While homeowners-insurance policy exclusions can burden consumers with significant out-of-pocket expenses, expanding policies to fill coverage gaps creates a new set of challenges, such as affordability issues, lower consumer demand as rates rise and regulatory approval for risk-based rates, the GAO says.

State Auto Financial Corp. says it will strengthen reserves by approximately $15 million for 2013s fourth quarter, as it continues to deal with program business, now in runoff, written through Risk Evaluation & Design LLC.

Property and casualty insurer Chubb Corp reported a better-than-expected quarterly profit as its claims fell 30% and announced a $1.5 billion share buyback.