By Mary Sams, Senior Analysis Analyst
Cyber incidents, modifications in local weather, and enterprise interruption are the chief danger issues amongst key market segments within the insurance coverage trade, in response to RiskScan 2024, a brand new survey from Munich Reinsurance America Inc. (“Munich Re US”) and the Insurance coverage Info Institute (Triple-I) reveals.
RiskScan 2024 supplies a cross-market overview of prime danger issues amongst people throughout 5 key market segments: P&C insurance coverage carriers, P&C brokers and brokers, middle-market enterprise resolution makers, small enterprise homeowners, and customers. The survey explores not solely P&C dangers, but in addition how financial, political, and authorized pressures form danger perceptions.
Methodology
To provide a compelling snapshot of cross-market views, Munich Re US and Triple-I engaged unbiased market researcher RTi Analysis in the summertime of 2024 to survey 1,300 US-based people.
Market surveys sometimes deal with a single viewers, however RiskScan 2024 is a multi-segment survey providing a complete view of danger perceptions and yielding comparative outcomes between audiences. The important thing insights current quite a lot of commonalities and disparities throughout the 5 distinct goal segments, overlaying the complete vary of insurance coverage consumers and sellers throughout the USA.
This on-line survey was performed throughout gender, age, geographic area, family earnings, enterprise income, and firm measurement.
Two major cohorts make up 5 segments of members within the RiskScan analysis:
- customers and small enterprise homeowners (n=700) and
- Insurance coverage trade members, which included carriers, brokers, and brokers in addition to center market companies (n=600).
Analysis members have been introduced with varied dangers throughout 5 segments after which requested to pick their prime three danger issues.
Key Insights
A couple of-third of respondents selected financial inflation, cyber incidents, and local weather change as their prime three issues primarily based on insurance coverage dangers and market dynamics. All three of those replicate post-pandemic information matters. Financial inflation has elevated during the last a number of years. Shoppers and small enterprise homeowners have skilled direct impacts with elevated prices and trade members have seen these impacts on elevated alternative prices and P&C insurance coverage premiums.
There are important disparities within the rating outcomes between the 2 major cohorts inside the analysis. Insurance coverage professionals are likely to determine quite a lot of dangers and have important consciousness of all danger classes, together with rising applied sciences. As anticipated, these audiences exhibit broader information and consciousness of danger switch and mitigation of recent and rising dangers. Shoppers recognized a smaller variety of dangers related to extra speedy and direct impacts on themselves.
The construction of RiskScan 2024 analysis yields a extra full understanding of the “white house” that exists between danger notion and motion. The gaps have been recognized alongside three key danger areas:
- Flood danger
- cyber dangers, and
- authorized system abuse
Flood danger was additionally indicated as one of many chief issues for every viewers. Nonetheless, customers lack consciousness that flood occasions are sometimes excluded from home-owner’s insurance policies. Business professionals are extra conscious of flood protection exclusions, the significance of buying flood protection earlier than a flood occasion, and the probability of those occasions occurring.
Cyber incidents are a major concern in all 5 market segments. Most audiences within the analysis, each shopper and business, really feel unprepared as this risk vector is continually rising, increasing, and altering. Many individuals are educated about cyber dangers and are involved about how one can mitigate new cyber threats. Troubling tales have come to gentle because the frequency and severity of cyber threats develop.
“The information hole about insurance coverage dangers demonstrates the continued want for schooling of customers and companies, particularly about flood, cyber, and authorized system abuse,” says Triple-I CEO Sean Kevelighan. “Rising information will probably be instrumental for the collective work wanted to raised handle and mitigate future dangers.”
The report contains extra outcomes for every of the 5 major audiences: customers (n=500), small enterprise homeowners (n=200), insurance coverage carriers (n=200), insurance coverage brokers and brokers (n=200), and center market companies (n=200).
Obtain the complete RiskScan 2024 report back to evaluation the small print. Triple-I goals to empower stakeholders by driving analysis and schooling on this and different key insurance coverage matters. Observe our weblog to maintain abreast of those important conversations.
