The insurance industry and the public sector are facing significant challenges and changes in the U.S. market, particularly in areas of risk that more states are assuming. Here are some key points to consider:

1. Role of the Public Sector in Property Risk: States are increasingly becoming insurers of last resort, especially in addressing property risks such as wind and flood damage. The aftermath of events like Hurricane Ian has raised questions about how these injuries will be covered. Insurers must work closely with states and customers to clarify coverages and risks, especially with the start of Atlantic Hurricane Season 2023.

2. Expanding State Involvement in Risk Mitigation: Beyond property risks, states are taking on a more significant role in addressing other risks. For example, the State of Washington recently launched its public long-term care program, with Missouri and California considering similar moves. This shift has implications for customers and the long-term care products traditionally offered by the insurance industry.

3. Data and Risk Assessment: The insurance industry uses data to assess and underwrite risks effectively. However, there are ongoing discussions at the state level regarding limitations on the types of data carriers can use. As insurers increasingly incorporate AI capabilities into their workforce, these data limitations could impact their risk assessment processes.

In conclusion, the evolving risk landscape and the changing roles of states and the insurance industry require close collaboration, clear communication with customers, and adaptability to regulatory changes. Staying informed about emerging trends and regulations is essential for insurers to effectively navigate these challenges and continue providing valuable coverage to their customers and constituents.