emphasizing that the underlying vulnerabilities have already been fixed through multiple updates rolled out over the past several years—meaning users on the latest operating system versions are no longer exposed.

“Keeping software up to date remains the single most important thing users can do to maintain the high security of their Apple devices,” the spokesperson said.

The spokesperson added that all malicious domains identified by Google have now been blocked through Apple Safe Browsing in Safari—an extra safeguard designed to stop the attacks from spreading any further.

The emergence of two separate, high-powered iOS exploits in just one month points to a thriving and rapidly evolving ecosystem—one where tools once reserved for state-level intelligence agencies are now spreading more widely, said Rocky Cole, co-founder and COO of iVerify.

Researchers say the vulnerabilities were uncovered thanks to careless security missteps—mistakes that are rarely seen in the typically precise, highly disciplined world of state-backed iPhone hacking—making the discovery all the more surprising.

In findings and interviews ahead of Wednesday’s release, researchers at iVerify and Lookout revealed that Darksword was hosted on the same internet servers used by the suspected Russian operators behind Coruna—an overlap that hints at a potentially deeper connection between the two operations.

According to Farmers, just before cutting ties in 2025, McKinney allegedly downloaded his entire book of business and passed that confidential data to producers at a rival agency.

The lawsuit was officially filed on March 11 in federal court in northern Oklahoma, marking a significant escalation in the dispute.

From 2010 to 2025, McKinney ran a Farmers agency in Tulsa under the name McKinney Insurance & Financial Services. According to the lawsuit, his wife, Tory McKinney, and producer Christopher Spicer remained part of the operation until 2023—when they left to join Hometown Insurance Agency in Tulsa, a move that now sits at the center of the dispute.

According to the lawsuit, Bradley McKinney began steering Farmers policyholders to Tory McKinney and Christopher Spicer at Hometown in late 2023. The impact was swift: active policies at his Farmers agency started slipping that same year, declined further in 2024, and then dropped even more sharply in the first four and a half months of 2025, Farmers claims.

The lawsuit claims that on February 18, 2025, Bradley McKinney downloaded his agency’s entire book of business into an Excel file—then, just two days later, submitted a letter to Farmers terminating his agent agreement.

Farmers says its proprietary customer data is tightly safeguarded behind secure login systems that require multi-factor authentication. In the lawsuit, the company emphasizes that the information housed within these platforms is not just sensitive—it’s classified as trade secrets.

Farmers cut ties with Bradley McKinney on May 15, 2025—two weeks ahead of his planned departure. According to the lawsuit, he later resurfaced at Hometown, deepening the dispute.

Farmers is pushing for both compensatory and punitive damages—and is taking the fight to a jury trial.

“Limiting consumers to only the most expensive coverage just made buying a home that much more difficult, and created real harm for the homeowners market,” said Neil Alldredge, president and CEO of the National Association of Mutual Insurance Companies. “The vast majority of mortgages are backed by the (government-sponsored enterprises), and so keeping costs needlessly high probably prevented some consumers from becoming homebuyers.”

Full replacement-cost coverage often comes with a higher price tag—something National Association of Mutual Insurance Companies says effectively acted as a “backdoor mandate,” limiting access to more affordable policies that factor in depreciation.

“Giving consumers more options to fit their needs and budgets will bring with it greater competition in the marketplace and help bring costs down,” Alldredge said.

National Association of Mutual Insurance Companies said it pushed back against the rule early on and helped secure a pause in May 2024. Still, the group noted that many mortgage lenders continued citing the policy to deny consumers and prospective homebuyers access to more affordable alternatives.

Meanwhile, pressure mounted on Capitol Hill. Lawmakers—including Reps. Mike Flood and Addison McDowell, along with Sen. Eric Schmitt—raised concerns throughout the debate, warning that the rule restricted consumer choice and drove up costs. McDowell pointed to a letter signed by 45 House Republicans urging the Federal Housing Finance Agency to restore the option for actual cash value insurance on mortgages backed by Fannie Mae and Freddie Mac.

“We should be doing everything in our power to make homeownership attainable – especially in rural towns,” McDowell said. “I commend [FHFA Director William J. Pulte] and the Trump Administration’s action in restoring common-sense consumer choice to the housing market.”

“We appreciate FHFA’s willingness – along with Fannie Mae and Freddie Mac – to engage directly with insurers and other stakeholders to better understand the real-world impacts of the February 2024 guidance,” said Karen Collins, vice president of property and environmental for the American Property Casualty Insurance Association. “That engagement was critical in recognizing how certain requirements were contributing to higher costs, reduced coverage availability, and unintended challenges for condominiums and other properties.

“At a time when families are struggling with rising living costs and housing affordability challenges, policies grounded in real-world market conditions can make a meaningful difference.”

Photo: Tada Images - stock.adobe.com

“Flood insurance should be easy to understand and easy to buy,” said Trevor Burgess, chairman and CEO of Neptune Flood. “Our app in ChatGPT allows us to meet customers where they are and make protection more accessible for families and businesses nationwide. Neptune is an AI-native company, and we are excited to be pioneering technological advancements for the benefit of consumers.”

Property owners can simply ask questions about coverage and receive an instant preliminary quote through a seamless conversational AI experience. Available in all 50 states and Washington, D.C., Neptune says the new capability expands on its existing direct-to-consumer, real-time quoting technology—already offered on its website and through agency partners’ sites—now delivered as an embedded AI quoting assistant designed to make flood insurance faster and easier to access.

In a recent interview with Insurance Journal, Burgess said the private flood insurance market is evolving at remarkable speed. He noted that the company operates without human underwriters, processes roughly 20,000 quotes every day, and is able to deliver a price to about 95% of applicants—highlighting the power of its fully automated underwriting model.

With the Neptune Flood app now available in ChatGPT, consumers can quickly and easily:

• Get clear, instant answers to their questions about flood risk.
• Receive an instant, real-time preliminary quote in just seconds.
• Explore flood insurance options explained in clear, everyday language.
• Seamlessly move to neptuneflood.com to quickly complete their purchase and secure coverage.

Tom Wexler, Neptune’s chief engineer, explained, “We architected our proprietary underwriting system, Triton, as a modular, API-first underwriting system specifically so it could integrate into new digital environments like ChatGPT. Using the Model Context Protocol (MCP), a lightweight API layer securely orchestrates data retrieval, risk modeling, and rating in real time on top of our existing underwriting infrastructure. Because our underwriting stack is fully automated and cloud-native, we can extend instant quoting into conversational AI without changing our core workflow.”

The Neptune Flood app on ChatGPT is now live—ready for users to explore here.

The growing influence of AI in claims handling takes center stage in one of the report’s key predictions—signaling a shift that could fundamentally change how insurers assess, process, and resolve claims in the months ahead.

“As AI drives more claims automation, we will see more straight-through processing of low complexity claims in 2026,” said report co-author Joel Raedeke, senior vice president, U.S. technology for Crawford.

Crawford & Company predicts that insurers, regulators, and policyholders will take a far more proactive stance as natural disasters grow larger and more destructive. Events like the Los Angeles wildfires of January 2025 have already triggered sweeping changes—prompting insurers to push for higher rates or pull back from writing new policies in California, while regulators scramble to rethink the rules that govern the market.

The report’s authors expect to see broader industry support for resilience, along with stronger efforts to educate homeowners and contractors about how to better prepare for disasters. They also anticipate new funding streams and creative financing options designed to strengthen homes before the next catastrophe strikes. That could include insurance endorsements that cover part of the cost of installing more resilient roofing materials, loans or grants to help homeowners pay for upgrades, and expanded access to private financing to make those improvements more attainable.

The report also points to the rise of new approaches to insurance coverage. As AI becomes more powerful, it is expected to reshape both policy pricing and claims processing. With the ability to store, compile, and analyze vast amounts of data, insurers will be able to deliver far greater customization across the entire policy lifecycle—tailoring coverage, pricing, and service in ways that were nearly impossible just a few years ago.

Innovation and rapid change run through several of the report’s key predictions. In 2026, the industry is expected to face a familiar but intensifying challenge: the cost of medical care and indemnity claims will keep climbing—even as the overall number of claims continues to decline.

“Expect to see a healthy mix of captives and traditional insurance products bubble to the surface to address the resulting medical and indemnity market needs,” the report added.

Here are several other key predictions from Crawford & Company that could shape how the claims industry evolves in the months ahead:

• “New regulation will drive the claims industry to re-examine how speed and accuracy are balanced in post-disaster recovery.”
• “Data-driven transparency into adjuster performance will become table stakes for TPAs.”
• “An uptick in cyber regulation will drive more activity and associated expenses from panel providers.”
• “A shift in the market cycle will put pressure on captives in 2026, possibly bringing organizations back to the traditional market.”
• “2026 will test the industry’s agility in preparing for what can’t yet be predicted.”

Photo: Generated by AI

Hours later, Benjamin Netanyahu stepped before cameras for his first press conference since the war began, delivering a stark and unmistakable message. The Israeli leader issued a thinly veiled threat against Mojtaba Khamenei while forcefully defending Israel’s sweeping military assault on Iran—an offensive that has already claimed thousands of lives and sent shockwaves through global energy markets and stock exchanges.

“I wouldn’t issue life insurance policies on any of the leaders of the terrorist organization,” Benjamin Netanyahu said, delivering the line with a pointed warning. “I don’t intend to give an exact message here about what we are planning or what we are going to do.”

Standing between two Israeli flags and answering questions through a video link, the Israeli prime minister left the message hanging in the air—hinting at possible moves ahead while keeping the details deliberately under wraps.

In Iran, Mojtaba Khamenei did not appear publicly. Instead, his remarks were read aloud by a presenter on state television. No images of the new supreme leader have surfaced since the Israeli strike that ignited the war—an attack that wiped out much of his family, including his father, Ali Khamenei, and his wife—adding a layer of mystery and tension to his sudden rise to power.

In the statement, Mojtaba Khamenei urged neighboring countries to shut down U.S. military bases operating on their soil, warning that any facilities still being used against Iran would remain in Tehran’s crosshairs. The message carried a stark warning: if those bases stay open, Iran will continue to strike them.

"I assure everyone that we will not neglect avenging the blood of your martyrs," the hardline cleric declared, vowing that Iran would relentlessly pursue revenge for those killed in the conflict. The warning from Mojtaba Khamenei underscored the uncompromising tone of his first message since taking power, signaling that retaliation remains at the heart of Tehran’s strategy as tensions continue to escalate.

"The popular demand is to continue our effective defense and make the enemy regret it," Mojtaba Khamenei said, adding that Iran must keep using one of its most powerful pressure points: blocking the Strait of Hormuz.

The narrow waterway—through which roughly one-fifth of the world’s oil supply normally flows along Iran’s coast—has become a critical lever in Tehran’s escalating standoff with the West.

Iranian state television gave no explanation for why the message was read by a presenter instead of being delivered in person by Mojtaba Khamenei. Iranian officials have said he was only lightly wounded during the initial February 28 airstrikes that ignited the conflict, but the true extent of his injuries remains unclear—fueling speculation about his condition and why he has yet to appear in public.

The growing risk of one of the most severe disruptions to global energy supplies in decades sent oil prices surging about 9%, pushing crude back to around $100 a barrel after earlier sliding in the week on hopes the conflict might end quickly. The sharp rebound underscored how fragile the market remains, as traders brace for the possibility that the crisis could choke off vital energy flows and ripple across the global economy.

U.S. stocks slid on Thursday, with the S&P 500 posting its steepest three-day percentage drop in a month as investors grew increasingly uneasy about the escalating conflict and its potential shockwaves across the global economy. The selloff signaled a sudden shift in market mood, as optimism earlier in the week quickly gave way to rising fear and uncertainty on Wall Street.

Flames Erupt as Oil Tankers Burn at Iraqi Port

Two oil tankers erupted in flames at an Iraqi port after being struck by suspected Iranian boats packed with explosives—an attack widely seen as a bold show of defiance against Donald Trump, who declared just a day earlier that the United States had already won the war. The fiery strike sent a stark message that the conflict may be far from over.

Images verified by Reuters and filmed at the port of Basra captured a dramatic scene: ships swallowed by towering orange fireballs that lit up the night sky. The devastating blast left at least one crew member dead, underscoring the deadly stakes as the conflict spills into vital energy hubs.

Just hours earlier, three other vessels were hit across the Gulf, signaling a widening threat to shipping in one of the world’s most critical trade corridors. Iran’s powerful Islamic Revolutionary Guard Corps claimed responsibility for at least one of the strikes—an attack that left a Thai bulk carrier engulfed in flames. Meanwhile, a separate container ship reported being struck by an unidentified projectile near the United Arab Emirates, raising fresh fears that the conflict is rapidly spreading across key maritime routes.

On another front in the increasingly unpredictable war, Israeli airstrikes slammed into a building in central Beirut on Thursday, sending thick plumes of smoke billowing over the Lebanese capital and rattling a city already on edge as the conflict spreads beyond its original battle lines.

Israel also ordered residents to evacuate another wide stretch of southern Lebanon, escalating its campaign against the Iran-backed militant group Hezbollah. The move came after the group unleashed its largest barrage of rockets into Israel since the war began, raising fears that the conflict is rapidly widening across the region. 

So far, the war has claimed more than 2,000 lives, with nearly 700 of those deaths reported in Lebanon alone—a grim toll that highlights how quickly the violence is spreading and how devastating the human cost has already become.

As Drones Fill the Skies, Donald Trump Says the U.S. Stands to Gain

Casting doubt on U.S. and Israeli claims that much of Iran’s long-range arsenal had been destroyed, fresh waves of drones were reported flying across the region—entering the airspace of Kuwait, Iraq, United Arab Emirates, Bahrain, and Oman—a sign that Tehran may still have significant strike capability despite the ongoing bombardment.

In another troubling development, a U.S. military refueling aircraft crashed in western Iraq on Thursday. U.S. officials said the incident involved another aircraft but was not caused by hostile or friendly fire, leaving key questions about what exactly happened in the skies over the war zone.

Since the United States and Israel launched their strikes against Iran on February 28, seven U.S. service members have been killed—an early toll that highlights the growing risks as the conflict deepens.

Iran has warned it will not allow oil shipments to pass through the Strait of Hormuz until attacks by the United States and Israel come to an end. But Donald Trump brushed aside the surge in oil prices, signaling confidence that the situation will not derail the broader economic outlook despite mounting tensions in one of the world’s most critical energy corridors.

“The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money,” Trump wrote on social media.

Scott Bessent told Sky News in an interview that the United States Navy could begin escorting ships through the Strait of Hormuz once military conditions allow—possibly alongside an international coalition—signaling a potential effort to reopen one of the world’s most vital energy corridors despite the escalating conflict.

The United States is both a net exporter of oil and the world’s largest consumer of it—a balance that leaves the economy highly sensitive to global price swings. Economists warn that if oil prices stay elevated for long, the ripple effects could spread quickly, fueling broader inflation and driving up costs across everything from transportation to everyday goods. 

In a separate remark, Donald Trump said the Iran national football team would still be welcome to compete in the 2026 FIFA World Cup, which the United States is set to co-host. But he added a striking caveat, suggesting it might not be appropriate for the team to attend “for their own life and safety,” a comment that underscored how deeply the escalating conflict is beginning to ripple beyond the battlefield and into the world of global sport.

‘Security Forces Are Everywhere’

Inside Iran, residents say security forces have stepped up their presence across cities and key public areas, a visible show of strength meant to signal that the government still firmly holds the reins. The expanded patrols and checkpoints appear designed not only to deter unrest but also to project an image of control at a moment when tensions inside the country are running high.

“Security forces are everywhere, more than before. People are afraid to come out, but supermarkets are open,” teacher Majan, 35, said by phone from Tehran.

Israel said it had targeted checkpoints in Tehran run by the Basij, a volunteer militia tied to the powerful Islamic Revolutionary Guard Corps, striking positions the group uses to enforce security across the capital. The attacks highlight Israel’s expanding effort to weaken Iran’s internal security apparatus as the conflict pushes deeper inside the country.

Israel and the United States have urged Iranians to rise up and overthrow the country’s clerical leadership. Many people inside Iran have long called for change, and some even openly celebrated the death of the elder supreme leader, Ali Khamenei, on February 28—the first day of the war—after security forces under his rule had killed thousands of anti-government protesters in January.

Yet despite the anger and frustration simmering beneath the surface, there has been no clear sign of organized dissent as the country faces mounting attacks from abroad.

Tehran Aims to Trigger a Prolonged Global Economic Shock

Iran is signaling that its new strategy is to unleash a prolonged economic shock—one aimed at forcing Donald Trump to back down. A spokesperson for Iran’s military command warned on Wednesday that the world should brace for oil prices to soar as high as $200 a barrel, a stark reminder of how quickly the conflict could shake the global economy.

Chris Wright said Thursday that he does not expect oil prices to surge to that level, though he stopped short of ruling it out entirely. “I would say unlikely, but we are focused on the military operation and solving a problem,” Wright told CNN, signaling that Washington remains more concerned with the unfolding conflict than with short-term market volatility.

Oil prices continued to climb even after developed nations announced Wednesday that they would release 400 million barrels from their strategic reserves—nearly half of it coming from the United States. The move was meant to calm jittery markets, but the surge in prices showed that fears of deeper disruptions to global energy supplies are still gripping traders.

Unsurprisingly, the strongest results emerged in commercial liability lines, where insurers posted some of the highest loss ratios on record. At the other end of the spectrum were personal lines—particularly homeowners insurance, which is often vulnerable to wildfire risk. That segment saw notably lower loss ratios, helped in part by a rare bit of luck: the United States avoided any landfalling hurricanes last year, giving insurers a much-needed break from major catastrophe losses.

Ultimately, the lows outweighed the highs, according to a report on property/casualty insurers’ statutory financial results from S&P Global Market Intelligence titled “Spectacular P&C Statutory Profitability May Prove Fleeting.” Yet the most important takeaway from last year’s record-setting performance wasn’t simply the divide between personal and commercial lines. Instead, researchers say the real story was the widening gap between property and casualty—two sides of the industry that moved in sharply different directions as 2025 unfolded.

"We can say with conviction that the industry will not replicate these results in 2026, or, quite possibly, at any point in the foreseeable future," wrote analysts Jason Woleben, Tim Zawacki, and Husain Rupawala of S&P Global Market Intelligence in a report released Monday. They noted that 2025 delivered the strongest underwriting performance in 19 years, fueled by a rare alignment of favorable market cycles, lighter catastrophe losses, and aggressive profitability initiatives across the industry. But the momentum may be short-lived. Slowing premium growth and intensifying competition are already casting doubt on whether insurers can come close to repeating such standout results anytime soon.

In dollar terms, the property/casualty industry posted a staggering $67.9 billion in net underwriting gains in 2025—easily eclipsing the inflation-adjusted record of $54.2 billion set in 2006. The milestone highlights just how extraordinary the year was for insurers, marking one of the most profitable underwriting performances the industry has ever seen.

The industry’s combined ratio came in just under 93.0—an exceptionally strong result that has been topped only once in the past two decades. The only better performance was a 92.4 combined ratio recorded back in 2006, underscoring just how rare and remarkable the industry’s underwriting strength was in 2025.

When it comes to the biggest winners and losers by line of business, S&P Global Market Intelligence highlighted several striking extremes. The firm’s research on 2025 net loss ratios reveals just how dramatically performance varied across the property/casualty landscape—setting the stage for some eye-opening highs and lows across the industry.

• The homeowners line posted a net loss ratio of 53.7 in 2025—an impressive 11.1-point improvement from 2024 and its strongest performance in a decade. It marked the lowest level since 2015, highlighting just how dramatically conditions improved for insurers in this catastrophe-sensitive segment.
• The private passenger auto segment also delivered a notable turnaround. Its net loss ratio fell to 61.1 in 2025—an improvement of 4.7 points from 2024 and the line’s best result since 2020. Even more striking, the personal auto physical damage segment recorded a net loss ratio of just 52.2, the lowest level seen in at least three decades, underscoring a dramatic rebound in profitability for auto insurers.
• Meanwhile, casualty lines moved in the opposite direction. According to an aggregate analysis by S&P Global Market Intelligence, the net loss ratio for casualty business climbed to 66.7 in 2025. Within that group, pressure was especially evident in several key segments: the loss ratio for other liability coverage surged to a 21-year high of 68.0, while medical professional liability also reached its highest level in more than two decades at 57.9—signaling mounting claims costs across parts of the casualty market.

Notably, private passenger auto liability told a more nuanced story. The subline posted a net loss ratio of 67.9 in 2025—down 2.1 points from 2024 but far from a record. In fact, according to S&P Global Market Intelligence, the personal auto liability loss ratio has been lower than 67.9 in 20 of the past 30 years. The figure reinforces analysts’ broader takeaway: the real dividing line in 2025 wasn’t personal versus commercial business, but property versus liability—an imbalance that ultimately shaped the year’s overall property/casualty underwriting results.

“[E]ven as underwriting results on a total-filed basis improved to levels we may only see once or twice in our lifetimes, several commercial casualty lines showed noteworthy deterioration,” the S&P GMI analysts wrote.

“In addition to the unique confluence of circumstances that led to 2025’s outsized profitability, written premium growth is significantly lagging earned premium growth at respective rates of 4.9% and 6.3% as heightened competition returns to the private auto market and the scourge of social inflation is not going away,” they wrote, further explaining why the industry’s success in 2025 is unlikely to be replicated in 2026.

But a review of industry sales data by Reuters points to a more market-driven explanation: Automakers are offering far fewer budget models while packing showrooms with larger, more upscale vehicles—pushing the average price of a new U.S. car to roughly $47,000. The shift toward pricier models highlights a striking feature of today’s so-called K-shaped U.S. economy: Wealthier buyers are fueling a growing share of spending, while many middle- and lower-income Americans are increasingly priced out.

The result: America’s new-car buyers are increasingly more affluent, while a large share of middle- and lower-income consumers are being pushed out of the showroom and toward the used-car lot.

The limited number of reasonably priced options has been a growing frustration for Delaware resident Sarah Merriman. As the lease on her Ford Mustang Mach‑E electric SUV approaches its end, she’s finding it surprisingly difficult to track down an affordable replacement.

“I’m stressing out, because I’m already in a $700 car payment right now,” Merriman said.

The affordability crunch could become a “tremendous vulnerability” for traditional automakers if Chinese brands eventually break into the U.S. market, said John Casesa, senior managing director at Guggenheim Partners and a former executive at Ford Motor Company.

“It’s a risk that they underserve less affluent consumers, and new entrants come in and steal that business,” he said.

‘We’re Buying More Loaded Vehicles’

Vehicle affordability has become a major talking point for Donald Trump and several lawmakers as the U.S. heads toward the midterm congressional elections. In December, officials from the Trump administration pointed to the need to bring down car prices as a key reason for easing fuel-economy standards.

Within the auto industry, the affordability debate often centers on the average transaction price—the typical amount buyers pay across all new vehicle models. According to research from J.D. Power, that figure has surged about 40% from December 2018 to December of last year, climbing to roughly $47,000—an increase that underscores just how quickly new cars are slipping out of reach for many Americans.

“We’re buying more expensive vehicles. We’re buying more trucks and SUVs. We’re buying more loaded vehicles,” said Tyson Jominy, a senior vice president at J.D. Power.

Back in 2010, just 96 vehicle models carried sticker prices at or above the once-lofty $40,000 mark, according to data from car-shopping site Edmunds. Since then, options at that price level— even after adjusting for inflation—have exploded. By last year, shoppers were staring at 156 models in that bracket, with many now pushing closer to $60,000, highlighting how dramatically the new-car market has shifted upmarket.

Meanwhile, truly budget-friendly options have become increasingly rare. In 2010, shoppers could choose from 25 models priced around $20,000 or less. By last year, that number had slipped to just 20 models at the inflation-adjusted equivalent—roughly $30,000 today—underscoring how the entry-level car is slowly disappearing from the market.

The result is a striking shift in who can afford to buy a new car—reshaping the income profile of America’s car-buying public almost entirely.

The share of new vehicles purchased by U.S. households earning $100,000 or less held steady at roughly 50% to 60% for years—until the start of this decade, according to vehicle-registration data from S&P Global Mobility. Since then, that balance has shifted sharply. By last year, buyers in the $100,000-or-less income bracket accounted for just 36% of new-vehicle sales, highlighting how quickly the market has tilted toward wealthier households.

"It’s truly a K economy for us," said Brad Sowers, a car dealer in the St. Louis area who operates dealerships for General Motors, Stellantis—the maker of Jeep—and Kia.

Pricier Cars, Bigger Profits

The shift has helped automakers post stronger profits even as overall vehicle sales have softened in recent years. Over time, Detroit’s traditional Big Three—General Motors, Ford Motor Company, and Stellantis—have steadily phased out many smaller, entry-level models in the U.S., replacing them with higher-margin trucks and SUVs that deliver bigger returns.

Many of those discontinued car lines carried relatively thin profit margins. By contrast, former auto executives say core margins on large SUVs and pickup trucks can top 20%. The payoff is clear: in 2024, General Motors generated about $4,200 in operating profit per vehicle sold in North America—up sharply from roughly $3,000 per vehicle in 2018.

Executives at General Motors say affordability remains a priority, pointing to several small SUVs positioned as accessible entry-level options—most notably the Chevrolet Trax and the Buick Envista, both of which have gained traction with budget-conscious buyers.

"We’ve been able to create a portfolio where we can make money top to bottom," said Paul Jacobson, chief financial officer of General Motors, speaking at an event last month.

In February, Ford Motor Company said it plans to offer five models priced under $40,000 by the end of the decade—including at least one electric vehicle expected to come in at around $30,000, a move aimed at bringing more affordable options back to the market.

The shift toward pricier vehicles is clearly reflected in Jeep, the iconic off-road and SUV brand owned by Stellantis. A decade ago, Jeep’s U.S. lineup—made up of roughly half a dozen models—started at prices ranging from about $17,000 to $30,000, a far more accessible entry point than many of today’s offerings.

Today, starting prices for Jeep vehicles in the U.S. run from roughly $30,000 to about $65,000 for the upscale Jeep Grand Wagoneer—a model that can easily top $100,000 when fully loaded. The sharp rise in Jeep’s pricing has helped boost profits for parent company Stellantis, but it has also come alongside a noticeable slide in the brand’s U.S. market share.

Antonio Filosa, who took over as CEO of Stellantis last year, says restoring affordability is now a key strategy to win back customers. As part of that push, Jeep has begun making features like LED lighting and heated steering wheels standard or more affordable. Combined with broader price cuts, the changes can add up to about $4,000 in extra value on certain models, the company says.

“I need to unlock some of the things that you love about Jeep, make them more affordable,” Jeep brand CEO Bob Broderdorf told Reuters in December.

Jeff Rieder, head of benchmarking for Aon’s strategy and technology group, shared the findings during a Feb. 19 webinar. He suggested several forces may be driving the shift: a historically profitable 2025, strong investment returns, and insurers finally seeing real productivity gains from the technology systems they’ve spent years implementing. Together, those factors may be giving companies less urgency to expand headcount—at least for now.

“And the last thing that may be also driving this is with the advancements in artificial intelligence, what this could indicate is that companies are, we’ll say somewhat pausing on hiring plans to see just how artificial intelligence will be adopted within the organization,” Rieder said, “and how this is going to improve certain functions.”

Job openings across insurance and finance have pulled back sharply since their 2022 peak, signaling a cooling in demand for new talent. Data from the U.S. Bureau of Labor Statistics shows the annual average number of openings fell to 281,000 in 2025, and by December that figure had dropped to just 138,000—a striking decline that underscores how quickly the hiring landscape in the sector is shifting.

"I really do think that this might be kind of the indication of how AI is starting to influence a lot of these activities in terms of how companies are thinking about hiring," said Jeff Rieder as he presented the data—suggesting that artificial intelligence could already be quietly influencing workforce decisions across the industry.

The latest study from Aon and The Jacobson Group also reveals that 49% of property and casualty insurers still plan to add staff over the next year, showing that hiring hasn’t disappeared—it’s simply becoming more selective.

The survey captured insights from companies representing about 10% of the insurance industry’s total workforce. Most respondents came from the property/casualty sector (77%), followed by life and health insurers (19%) and reinsurers (3%), offering a broad snapshot of how different corners of the industry are approaching hiring in the year ahead.

Automation is emerging as a key driver of workforce changes. Companies that reduced headcount most often pointed to improvements in automation that allow the same work to be done with fewer employees.

At the same time, involuntary turnover across the broader insurance industry edged up by 0.6 percentage points year over year. Jeff Blair, senior vice president of executive search and business development at The Jacobson Group, said the increase is partly tied to rapid technology advancements and ongoing M&A activity, both of which are reshaping how insurers structure their teams.

Drawing on recent data, Jeff Rieder estimated that about half of the industry’s 4.4% involuntary turnover rate likely stems from performance management decisions, while the remaining portion may reflect companies quietly right-sizing their organizations—a subtle but telling sign of how insurers are reshaping their workforce.

At the same time, 12-month voluntary turnover edged down by 0.4 percentage points from January 2025, suggesting employees may be growing more cautious about changing jobs.

Based on his conversations with insurers—particularly in the property and casualty sector—Jeff Blair said many companies are doubling down on retention efforts, putting greater emphasis on programs designed to keep experienced employees engaged and on board.

“I hear a mantra of ‘I’d rather pay a stay bonus than a sign-on bonus,'” Blair said. “I don’t know to what extent that’s having an impact, but I think those sort of behaviors can definitely have a positive impact [on retention].”

Jeff Rieder also noted that stronger incentive programs introduced across the insurance industry over the past decade have helped curb voluntary turnover, alongside more competitive and comprehensive benefits packages.

Looking ahead, he said promotional pay increases are expected to land between 3.8% and 4%, while merit raises are projected to fall in the roughly 3.3% to 3.5% range—a sign that insurers are continuing to use compensation strategically to retain talent in a changing labor market.

These trends show that the “pendulum is definitely going back in favor of the insurance employer, for now,” Rieder said. That shift may portend well for turnover, “but could be more difficult as new entrants into the industry try to get in with lower hiring expectations.”

Key Takeaways From the Survey

• Confidence across the industry remains strikingly strong. In a survey by Aon and The Jacobson Group, only 2% of respondents expect revenue to decline over the next 12 months. Meanwhile, 72% anticipate revenue growth, and 26% believe results will hold steady—a clear sign that most insurers are heading into the coming year with optimism about their financial outlook.
• Headcount in the property and casualty (P/C) insurance sector rose 0.81% from January 2025 to January 2026—a modest gain that fell well short of expectations. According to Jeff Blair of The Jacobson Group, the increase was “significantly lower” than the projected 1.42%, highlighting a noticeable slowdown in workforce expansion across the industry.
• Among property and casualty insurers, personal lines companies are by far the most bullish on revenue growth. An impressive 90% expect revenue to rise, compared with 68% of commercial lines carriers and 64% of balanced lines insurers—a gap that highlights just how confident personal lines players are about the year ahead.
• Technology, claims, and underwriting roles are poised to lead hiring across the insurance industry in the coming year. As insurers invest more heavily in digital capabilities while managing rising claims complexity, demand for talent in these critical areas is expected to outpace most other functions.
• Insurers are targeting different talent levels across key functions. Compliance, analytics, and underwriting are the areas where companies are most likely to recruit experienced professionals, while operations and claims teams are expected to see the largest influx of entry-level hires—a hiring pattern that reveals how insurers are balancing specialized expertise with the need to build the next generation of talent.

Photo: RareStock - stock.adobe.com

The move comes just days after President Donald Trump directed the DFC to offer insurance “at a very reasonable price” to keep energy supplies and other commercial trade moving through the Gulf as oil prices surge. His remarks followed warnings from several governments, including the U.S., that a lack of insurance coverage was hindering ships from transiting the region. Trump also said the U.S. military could escort vessels through the Strait, though no formal plans have been announced.

The strait handles roughly a fifth of the world’s oil shipments, along with large volumes of gas, fertilizer, and other goods. But Iran has threatened to target vessels attempting to pass through the waterway, helping drive a sharp surge in global oil and fuel prices.

“DFC and Treasury are coordinating closely with CENTCOM on next steps in the implementation of this plan,” the development agency said, referring to the US military’s Central Command.

The DFC said it has identified “best-in-class, preferred American insurance partners.”

Even before the DFC’s announcement, private insurers were still offering coverage for ships planning to sail through the region. The Lloyd’s Market Association said Thursday that quotes were continuing to be issued, while broker Arthur J. Gallagher & Co. noted that the London insurance market remains willing and able to insure vessels transiting the strait.

Insurers have already shown interest in partnering with the agency to provide the reinsurance, according to a DFC official. The program’s structure, the official said, was shaped by extensive discussions with the insurance industry.

Private insurance coverage alone hasn’t been enough to persuade ships to sail through the Strait of Hormuz. Shipowners say the real concern is the safety of crews asked to enter what has effectively become a war zone.

The DFC said it is working with U.S. Central Command, but Treasury Secretary Scott Bessent said Friday afternoon he still doesn’t know whether U.S. naval escorts will be needed in the Gulf.

Photograph: An Iranian supertanker; photo credit: Jorge Guerrero/AFP/Getty Images

“This matter involves an egregious and overinflated first-party Hurricane Sally insurance claim, where the Defendants seek over $230 million for damages allegedly sustained to the Defendants’ condominium buildings that remain standing and in good condition,” reads the 2023 lawsuit complaint filed by Westchester and 15 other insurers that covered Portofino, one of the largest and best-known high-rise condos on Pensacola Beach.

The settlement agreement—filed in U.S. District Court in Pensacola—applies only to Westchester. The terms remain undisclosed, and the federal judge overseeing the case has not yet approved the deal. According to the condominium association’s attorney, the other insurers named in the lawsuit must still review the agreement before any broader resolution can move forward.

Westchester—part of Chubb and based in Alpharetta, Georgia—was represented by attorneys from the Cozen O’Connor law firm. Early in the case, the insurer argued that the scale of Portofino’s claim raised serious questions, noting that the condominium association had initially filed a proof of loss for just $6.5 million—a figure far below the damages later being sought.

Later, the condominium association hired its own appraiser, who estimated the losses at more than $233 million. That dramatic jump raised red flags for the insurers. In their request for a declaratory judgment, Portofino’s attorneys argued the figure "which raises significant questions concerning the appraiser’s interest and honesty, as well as the fraudulent nature of the claim and its supporting documentation."

Insurers argued that Hurricane Sally—a Category 2 storm that struck the Pensacola area in 2020—caused only limited damage. In fact, many units at Portofino appeared largely untouched, with some condos selling for as much as $800,000 even after the storm passed.

Insurers also argued that the condominium association failed to comply with a key cooperation clause in its policies—an obligation they say policyholders must meet during the claims process.

In 2023, Portofino asked the court to dismiss the insurers’ lawsuit, arguing that the appraisal panel had not yet determined a final loss amount. The condo association’s legal team also pushed back on Westchester’s fraud allegations, saying the original proof of loss covered only part of the damage. They added that the condominium’s appraiser had merely offered a professional opinion—not an inflated valuation meant to drive up the claim.

Attorneys representing Westchester could not immediately be reached for comment Wednesday. Ed Fleming, a lawyer for Portofino, said the settlement is confidential and declined to discuss its terms. Several other insurers involved in the dispute have already reached settlements, and more agreements are expected in the months ahead.

Photo: The Portofino condo buildings on Pensacola Beach. (AdobeStock)

Here’s how premium renewal rates shifted across other commercial insurance lines in February 2026:

• Commercial Auto: 5.18%, down from 5.62% in January
• Business Owners Policy (BOP): 6.81%, down slightly from 6.89% in January
• Commercial Property: 7.05%, down from 7.22% in January
• Umbrella: 8.84%, down significantly from 10.47% in January

On a year-over-year basis, Ivans found renewal premiums rising across several key lines—including commercial auto, BOP, general liability, commercial property, and umbrella—while workers’ compensation moved in the opposite direction, posting lower renewal rates.

Released each month, the Ivans Index provides a data-driven snapshot of market conditions, tracking how premium renewal rates are changing across the insurance industry’s most commonly placed commercial lines.

“Analyzing more than 120 million data transactions, the Ivans Index premium renewal rate change measures the premium difference year over year for a single consistent policy,” Ivans said in a press release. “Inclusive of more than 38,000 agencies and 700 carriers and MGAs, the Ivans Index is reflective of the premium rate change trends being experienced by all agencies and insurers across the U.S. insurance market.”

An arrest affidavit filed this week in Miami-Dade County Circuit Court reveals that investigators with the Florida Department of Financial Services uncovered a troubling scheme involving D&R Financial Services, a company owned by Salas. According to the filing, the firm not only offered pre-licensing education but also allegedly manipulated the system—bypassing the state’s testing vendor, Pearson VUE—by completing required online coursework and even taking licensing exams on behalf of applicants. Investigators say the operation effectively allowed unqualified individuals to obtain insurance licenses without ever doing the work themselves.

According to the arrest report, Cynthia Pinto, a 40-year-old Miami resident, allegedly served as one of the key organizers behind the operation. Court records and local news reports say 11 others were also taken into custody and booked into the Turner Guilford Correctional Center, as authorities continue to unravel what investigators describe as a coordinated effort to fraudulently obtain insurance licenses.

In April 2025, Rainier Miguel Salas pleaded guilty to charges tied to running the illicit testing center. A judge later sentenced him to six months of community service and two years of probation, bringing a formal judgment to a case that investigators say exposed a sophisticated scheme to game Florida’s insurance licensing system.

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Miguel Barrales will continue to serve as president, while Rafael Cedeño Camacho leads the company as chairman of the board and CEO, anchoring the leadership team as the newly rebranded insurer moves into its next phase of growth.

“This name not only reflects the company’s strong footprint in numerous states and financial stability, but also its shared identity and unified vision as part of the One Alliance family of companies,” Cedeño said in a news release.

Founded in 2003, Universal North America has been an endorsed partner of FAIA Member Services since 2015, a relationship the Florida Association of Insurance Agents recently highlighted in a blog post.

By the end of 2025, the company had roughly 20,000 policies in force across Florida—all of them covering personal residential properties—according to the Florida Office of Insurance Regulation.

That figure marked a slight decline from the first quarter of 2025, despite the carrier receiving approval in August 2025 to assume 10,000 personal residential policies from Citizens Property Insurance Corp., Florida’s state-backed insurer. Just a few years earlier, Universal North America carried roughly 57,000 policies in the state, but the company later scaled back its exposure after reporting significant net losses in 2019 and 2020—at the height of Florida’s insurance litigation crisis.

Last summer, AM Best assigned Universal North America a financial strength rating of “B (Fair).” The agency noted negative implications tied to uncertainty surrounding the financial strength of the insurer’s new parent company, 5B Alliance.