Maine Insurers Expand Services, Address Climate and Cyber Risks Amid Market Shifts

Maine’s insurance sector is actively adapting to evolving market demands through strategic acquisitions, expanded service offerings, and workforce development initiatives. Leading insurers such as United Insurance, Cross Insurance, and MMG Insurance are addressing emerging risks related to climate change, cybersecurity, and rising claims costs. United Insurance, with over 200 employees across Maine and New England, has extended its footprint by opening a Massachusetts office, acquiring Gallagher Insurance in northern Maine, integrating Kimball Korp Agency’s offices, and adding a financial services division via Barresi Financial. This expansion aims to enhance client coverage options and strengthen wealth management services. Cross Insurance, a family-owned business with 43 offices from Maine to Florida, highlights the increasing importance of cyber liability coverage, citing a rise in cyberattacks affecting businesses of all sizes. The insurer also acknowledges the insurance industry’s resilience amid climate-related challenges and is focused on educating clients about technology risks. MMG Insurance focuses on climate-related risk management through investment in sensor technology to prevent losses from temperature variations and water damage. Their approach includes partnerships providing clients with monitoring devices to mitigate weather-related property risks, such as windstorms and severe convective events. MMG also sees commercial lines growth outpacing personal lines and has expanded regionally beyond Maine. Across these insurers, there is a concerted effort to recruit and develop talent to counter workforce aging, featuring internships, apprenticeships, and leadership training programs to build future leaders. The insurers note upward pressure on premiums due to increased severe weather events, labor and materials cost inflation, and the sophistication of auto repairs owing to more computerized vehicles. Although Maine’s insurance rates remain relatively affordable nationally, rising claim costs and stricter underwriting are impacting premiums. The Maine Bureau of Insurance reports a 38% rise in building material costs and a 20% rise in labor costs since 2020, contributing to homeowners’ insurance rate increases. Maine’s insurance industry employs over 10,500 workers and significantly contributes to the state GDP with over $10 billion in direct premiums written. Overall, Maine insurers are strategically evolving with expanded geographical reach, integrated service offerings, and advanced risk mitigation technologies to meet changing client needs and regulatory landscapes in a complex insurance environment.