Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 255

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1A
Chunk 255
---
 as a result of
many factors, including cyclical changes in the insurance industry, competition, and innovation and emerging technologies.

The property and casualty insurance industry has
historically been characterized by soft markets (periods of relatively high levels of price competition, less restrictive underwriting
practices, and generally low premium rates) followed by hard markets (periods of capital shortages resulting in a lack of insurance availability,
relatively low levels of price competition, more selective underwriting of risks, and relatively high premium rates). During soft markets,
we may lose business to other carriers offering competitive insurance at lower rates. We may also choose to reduce our premiums or limit
premium increases leading to a reduction in profit margins and revenues. Our industry is also influenced by general economic conditions,
which could reduce overall premium volume for us and our competitors. Additionally, the industry could be impacted by changes in customer
preferences, including customer demand for direct, point-of-sale, or other non-traditional distribution channels. Consolidation within
the industry could also influence future growth and profit potential.

Innovation and emerging technologies continue
to greatly impact the insurance industry. If we are unable to keep pace with the technological changes that our competitors implement,
we may not be able to attract and retain customers, adequately price risks, or operate as efficiently as our competitors. In addition,
emerging technologies in the automotive industry such as autonomous vehicles, driver-assistance and accident-avoidance features, sensor
technology, and other forms of automation may reduce the future need for, or decrease the future pricing of, our auto insurance products.

Our success depends primarily on our ability
to underwrite risks effectively and price our insurance products appropriately.

The nature of the insurance business is such that
pricing must be determined before the underlying costs are fully known. This requires significant reliance on estimates and assumptions
used in pricing our policies. If we fail to appropriately price the risks we insure or if our claims experience is more frequent or severe
than our underlying risk assumptions, our profitability may be negatively affected. If we overestimate the risks we are exposed to, we
may overprice our products, and new business growth and retention of existing business may be adversely affected. The ability to effectively
underwrite risks and price products appropriately is subject to a number of uncertainties, including:

●availability of sufficient reliable data and our ability to properly analyze available data;

●market and competitive conditions;

●regulatory or legislative changes;

●selection and application of appropriate pricing techniques; and

●adverse changes in claims