Regulations and Updates to Watch for in 2025
While most regulations will be specific to each state and the type of license held, we’re diving into some topics you can expect to see changes to in the new year. Greater transparency, consumer protection, and adaptation to emerging risks will be key points in updated regulations for 2025.
Climate Risk and Resiliency
We’ve seen how Mother Nature is impacting even the most unlikely of places like Asheville, North Carolina during Hurricane Helene. Insurance rates have increased dramatically in Florida due to the increasingly more catastrophic hurricane seasons. Climate-related regulations are also expected to intensify requiring more data, scenario testing, and initiatives to mitigate pre-disaster risks. Producers will be expected to integrate these climate-related risks into their underwriting and investment strategies.
Consumer Protection and Marketing Policies
Most states have adapted the “Best Interest” part of their Annuities training in an effort to protect consumers. These changes will focus on differential pricing practices and create an oversight of marketing activities to prevent misleading or deceptive practices. Fair marketing policies to protect some of the most vulnerable populations are going to be at the forefront of 2025 regulatory updates.
Essential Health Benefits (EHBs)
Under the Affordable Care Act, health insurance plans must cover at least 10 categories of services such as emergency services, prescription drugs and pregnancy, maternity and newborn care. Changes to state EHB benchmark plans are slated for 2026 or later, but states have begun preparing updates in 2025 with changes, adding services such as adult dental and new mental health treatments.
Artificial Intelligence and Predictive Analytics
With the increasing use of artificial intelligence, regulatory changes are expected for consumer fairness, transparency and data privacy. Predictive models are also being more widely used in underwriting and for processing claims to ensure accuracy and prevent discrimination.
InsuranceStudy will continue to bring you regulations and updates in the insurance and CFP industries.
InsuranceStudy has been providing continuing education for Insurance Professionals and Certified Financial Planners for more than 20 years. Our insurance experts are dedicated to bringing you convenient, affordable, and compliant courses. Follow us on Facebook, Instagram or LinkedIn for more updates.
