Community Spotlight: Ohio Mutual Insurance on AI, NFIP shutdown risk, and litigation funding
BUCYRUS, OH-Ohio Mutual Insurance Group executive Todd Boyer is calling attention to three pressure points for carriers and agents: practical AI adoption, the immediate impact of a federal shutdown on NFIP flood insurance, and the growing cost of third-party litigation funding.
AI belongs in the workflow-just not on autopilot
Boyer says the company is using AI for efficiency, research, and repetitive tasks-always with a human in the loop for key decisions. That balance matters for underwriting judgment, claims handling, and regulatory expectations.
For insurers, the quickest wins sit in document intake, triage, and service. Think summarizing loss histories, routing FNOL, surfacing insights for adjusters, and assisting agents with faster quote responses. Keep decision rights with people, and use AI as a force multiplier.
- Guardrails: human review on adverse actions, clear model governance, version control, and audit trails.
- Data discipline: limit PII exposure, apply retention rules, and monitor drift.
- Fairness checks: periodic bias testing and outcome monitoring.
- Vendor scrutiny: SOC 2/ISO attestations, explainability options, and incident response plans.
Government shutdowns stall the NFIP-and real estate closings
When the federal government shuts down, the National Flood Insurance Program is unable to issue new policies or renewals. Lenders won't close on properties in floodplains without valid coverage, so transactions pause instantly.
That ripple hits agents, homebuyers, and sellers within hours. A simple checklist reduces fallout: pre-bind known renewals ahead of risk dates, prepare private flood alternatives, and add contingency language to purchase contracts. Keep a communication plan ready for lenders and realtors.
FEMA's NFIP page provides current program status and resources you can share with clients.
Third-party litigation funding: quiet capital, bigger severity
Boyer also flagged third-party litigation funding, where outside investors finance lawsuits for a portion of the recovery. That capital can extend case duration, increase plaintiff leverage, and push up defense and indemnity costs-pressure that ultimately flows into rates.
- Claims playbook: early severity signals, tighter reserve reviews, and mediation strategies built around expected funding dynamics.
- Policy language: consider clarity on fee arrangements and disclosure requirements where permitted.
- Discovery: pursue transparency on funding to assess incentives, when allowed by jurisdiction.
- Market watch: track state legislative activity and appellate trends; align reinsurance where social inflation spikes.
For a neutral overview of the funding market and data gaps, see the GAO report on third-party litigation funding.
Financial strength and community focus
Ohio Mutual recently earned an A.M. Best "A" (Excellent) rating for the 33rd straight year, signaling consistent financial stability. The company also continues its partnership with the Children's Hunger Alliance, reinforcing its community commitment.
What insurance pros can do this quarter
- Stand up an AI review board: inventory current tools, assign owners, and set approval criteria for new use cases.
- Run an NFIP readiness drill: create pre-bind and communication workflows you can trigger if a shutdown looms.
- Tune litigation analytics: add features to flag funded-case characteristics and adjust reserves earlier.
- Brief distribution teams: equip agents with plain-language talking points on AI use and flood coverage contingencies.
The takeaway is simple: use AI where it speeds the work without handing over judgment, prep for NFIP lapses like you would a storm, and update claims and legal strategies to reflect new funding realities. Small moves now beat big corrections later.
Your membership also unlocks:
