By Mary Sams, Senior Analysis Analyst
Cyber incidents, modifications in local weather, and enterprise interruption are the chief threat considerations amongst key market segments within the insurance coverage trade, in line with 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 offers a cross-market overview of high threat considerations amongst people throughout 5 key market segments: P&C insurance coverage carriers, P&C brokers and brokers, middle-market enterprise resolution makers, small enterprise house owners, and shoppers. The survey explores not solely P&C dangers, but additionally how financial, political, and authorized pressures form threat perceptions.
Methodology
To supply 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 usually give attention to a single viewers, however RiskScan 2024 is a multi-segment survey providing a complete view of threat 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 US.
This on-line survey was performed throughout gender, age, geographic area, family revenue, enterprise income, and firm measurement.
Two major cohorts make up 5 segments of members within the RiskScan analysis:
- shoppers and small enterprise house owners (n=700) and
- Insurance coverage trade members, which included carriers, brokers, and brokers in addition to center market companies (n=600).
Analysis members had been offered with varied dangers throughout 5 segments after which requested to pick their high three threat considerations.
Key Insights
A couple of-third of respondents selected financial inflation, cyber incidents, and local weather change as their high three considerations based mostly on insurance coverage dangers and market dynamics. All three of those replicate post-pandemic information subjects. Financial inflation has elevated during the last a number of years. Customers and small enterprise house owners 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 vital disparities within the rating outcomes between the 2 major cohorts throughout the analysis. Insurance coverage professionals are inclined to establish quite a lot of dangers and have vital consciousness of all threat classes, together with rising applied sciences. As anticipated, these audiences exhibit broader information and consciousness of threat switch and mitigation of recent and rising dangers. Customers 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 area” that exists between threat notion and motion. The gaps had been recognized alongside three key threat areas:
- Flood threat
- cyber dangers, and
- authorized system abuse
Flood threat was additionally indicated as one of many chief considerations for every viewers. Nevertheless, shoppers lack consciousness that flood occasions are usually excluded from house owner’s insurance policies. Trade professionals are extra conscious of flood protection exclusions, the significance of buying flood protection earlier than a flood occasion, and the chance 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 menace vector is consistently rising, increasing, and altering. Many individuals are educated about cyber dangers and are involved about easy methods to 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 training of shoppers and companies, particularly about flood, cyber, and authorized system abuse,” says Triple-I CEO Sean Kevelighan. “Growing information can be instrumental for the collective work wanted to higher handle and mitigate future dangers.”
The report consists of further outcomes for every of the 5 major audiences: shoppers (n=500), small enterprise house owners (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 main points. Triple-I goals to empower stakeholders by driving analysis and training on this and different key insurance coverage subjects. Comply with our weblog to maintain abreast of those important conversations.
