Must-Read Insurance Journal Highlights from the Midwest Region in 2025
Acrisure’s announcement to lay off several hundred employees amidst rising AI integration topped the charts of Insurance Journal’s Midwest region in 2025. This significant move reflects the ongoing transformation within the insurance industry as technology continues to reshape traditional practices.
Midwest readers also paid close attention to State Farm’s decision to implement rate increases in Illinois. The state’s insurance department faced challenges in its efforts to compel the carrier to share crucial insurance data, highlighting the ongoing tension between regulatory bodies and insurance companies.
Additionally, stories involving insurance fraud, theft, and arson captured public interest, revealing the darker side of the industry.
Top Insurance Journal Midwest Stories of 2025
Acrisure to Lay Off 400 Employees, Citing Tech Advancements and AI Integration
Acrisure’s decision to lay off 400 employees due to advancements in technology and AI integration drew significant attention. The announcement, made in early October, specifically targeted members of its accounting department. Five years prior, Acrisure had acquired AI company Tulco LLC’s insurance intelligence business, with plans to leverage AI capabilities for innovation in product development and insurance sales across its global network. This acquisition was valued at approximately $400 million.
Kansas Woman Sentenced for Insurance Fraud
Kenna Robinson, 50, pleaded guilty in the Douglas County District Court to one felony count of insurance fraud. Robinson was involved in a scheme where multiple individuals reported false information during the claims process to obtain insurance coverage after an incident. She was sentenced on August 28 to 12 months of probation, with ten months of underlying prison time if her probation is violated. Two accomplices, Michaela Foster and Rylie Kelley, were previously sentenced in December 2024 for their roles in this fraud case.
State Farm Implements 27% Rate Increase for Illinois Homeowners
In July, State Farm announced a significant rate hike for Illinois homeowners, citing the increasing frequency of severe weather events and rising home replacement costs. The average homeowners’ rates would rise by 27%, and customers would be required to carry a minimum 1% wind/hail deductible in their home insurance policies. This decision, effective for new business in July and renewals in August, drew criticism from politicians, including Illinois Governor J.B. Pritzker, who urged state lawmakers to find a legislative solution to prevent such major rate increases.
Michigan Construction Company Sued for Allegedly Scamming Customers
Michigan Attorney General Dana Nessel announced a lawsuit in July against Hummingbird Construction Co., LLC and its owner, Matthew Ashline, for allegedly scamming customers. The lawsuit claims Ashline accepted deposits for construction projects that were never initiated and failed to return the funds. Customers from St. Clair, Monroe, Eaton, and Washtenaw Counties reported that despite repeated requests for refunds, Ashline delayed or failed to return their deposits.
Illinois Sues State Farm for Refusal to Release Homeowners’ Insurance Data
The State of Illinois is suing State Farm for its refusal to provide nationwide homeowners’ insurance data requested by the Illinois Department of Insurance (IDOI). Attorney General Kwame Raoul filed the lawsuit on October 14, following an examination initiated by IDOI Director Ann Gillespie in November 2024. The department sought comprehensive nationwide zip-code level data, including total homeowners’ premiums collected, number of policies, claims, and types of coverage. State Farm denied the request, asserting it did not violate state law.
Kansas’ Key Insurance Placed Into Liquidation
Key Insurance, a Kansas-based insurer specializing in non-standard auto, was placed into liquidation in March after a court ruled the company insolvent. The Shawnee County District Court ordered the liquidation after reviewing evidence that Key’s liabilities exceeded its admitted assets. The court found that Key’s consistent underwriting losses and negative policyholders’ surplus indicated a deteriorating financial position, equating to insolvency.
Lawsuit Alleges Farm Bureau Financial Concealed Fraudulent Activities
A lawsuit filed in November by two former top investigators for Farm Bureau Financial Services alleges that the company committed fraud, racketeering, and wrongful termination. The plaintiffs claim that management was aware of fraudulent activities by employees but failed to report them to state regulators. Allegations include multiple instances of forgery, including one case where a Kansas agent allegedly forged at least 900 forms with client consent and another 100 without consent.
Owner of Historic Minnesota Resort Charged With Arson, Insurance Fraud
The owner of a historic Minnesota resort was charged in December with arson and insurance fraud following a fire that destroyed the property. Bryce Campbell, 41, was arrested in Southfield, Michigan, for allegedly setting the fire on February 6, 2024, which resulted in the total loss of the popular Lutsen Lodge located off Lake Superior. Campbell faces three felony counts of arson and one felony count of insurance fraud.
Former Ohio Insurance Agent Sentenced to Probation for $1.4M Theft
A former Ohio insurance agent was sentenced to five years of probation for thefts exceeding $1.4 million. Rhonda Chandler, from the Columbus area, misappropriated funds, including premiums for pre-need life insurance policies intended for funeral expenses. The Ohio Department of Insurance found that Chandler diverted these funds for personal and business use, impacting 14 Ohio funeral homes. The insurer has fully reimbursed the affected funeral homes, and restitution will be directed to the insurer.
Chicago Sued by White Men Barred From Bally’s Casino Investment
A lawsuit filed in February alleges that Bally’s Corp. and the City of Chicago discriminated against White men who sought to invest in a $1.7 billion casino project. The lawsuit claims the project offered a 25% ownership stake only to women and people of color, a move designed to promote diversity and inclusion. However, such practices have faced criticism and are being rolled back under the current federal administration.
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Acrisure’s announcement to lay off several hundred employees amidst rising AI integration topped the charts of Insurance Journal’s Midwest region in 2025. This significant move reflects the ongoing transformation within the insurance industry as technology continues to reshape traditional practices.
Midwest readers also paid close attention to State Farm’s decision to implement rate increases in Illinois. The state’s insurance department faced challenges in its efforts to compel the carrier to share crucial insurance data, highlighting the ongoing tension between regulatory bodies and insurance companies.
Additionally, stories involving insurance fraud, theft, and arson captured public interest, revealing the darker side of the industry.
Top Insurance Journal Midwest Stories of 2025
Acrisure to Lay Off 400 Employees, Citing Tech Advancements and AI Integration
Acrisure’s decision to lay off 400 employees due to advancements in technology and AI integration drew significant attention. The announcement, made in early October, specifically targeted members of its accounting department. Five years prior, Acrisure had acquired AI company Tulco LLC’s insurance intelligence business, with plans to leverage AI capabilities for innovation in product development and insurance sales across its global network. This acquisition was valued at approximately $400 million.
Kansas Woman Sentenced for Insurance Fraud
Kenna Robinson, 50, pleaded guilty in the Douglas County District Court to one felony count of insurance fraud. Robinson was involved in a scheme where multiple individuals reported false information during the claims process to obtain insurance coverage after an incident. She was sentenced on August 28 to 12 months of probation, with ten months of underlying prison time if her probation is violated. Two accomplices, Michaela Foster and Rylie Kelley, were previously sentenced in December 2024 for their roles in this fraud case.
State Farm Implements 27% Rate Increase for Illinois Homeowners
In July, State Farm announced a significant rate hike for Illinois homeowners, citing the increasing frequency of severe weather events and rising home replacement costs. The average homeowners’ rates would rise by 27%, and customers would be required to carry a minimum 1% wind/hail deductible in their home insurance policies. This decision, effective for new business in July and renewals in August, drew criticism from politicians, including Illinois Governor J.B. Pritzker, who urged state lawmakers to find a legislative solution to prevent such major rate increases.
Michigan Construction Company Sued for Allegedly Scamming Customers
Michigan Attorney General Dana Nessel announced a lawsuit in July against Hummingbird Construction Co., LLC and its owner, Matthew Ashline, for allegedly scamming customers. The lawsuit claims Ashline accepted deposits for construction projects that were never initiated and failed to return the funds. Customers from St. Clair, Monroe, Eaton, and Washtenaw Counties reported that despite repeated requests for refunds, Ashline delayed or failed to return their deposits.
Illinois Sues State Farm for Refusal to Release Homeowners’ Insurance Data
The State of Illinois is suing State Farm for its refusal to provide nationwide homeowners’ insurance data requested by the Illinois Department of Insurance (IDOI). Attorney General Kwame Raoul filed the lawsuit on October 14, following an examination initiated by IDOI Director Ann Gillespie in November 2024. The department sought comprehensive nationwide zip-code level data, including total homeowners’ premiums collected, number of policies, claims, and types of coverage. State Farm denied the request, asserting it did not violate state law.
Kansas’ Key Insurance Placed Into Liquidation
Key Insurance, a Kansas-based insurer specializing in non-standard auto, was placed into liquidation in March after a court ruled the company insolvent. The Shawnee County District Court ordered the liquidation after reviewing evidence that Key’s liabilities exceeded its admitted assets. The court found that Key’s consistent underwriting losses and negative policyholders’ surplus indicated a deteriorating financial position, equating to insolvency.
Lawsuit Alleges Farm Bureau Financial Concealed Fraudulent Activities
A lawsuit filed in November by two former top investigators for Farm Bureau Financial Services alleges that the company committed fraud, racketeering, and wrongful termination. The plaintiffs claim that management was aware of fraudulent activities by employees but failed to report them to state regulators. Allegations include multiple instances of forgery, including one case where a Kansas agent allegedly forged at least 900 forms with client consent and another 100 without consent.
Owner of Historic Minnesota Resort Charged With Arson, Insurance Fraud
The owner of a historic Minnesota resort was charged in December with arson and insurance fraud following a fire that destroyed the property. Bryce Campbell, 41, was arrested in Southfield, Michigan, for allegedly setting the fire on February 6, 2024, which resulted in the total loss of the popular Lutsen Lodge located off Lake Superior. Campbell faces three felony counts of arson and one felony count of insurance fraud.
Former Ohio Insurance Agent Sentenced to Probation for $1.4M Theft
A former Ohio insurance agent was sentenced to five years of probation for thefts exceeding $1.4 million. Rhonda Chandler, from the Columbus area, misappropriated funds, including premiums for pre-need life insurance policies intended for funeral expenses. The Ohio Department of Insurance found that Chandler diverted these funds for personal and business use, impacting 14 Ohio funeral homes. The insurer has fully reimbursed the affected funeral homes, and restitution will be directed to the insurer.
Chicago Sued by White Men Barred From Bally’s Casino Investment
A lawsuit filed in February alleges that Bally’s Corp. and the City of Chicago discriminated against White men who sought to invest in a $1.7 billion casino project. The lawsuit claims the project offered a 25% ownership stake only to women and people of color, a move designed to promote diversity and inclusion. However, such practices have faced criticism and are being rolled back under the current federal administration.
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