In areas of Florida, Louisiana and Oklahoma, rates rose 25% or more between 2019 and 2024.

Worsening drought conditions will increase risk across the western U.S.

The dryness is expected to persist through spring after weeks of scant rainfall and a late-winter heat spell.

Under Delaware law, insurance policies are interpreted to favor broad coverage and align with the insured's reasonable expectations.

Travelers' premium reductions follow similar actions from other insurers in the state earlier this year.

The regulation would have classified many small captive insurance arrangements as tax-avoidance arrangements.

This would be the first time a product in the market for insurance-linked securities specifically targets data-center risk.

"No scheme is too outrageous for us to investigate," said California Insurance Commissioner Ricardo Lara.