Focus on Litigation Transparency, Cybersecurity, and Insurance Reforms
United States – The Risk and Insurance Management Society (RIMS) has outlined its key legislative priorities for 2025, focusing on risk management advocacy and policy reforms. As a leading organization supporting risk professionals, RIMS aims to address critical issues impacting businesses, insurers, and nonprofit organizations through legislative and regulatory action.
The Public Policy Committee at RIMS plays a vital role in analyzing emerging risks, recommending policies, and educating its members on legislative developments. In 2025, RIMS’ top priorities include third-party litigation funding transparency, cybersecurity regulations, flood insurance program reforms, nonprofit tax policies, and workforce development incentives.
Key Legislative Priorities for 2025
Increased Transparency in Third-Party Litigation Funding
One of RIMS’ top priorities is advocating for greater transparency in third-party litigation funding (TPLF). This practice involves external investors financing lawsuits in exchange for a portion of the final settlement or judgment.
- Why it matters: TPLF has contributed to the rise in “nuclear verdicts”—exceptionally high damage awards that negatively impact businesses, insurers, and the legal system.
- RIMS’ stance: The organization calls for clearer regulations, particularly concerning foreign entities funding litigation in the US, to prevent undue influence on the judicial process.
Federal Data Privacy and Cybersecurity Standards
With digital threats increasing, RIMS is advocating for a national framework for data privacy and cybersecurity to replace the current patchwork of state-level regulations.
- Why it matters: Businesses operating across multiple states face compliance challenges due to differing laws on data privacy and breach notifications.
- RIMS’ stance: The organization supports a federal law that streamlines data protection requirements, ensuring consistency and stronger cybersecurity measures.
Long-Term Reauthorization of the National Flood Insurance Program (NFIP)
RIMS is pushing for long-term stability in the National Flood Insurance Program (NFIP), which provides crucial flood insurance coverage for homeowners and businesses.
- Why it matters: The NFIP ensures private insurers remain engaged in the flood insurance market, funds flood zone mapping, and supports building code improvements.
- RIMS’ stance: A long-term extension of NFIP will provide financial security for property owners and reduce uncertainty in flood-prone areas.
Protecting Nonprofit Tax Exemptions
Changes in tax policies under the new administration have raised concerns that nonprofit organizations may face new taxes on non-donation income.
- Why it matters: Tax-exempt groups play a vital role in public welfare, education, and professional development.
- RIMS’ stance: The organization, as part of the ASAE’s Community Impact Coalition, is actively working to educate lawmakers on the importance of nonprofit tax protections.
Support for Workforce Development Through 529 Plan Expansion
RIMS will continue advocating for the Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477), which seeks to expand 529 savings plans to cover professional certifications and job training.
- Why it matters: This bill would provide tax advantages to individuals pursuing career growth, mid-career transitions, or alternative skill development.
- RIMS’ stance: The organization played a key role in supporting the bill in the last Congress and will actively lobby for its passage in 2025.
The Road Ahead for Risk Management Advocacy
RIMS remains committed to shaping public policy that enhances risk management, business resilience, and economic security. Through continued engagement with lawmakers, regulatory bodies, and industry stakeholders, RIMS aims to drive meaningful legislative action that benefits its members and the broader business community.