Global Insurance In 2025: Todd Rissel's Take On Risks And Opportunities

The insurance industry in 2025 is at a crossroads, driven by a combination of factors. Economic indicators are stabilizing, inflation trends are beginning to ease, risks are evolving, and the debate over a potential market softening is growing. Insurers, analysts, and industry leaders are navigating the opportunities and challenges in this landscape. Todd Rissel, Chairman and CEO of e2Value, aims to shed light on the implications of these changes and highlight why precision in property assessment is crucial now.

More than three decades of experience have allowed Rissel to understand the insurance and valuation sector's complexities profoundly. He began his professional journey in 1982, honing his skills in business operations and property appraisal before transitioning into a leadership role in insurance valuations. In 1999, Rissel co-founded e2Value, a leading SaaS provider in property valuation across North America. He significantly contributed to the firm's development of valuation tools that have helped insurers, banks, and mortgage companies understand and manage risk effectively.

Rissel reflects on the global insurance outlook as 2025 unfolds. He observes that industry players are struggling with conflicting signals. On one hand, economic stabilization, cooling inflation, and rate increases have eased some pressures. This led some experts to argue that the insurance market is softening. What does this imply? It means lower premiums and increased competition among insurers, which contrasts with the hard market conditions of recent years, where high claims costs and economic uncertainty drove rates upward. 

On the other hand, persistent risks like extreme weather events drive major losses. For instance, in California, insured losses from wildfires in the past year have been estimated at up to $40 billion. Convective storms and tornadoes (more unpredictable than hurricanes) are also causing financial strain. Analysts point to steady growth in life insurance and moderate gains in non-life sectors, emphasizing technological integration and enhanced risk modeling. 

Rissel sees the tension between easing economic conditions and ongoing risk exposure fueling the debate on whether insurers can afford to lower premiums without jeopardizing their financial stability. "Forecasting losses from well-documented events like hurricanes is relatively straightforward because we have historical data that provides clear benchmarks. But when it comes to convective storms and tornadoes, it's a different challenge. These events are more erratic. They don't have the defined patterns that make modeling easier. That unpredictability is what makes them so difficult to account for using conventional methods," he explains.

Rissel's analysis reveals that accurate property valuation is crucial when insurers face discrepancies between expected and actual losses. The precision of modern valuation tools can help calibrate risk models and ensure that homeowners receive fair and consistent coverage.

From a consumer perspective, Rissel encourages homeowners to remain proactive. "Expect the unexpected," he advises. He stresses that they must understand their risk profile and be vigilant because even if some insurance rates decrease, individual risk factors still play a major role in determining premiums. Essentially, he urges homeowners to ensure their coverage is based on accurate, up-to-date valuations and not only market trends.

Given the insurance market outlook for this year, e2Value emerges with a crucial role in providing cutting-edge valuation solutions. The company, known for its web-based tools that integrate detailed data analytics with user-friendly interfaces, can help insurers determine property replacement costs precisely. With e2Value providing a standardized, transparent method for property evaluation, it supports better underwriting and claims management, and empowers consumers with the information to make informed decisions about their coverage.

The debate over whether the market is truly softening remains unresolved. However, Todd Rissel's insights emphasize that accurate property valuation is essential, regardless of market conditions. Insurers and homeowners can navigate this uncertain landscape more confidently by staying ahead of risk factors and leveraging modern valuation tools.

Image Credit: e2Value

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