Welcome to Echo, your monthly update on business highlights and trends.
Today we're diving into AI, property and casualty and employee benefits. Let's dive in.
The EU AI Act is reshaping cyber insurance and AI.
The EU AI act sets seven key principles for responsible AI development, including mandatory human oversight and prioritizing societal and environmental well-being. AI systems are also categorized into four levels of risk.
Level 1: Minimal or no risk, such as your spam filters, which require no regulation.
Level 2: Limited risk systems like AI generated images or audio, which would require clear disclaimers.
Level 3: High risk AI used in critical sectors like transportation, healthcare, safety and law enforcement requiring strict oversight.
And level 4: Unacceptable risk — activities like social scoring and certain facial recognition systems, which are banned completely.
As AI evolves, the cyber insurance market must also evolve with updated policies that address these AI related risks.
Now, let's shift gears to P&C and the electric vehicle market.
The electric vehicle or EV market is growing, but manufacturing EV batteries has its unique challenges. Key risks include fire hazards, improper handling of lithium ion batteries and high voltage systems.
To reduce risks, EV battery manufacturers can, 1) identify key risks like improper chemical handling and faulty wiring, and 2) use specialized occupational safety coverage and the right liability insurance to mitigate these challenges with greater confidence.
Finally, Employee Benefits.
The 2025 NFP US Leave Management and HR Trend Report reveals that, while employers and employees are mostly aligned on priorities, there's still room for improvement.
For example, the common employer practice of not running maternity and short-term disability concurrently could be costing employers. Running these programs efficiently is vital to cost control, especially as employees are increasingly prioritizing caregiving leave, maternity leave and holiday benefits.
Meanwhile, only 68% of employers believe their employees fully understand their benefits packages. Employers can go further by expanding education, updating leave policies and offering supplemental benefits like caregiving coverage and more holidays.
For more on leave management, check out our leave management report and be sure to read our pharmacy benefits report and the executive benefits report for the latest on pharmacy and executive benefits trends.
That's all for this edition of Echo.
For more insights, check out the resources linked below. Until next time, thanks for tuning in!
NFP's January Echo, your source for quick insights into business and industry trends.
In this month’s Echo we’re diving into three key topics:
Artificial Intelligence (AI) and Cyber Insurance
The EU AI Act introduces new regulations for responsible AI development, including mandating human oversight. Businesses can protect their organizations with the right AI risk management strategy, including proper cyber liability coverage.
Electric Vehicle (EV) Manufacturing
As EV adoption grows, so do the unique risks tied to EV battery manufacturing, from fire hazards to chemical handling challenges. Businesses can practice safety drills, remain OSHA compliant and protect their operations with the right safety measures and insurance solutions.
HR and Benefits
Many employers are missing out on cost-saving opportunities by not running maternity leave and short-term disability concurrently.
Our 2025 NFP Leave Management and HR Trend Report highlights practical strategies to optimize these programs, enhance employee education and prioritize benefits like caregiving leave and holiday flexibility. Check out the leave management and HR report for the full story, or dive into our pharmacy benefits report and executive compensation and benefits report for additional specialized insights.
Thanks for watching Echo — stay tuned for next month’s insights!
