Acrisure’s announcement to lay off several hundred employees amidst rising AI integration topped the charts of Insurance Journal’s Midwest region in 2025.
Midwest readers also paid close attention to State Farm’s decision to implement rate increases in Illinois, and the state’s insurance department’s unsuccessful efforts at getting the carrier to share insurance data.
Stories involving insurance fraud, theft and arson also topped the list.
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 plenty of eyeballs. Acrisure made the announcement in early October that it would lay off members of its accounting department. Five years ago Acrisure acquired AI company Tulco LLC’s insurance intelligence business. Acrisure said at the time of the acquisition that it would use AI capabilities to innovate in product development and insurance sales and marketing across its global network of commercial property and casualty, life and employee benefits brokerages. The deal 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 involved multiple persons reporting false information during the claims process to an insurance company in attempts to get insurance coverage after the incident occurred. She pleaded guilty and was sentenced on Aug. 28 to 12 months probation with ten months underlying prison time if her probation is violated. Two others involved, Michaela Foster and Rylie Kelley, were previously sentenced in December of 2024, for their roles in this insurance fraud scheme.
State Farm Implements 27% Rate Increase for Illinois Homeowners
State Farm announced in July that it would begin State Farm implementing a significant rate hike for Illinois homeowners, citing more frequent severe weather events and rising home replacement costs that are driving up the cost and frequency of claims. State Farm said it would raise homeowners rates by an average of 27% and require customers to carry a minimum 1% wind/hail deductible in their home insurance policy. The rate increases went into effect in July for new business and in August renewals. The decision drew the ire of politicians including Illinois Gov. J.B. Pritzker, who called for state lawmakers to enact a legislative solution that prevents insurers from carrying out major rate increases.
Michigan Construction Company Sued for Allegedly Scamming Customers
Michigan Attorney General Dana Nessel announced in July a lawsuit against Hummingbird Construction Co., LLC and its owner, Matthew Ashline, for allegedly scamming multiple customers by accepting deposits for construction projects never started and then failing to return the funds. The lawsuit claims Ashline collected deposits from customers in St. Clair, Monroe, Eaton and Washtenaw Counties to begin construction projects but failed to initiate the contracted work. In multiple cases, despite repeated requests from the consumers for refunds, Ashline allegedly delayed repayment or failed to return deposits.
Illinois Sues State Farm for Refusal to Release Homeowners’ Insurance Data
The State of Illinois is suing State Farm for refusing to provide nationwide homeowners’ insurance data at the request of the Illinois Department of Insurance (IDOI). Attorney General Kwame Raoul filed the lawsuit on Oct. 14 on behalf of Director of Insurance Ann Gillespie, who in November 2024 initiated an examination of State Farm’s homeowners’ data. The insurance department asked State Farm to provide complete nationwide zip-code level data including total homeowners’ premium collected, number of policies and claims and types of coverage provided. State Farm denied Gillespie’s request and says it didn’t 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 of Key after reviewing significant evidence that Key’s liabilities exceed its admitted assets. The court found that Key’s consistent underwriting losses, existing claims and negative policyholders’ surplus “demonstrate a substantially deteriorating financial position equating to insolvency.” The company reported -$16.3 million in net income in 2024, according to an NAIC filing.
Lawsuit Alleges Farm Bureau Financial Concealed Fraudulent Activities
A lawsuit filed in November by two former top investigators for Farm Bureau Financial Services alleges the company committed fraud, racketeering and wrongful termination. The lawsuit says the insurer’s management group knew of fraudulent activity committed by company employees and refused to report fraud to state regulators. The plaintiffs say they were fired two years ago after saying they would submit reports of fraudulent activity to state regulators even if it went against supervisors’ orders. The allegations include multiple instances of employees committing forgery, including one case of a Kansas agent allegedly forging at least 900 forms for his clients, with the clients’ consent, and another 100 forms without clients’ consent.
Owner of Historic Minnesota Resort Charged With Arson, Insurance Fraud
The owner of a historic Minnesota resort was charged in early December with arson and insurance fraud more than a year after a fire destroyed the property. Bryce Campbell, 41, of Two Harbors, Minnesota., was taken into custody in Southfield, Michigan for allegedly setting a fire on Feb. 6, 2024 that resulted in a total loss of the popular Lutsen Lodge. The lodge is located off Lake Superior in northwest Minnesota. 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, of the Columbus area, stole and misappropriated funds, including premiums for pre-need life insurance policies, commonly known as burial or funeral insurance, according to an investigation by the Ohio Department of Insurance. The misused funds were intended to cover funeral expenses and settle trust claims after funeral services were provided, but Chandler diverted the money for personal and business use, impacting 14 Ohio funeral homes serving their customers’ financial needs, ODI said. The insurer that issued the policies 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 Bally’s Corp. and the City of Chicago discriminating against White men who wanted to invest in a $1.7 billion casino project. The lawsuit alleges that the project offered a 25% ownership stake only to women and people of color. Bally’s devised the share-purchase program to adhere to a promise to bring under-represented groups into the project and help build wealth in the local community. However, such diversity, equity and inclusion practices have come under fire in the private sector and are getting rolled back by the federal government under the Trump administration.
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