2025 Mutual Factor Midyear Update

The Mutual Factor Report, which launched in 2018, has become a highly anticipated staple for NAMIC members. The Mutual Factor Midyear Update, now in its third year, is well on its way to that status.

The midyear report, developed in partnership with Aon, provides an opportunity for readers to reflect on the close of the prior year, the challenges that remain for the industry, perspectives shared by the world’s leading reinsurers, and opportunities that lie ahead for mutual insurers.

The 2025 Mutual Factor Midyear Update briefly looks at results from full-year 2024, significant events occurring between January and mid-May 2025, as well as insights on current industry hot topics such as artificial intelligence and legal system abuse.

Key takeaways include:

• Hurricanes Helene and Milton led to another meaningful year in 2024 in terms of catastrophe losses, resulting in total estimated insured loss of double the historical average.
• Severe-convective-storm-related insured losses crossed the $50 billion mark for the second consecutive year and second time on record.
• Heightened catastrophe activity has continued in the first part of 2025 with record-setting wildfire and SCS events.
• Legal system abuse continues to be a headwind for the industry, with numerous states and jurisdictions navigating the challenges at varying levels of impact and maturity.
• In line with the overall industry’s increased spend on AI technology and tools, mutual insurers plan to make significant investments in 2025 and beyond.
• While excess and surplus lines is traditionally a sector that national and global carriers have participated in, more mutual and regional insurers are expanding into the space.
• Strong results and growing capital positions boosted competition among reinsurers during recent reinsurance renewals, driving more flexibility in terms and softening pricing from the heightened rate levels that took hold in 2023.