Los Angeles Real Estate Services 10/8/25 Los Angeles Real Estate Services 10/8/25

Responsible AI Deployment Linked to Better Business Outcomes: EY

As broader adoption of AI technologies continues to accelerate, companies that implement more advanced Responsible AI (RAI) measures are pulling ahead while others stall.

According to the second Responsible AI (RAI) Pulse survey from the EY organization, four in five respondents said their company has improved innovation (81%) and efficiency and productivity gains (79%), while about half report boosts in revenue growth (54%), cost savings (48%), and employee satisfaction (56%).

The global survey of large corporations also reveals that nearly all organizations report financial losses and widespread impact from compliance failures, sustainability setbacks, and biased outputs.

According to EY, Responsible AI adoption involves defining and communicating principles before advancing to implementation and governance. The transition from principles to practice happens through 10 RAI measures that embed commitments into operations.

The survey suggests greater adherence to RAI principles is correlated with positive business performance. For instance, those respondents with real-time monitoring are 34% more likely to see improvements in revenue growth and 65% more likely to see improved cost savings.

On average, organizations surveyed have already implemented seven RAI measures, and among those yet to act, the vast majority plan to do so. Across all measures, fewer than 2% of respondents reported having no plans for implementation.

“The widespread and increasing costs of unmanaged AI underscore a critical need for organizations to embed practices deep within their operations to not only reduce risks but also accelerate value creation,” commented Raj Sharma, EY Global Managing Partner, Growth & Innovation. “This is not simply a compliance exercise; it is a driver of trust, innovation, and market differentiation. Enterprises that view these principles as a core business function are better positioned to achieve faster productivity gains, unlock stronger revenue growth, and sustain competitive advantage in an AI-driven economy.”

EY’s survey sights were gathered in August and September 2025 from 975 C-suite leaders across 11 roles and 21 countries. All respondents had some level of responsibility for AI within their organization. Respondents represented organizations with over US$1 billion in annual revenue across all major sectors and 21 countries in the Americas, Asia-Pacific, Europe, the Middle East, India and Africa.

Other findings include:

Inadequate controls for AI risks lead to negative impacts: Almost all (99%) organizations surveyed reported financial losses from AI-related risks, with nearly two-thirds (64%) suffering losses of more than US$1 million. On average, the financial loss to companies that have experienced risks is conservatively estimated at US$4.4 million. The most common AI risks are non-compliance with AI regulations (57%), negative impacts to sustainability goals (55%) and biased outputs (53%).

C-suite knowledge gaps in identifying appropriate controls: On average, when asked to identify the appropriate controls against five AI related risks, only 12% of C-suite respondents answered correctly. Chief risk officers, who are ultimately responsible for AI risks, performed slightly below average (11%). As agentic AI becomes more prevalent in the workplace and employees experiment with citizen development, the risks — and the need for appropriate controls — are only set to grow.

Citizen developers highlight governance and talent readiness gaps: Organizations face a growing challenge in managing “citizen developers” — employees independently developing or deploying AI agents. Two-thirds of surveyed companies allow this activity in some form, yet only 60% of these companies provide formal, organization-wide policies and frameworks to ensure these agents are deployed in line with responsible AI principles. Half also report they do not have a high level of visibility in employee use of AI agents.

Companies that actively encourage citizen development were more likely to report a need for talent models to evolve in preparation for a hybrid human-AI workforce. These organizations cite the scarcity of future talent as their top concern.

The full RAI survey findings can be found here.

Source: EY

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Los Angeles Real Estate Services 9/29/25 Los Angeles Real Estate Services 9/29/25

Insurance Industry Charitable Foundation Welcomes Individuals to Become Members

On June 1, the Insurance Industry Charitable Foundation (IICF) officially launched the IICF Global Membership Program, opening membership to individual insurance professionals across the U.S. and worldwide. Individuals currently working in insurance, retired insurance professionals, and interns and professionals in the industry now have the opportunity to amplify their efforts to advance social good through IICF with the IICF Global Membership Program. The program is designed for those who are passionate about giving back in their communities and forward-thinking about their careers; it provides them with the opportunity to engage on an individual basis with the foundation that serves to unite the insurance industry in philanthropy and leadership.

Those wishing to join the membership can join from three tiers of benefits: Global Member, Executive Member or Founding Circle Member, where they can access philanthropic opportunities, a nonprofit directory resource, professional development programming and networking. In addition to these and other tiered benefits, members will have opportunities to connect with like-minded socially conscious insurance professionals, including peer-level to executive leadership, across the globe through the IICF Membership Directory, and will have access to educational content such as whitepapers and impact reports through the Member Resource Library.

For years IICF has heard from individuals working in the industry who would like to give back and be involved more directly through IICF. With feedback from those individuals in mind, this program is a natural extension of IICF’s nearly thirty-year history convening the insurance industry in volunteerism, awarding community grants and leadership initiatives to offer unique networking, professional development and community engagement interests to today’s insurance professionals.

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Los Angeles Real Estate Services 9/26/25 Los Angeles Real Estate Services 9/26/25

Are Credit Scores Fueling Hidden Insurance Costs for Consumers?

Across the South and the United States, homeowners’ insurance rates are rising, with some states seeing an increase of over 50%. Experts say that this issue is contributing to an ongoing housing crisis. While insurance companies have attempted to explain away this increase, critics have pointed to a major culprit creating this inequity: credit-based insurance pricing.

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Credit-based insurance pricing is a method where an insurance company uses a consumer’s “credit-based insurance score” to assess their likelihood of filing a claim and then determines the cost of their premium using this information. However, it’s important to note that your credit-based insurance score differs from your regular credit score. Although they are determined by the same factors — payment history, outstanding debt, credit length, pursuit of new credit, and credit mix — your credit-based insurance score weighs these factors differently because it is evaluating you for a different risk.

Insurance companies argue that a consumer’s credit score is an indicator of their risk. Because of this, they should be able to use this information to set rates that accurately reflect that risk. They also argue that, were they not able to use credit-based pricing, “lower-risk” (i.e., higher-credit) consumers would have to pay higher premiums to offset the risk of “high-risk” consumers. Interestingly, the Federal Trade Commission also proposed that credit-based scoring made insurers more willing to offer coverage to individuals considered “higher-risk,” albeit at a higher premium.

You might wonder whether this practice of credit-based pricing is legal. The answer is, perhaps shockingly, mostly “yes.”

Ultimately, the laws for credit-based insurance pricing vary by state, with California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, and Utah all having strict laws regarding how insurance companies can use credit-based insurance scores. For example, California prohibits insurance companies from using credit history when setting homeowners’ insurance rates. The Washington state Senate approved a bill this year that would have required a study of credit-based scores, but the bill died in the House.

However, most of the other 43 states in the US have no laws regarding credit-based pricing for insurance companies. One report by the Consumer Federation of America claimed that “a typical homeowner with a ‘low’ credit score will pay nearly $2,000 more each year — or almost double the price — for their insurance premiums than their otherwise identical neighbor with a ‘high’ credit score.” This stark statistic shows the drastic effect that credit-based pricing can have on consumers.

What makes this even more alarming is that credit-based insurance pricing is a phenomenon known to disproportionately affect low-income and minority families. A study from 2004 found that “race/ethnicity proved to be the most robust single predictor of credit scores,” and that “in most instances it had a significantly greater impact than education, marital status, income and housing values.” Over two decades later, the debate rages on about the inherent racial bias of the credit scoring system, considering its origins.

What Can Consumers Do About Credit-Based Insurance Pricing?

While consumers with low credit might think that they are simply stuck with paying more for their homeowner’s insurance, there are steps they can take if they are in this situation to soften the blow of an increased premium. One of the best ways to save money on insurance is by “bundling” policies.

Many insurance carriers offer discounts to customers who purchase not only their homeowner’s insurance with the company but also their auto insurance and other types of insurance, such as motorcycle or boat insurance.

Consumers may also want to consider reviewing the terms of their policies. Sometimes, it might be possible to lower your rate by purchasing a “cheaper” policy with different terms, such as a higher deductible or lower limit, though it is important to consider the requirements and risks of this decision. If you have a mortgage, your lender might have strict requirements for the insurance you must carry. Furthermore, if a major incident occurs, such as a natural disaster, a lower policy may not provide you with the protection you need.

Another recommendation is to keep shopping around for other insurance providers. Particularly when it comes time to renew the policy and the insurance provider changes the premium, policyholders can take the time to get new quotes from additional providers. While insurance companies will often try to get you to stay with them with “rewards” for loyalty (such as claims forgiveness), the truth is that an insured might save more money in both the short and long term by switching providers.

Some insurance companies with other specialties have also made it a policy not to use credit checks as part of the underwriting process to determine insurance premiums. For example, car insurance providers Cure Auto Insurance, Dillo Insurance, and Empower Insurance offer options for consumers that do not involve credit-based insurance scores. Although there are currently no homeowner’s insurance companies that have pledged not to use credit-based insurance scores while determining rates, these car insurance companies may set a powerful precedent that could extend to the rest of the insurance industry.

Nevertheless, insurance companies in most states are still able to use credit-based insurance scores to help determine customer premiums. Until a change occurs, homeowners can avoid breaking the bank with their insurance by being savvy consumers, taking steps like bundling policies and shopping around for the best rates.

By Ted Patestos | September 25, 2025

Theodore (Ted) Patestos is co-founder and CEO of Tiger Adjusters, a public adjuster firm with offices in Atlanta, Orlando, Palm Beach, Houston, Philadelphia, Dayton, and in Trenton, Toms River and Westwood, New Jersey.

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Los Angeles Real Estate Services 5/28/19 Los Angeles Real Estate Services 5/28/19

Rethinking Assault & Battery Liability in Commercial Real Estate

It all begins with an idea.

September 21, 2025 by Corey Alison

In urban centers across the U.S., property owners and managers are welcoming a return to pre-2020 levels of foot traffic in retail corridors, mixed-use developments, and multifamily buildings. While this rebound signals a healthy recovery for local economies, it also revives a longstanding and often underestimated exposure: assault and battery (A&B) liability.

Many property owners assume that their general liability policies will protect them if violence occurs on their premises. Unfortunately, this assumption can leave them dangerously exposed.

As insurance professionals, it's our job to illuminate these gaps and help clients navigate the evolving landscape of premises liability, especially as social inflation, litigation funding, and public expectations reshape the risk environment.

Rising Foot Traffic, Rising Exposure

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A&B claims are not new, but they are becoming more visible, more costly, and more complex to manage. As cities and commercial areas see renewed activity, landlords face evolving legal and social expectations around security and tenant safety.

Several converging factors, from shifting security practices to rising jury awards, are making this risk more pressing and harder to ignore.

Social inflation and nuclear verdicts. Juries are awarding increasingly large sums in A&B cases, driven by public sentiment that favors plaintiffs and the rise of third-party litigation funding. In this environment, implementing reasonable security measures may not be enough for landlords to avoid liability.

Changing tenant dynamics. The COVID pandemic disrupted tenant relationships. Many property owners were restricted from evicting problematic tenants, creating backlogs and introducing behavioral risks that persist even as legal restrictions have eased.

Shifts in security practices. In an effort to manage costs and adapt to changing technologies, many owners have reduced on-site security staff in favor of surveillance systems. While cameras offer valuable evidence and enhance security monitoring, they do not actively prevent incidents as they occur.

Increased foot traffic in entertainment zones. Properties located near nightlife venues, college campuses, or in busy downtown districts are more susceptible to incidents simply due to higher volumes of visitors and heightened activity at night.

The Coverage Misunderstanding

A significant driver of underinsurance in A&B is misunderstanding what many general liability policies actually cover.

In the current market, a large number of commercial general liability (CGL) policies contain explicit exclusions for A&B, and in many cases, for firearms-related incidents, as well. Even if a policy does not mention firearms separately, the broader A&B exclusion often applies to losses involving weapons.

Property owners may mistakenly believe that absence of a specific firearms exclusion implies coverage. However, if an assault or battery incident involves a firearm, it is likely to be excluded under the standard A&B language. This nuance is easily overlooked, yet critical, especially as gun-related incidents continue to draw public attention and legal scrutiny.

Additionally, A&B exclusions or sublimits may also apply to related risks such as abuse or molestation. This is particularly relevant for properties that include amenities like gyms, pools, or childcare facilities.

Layering Coverage (It's Not Just About Limits)

When brokers and risk advisors discuss A&B exposure with clients, the conversation often focuses on limits--how high and how broad.

However, this focus on dollar amounts can obscure crucial details about how coverage functions in a claim scenario, what is included or excluded, and how different policy structures impact a client's true protection.

Effective coverage goes far beyond policy form names and requires a nuanced understanding of form language and practical risk realities.

It's crucial to clarify:

Defense costs. Are defense costs included within policy limits or outside of them? Defense inside the limits can erode available indemnity dollars rapidly, especially in drawn-out cases.

Sublimits. A few specialized programs offer sublimits for A&B coverage on a monoline basis. The size of the sublimits can be as low as 50/100 but can also be as high as $1 million. In addition, defense is normally inside limits and excess markets typically will not sit over these programs.

Exclusion carve-outs. Brokers should examine whether abuse and molestation or firearms exclusions are nested within broader A&B exclusions and how these interact with sublimits.

In many cases, a creative solution for A&B coverage is necessary to comply with lenders.

While the market for this coverage is limited with few carriers offering tailored solutions, brokers should still explore these options. Even if a policy includes restrictive terms such as defense costs inside limits or partial exclusions, providing your client with additional avenues for protection is beneficial.

Practical Steps for Property Owners

Beyond insurance placements, property owners have a proactive role to play in mitigating A&B risk.

Cameras and surveillance technologies have become essential tools for many landlords. High-definition footage not only assists in post-incident investigations but can also serve as evidence demonstrating that reasonable precautions were taken--always an important factor when defending against premises liability claims.

However, cameras alone are not a panacea. Owners should continue to evaluate their physical security protocols, including:

Lighting and visibility. Well-lit exteriors and common areas reduce blind spots and deter criminal activity.

Access control. Restricting entry through fob or smartphone-based systems helps ensure that only authorized individuals can enter residential or private spaces.

On-site security. Even as staffing models evolve, a human security presence remains a strong deterrent and provides immediate intervention capability.

Tenant screening and property management. Strengthening tenant vetting processes and responding promptly to complaints or behavioral issues reduces the likelihood of confrontations escalating into violence.

Ultimately, a layered approach that combines physical security, technology, and tailored insurance coverage offers the best protection for landlords and managers.

Looking Ahead: A Shared Responsibility

As urban areas continue to thrive, the risk landscape will only grow more complex. Insurance alone cannot eliminate the liability exposures tied to A&B incidents, but when combined with robust risk management strategies, it can provide crucial financial protection.

Brokers must take the lead in educating clients, clarifying policy language, and demystifying what exclusions really mean in practice. At the same time, property owners should remain vigilant, investing in both operational controls and appropriate coverage.

In an era of heightened jury awards and public scrutiny, "business as usual" is no longer enough. By working together, brokers, insurers, and property owners can better safeguard the businesses, tenants, and communities that make our urban environments thrive.

WRITTEN BY: Corey Alison

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