The US property casualty insurance industry is poised to maintain profitability for several years, with the private auto segment having provided a substantial boost in 2024, S&P Global Market Intelligence says in a report. The sector's combined ratio is forecast to be 99.2% this year, up from an 11-year low of 96.5% in 2024, S&P says. The report notes challenges such as social inflation, wildfire losses and concerns about rate trends in certain lines.

California lawmakers approved a bill that would mandate that lenders pay homeowners at least 2% interest on insurance claim payments held in escrow after disasters. This change would close a gap in existing state law, which allows lenders to keep the interest earned on these funds. The bill is awaiting Gov. Gavin Newsom's signature.

Federal weather forecasting agencies are undergoing cuts that could lead to major gaps in the availability of meteorological data, posing challenges in mitigating disaster risks, experts said at the National Association of Insurance Commissioners' Summer National Meeting. Private companies cannot compensate fully for the loss of data from agencies such as the National Oceanic and Atmospheric Agency and its National Weather Service, which historically have provided critical, up-to-date information for risk modeling, experts said.

US District Judge Rita Lin ruled that California drivers can move forward with a class action alleging that Tesla made misleading claims about its vehicles' self-driving capabilities for eight years. Lin wrote in her opinion that thousands of people likely saw on Tesla's website the claim that its vehicles were equipped with hardware to enable full self-driving.

New York City is temporarily closing its beaches due to expected dangerous surf and currents produced by Hurricane Erin, whose tropical-storm-force winds extend 265 miles from its center. The Category 2 storm also has prompted beach closures in New Jersey, Delaware and North Carolina, where evacuation orders have been issued for parts of the Outer Banks.

An extreme heat warning for Southern California has been issued by the National Weather Service as a heat wave is elevating wildfire risk in the Southwest. Temperatures today are forecast to hit 94 in downtown Los Angeles, up to 108 degrees in valleys north of the city and 120 degrees in Death Valley.

The National Weather Service's Climate Prediction Center forecasts a warmer-than-usual fall for most of the US, with above-normal temperatures likely in the Northeast, interior West, Southern Florida and New England. The forecast, which is based on El Nino-Southern Oscillation-neutral conditions, also predicts below-normal precipitation for the northern Plains, the Rockies and the Great Basin, while above-normal precipitation is expected in the eastern third of the country and much of Alaska.

Traders are increasingly positioning for a half-point rate cut by the Federal Reserve at its September meeting. The most notable position, at roughly $10 million, could yield $100 million if the Fed delivers a 50 basis-point reduction. "As the market readies for Powell's speech at Jackson Hole, we'll argue that the biggest risk for Treasuries is if the Fed Chief chooses to throw cold water on the widely anticipated September rate cut," Ian Lyngen, head of US rates strategy at BMO Capital Markets, said.

Treasury Secretary Scott Bessent said that revenue from President Donald Trump's sweeping tariffs is expected to increase significantly, with estimates surpassing the earlier projection of $300 billion and the primary goal of reducing federal debt before considering rebates for Americans. Higher-than-expected tariff income would be set to play a key role in the administration's fiscal plans.