The California Board of Forestry and Fire Protection will resume work in March on rules that would set ember-resistant requirements for high-wildfire-risk zones encompassing about 2 million homes, Chair Terrence O'Brien said. Gov. Gavin Newsom had set a year-end deadline for finalizing the rules, which now are unlikely to take effect before mid-2029. "California is committed to getting Zone Zero right ... while balancing resilience to the next fire, the realities of the insurance market and what homeowners can reasonably afford," said Anthony Martinez, a spokesperson for Newsom.

Explore the 5 key trends we predict will shape the Insurance industry in 2026-- the year constant evolution becomes a competitive advantage.

Water and freezing damage have emerged as one of small businesses' biggest risks, with water damage tying with burglary and theft as the most common sources of small-business insurance claims, according to report from The Hartford. An analysis of over 1 million insurance policies found that water and freezing damage accounted for 20% of small-business claims this year, compared with 15% in 2015, the report says. Meanwhile, fire damage remained the costliest claim type, The Hartford says.

A Florida House subcommittee advanced a bill that would mandate that denials of insurance claims or reductions in claims payments "be made by a qualified human professional." APCIA and other industry groups raised concerns about the legislation, including that it might present challenges to the prompt resolution of claims. The groups also said Florida laws currently address the fair handling of claims.

The insurance industry is gradually adopting AI, but data security remains a major concern, according to Digital Insurance's AI Readiness Survey 2025, which found 41% of respondents citing data security issues as an obstacle to AI implementation. Meanwhile, only 7% of respondents said they agree completely that their tech stack is fully modernized, while 49% said they are training and upskilling current employees to use AI effectively, the survey found.

The record 43-day shutdown of the federal government is likely to have minimal effects on workers' compensation and the macroeconomy in the long run, the National Council on Compensation Insurance says in a report. Historical data shows that economic activity typically rebounds quickly after shutdowns, and back pay for furloughed government employees is unlikely to affect wage trends that influence metrics in the workers' comp space, NCCI says. However, a a Risk Placement Services report says that higher medical costs, cumulative trauma litigation and regulatory changes pose challenges for the workers' comp market in 2026.

Parts of Washington state are dealing with river flooding as the Pacific Northwest is experiencing the second atmospheric river to hit the region this week. Several rivers in Washington were at major flood stage as of late Tuesday, with the potential for record flooding in some areas as localized rain totals could reach 3 to 5 inches through Thursday, forecasters say.

The Federal Reserve headed into this week's policy meeting facing an unusual degree of division, with some economists predicting that three members could vote against a rate cut. However, many economists are predicting that the Fed will ultimately lower rates by a quarter point while signaling that it could take a more cautious approach going forward.

President Donald Trump plans to conduct final interviews this week with candidates for Federal Reserve chair, including forme