Triple-I Weblog | RiskScan 2024 reveals danger priorities throughout the insurance coverage market

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 a wide range of commonalities and disparities throughout the 5 distinct goal segments, protecting 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 dimension. 

Two major cohorts make up 5 segments of individuals within the RiskScan analysis:

1. shoppers and small enterprise house owners (n=700) and

2. Insurance coverage trade individuals, which included carriers, brokers, and brokers in addition to center market companies (n=600). 

Analysis individuals had been introduced with numerous dangers throughout 5 segments after which requested to pick their high three danger issues. 

A couple of-third of respondents selected financial inflation, cyber incidents, and local weather change as their high three issues based mostly 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.  Customers and small enterprise house owners have skilled direct impacts with elevated prices and trade individuals have seen these impacts on elevated substitute prices and P&C insurance coverage premiums.

There are important disparities within the rating outcomes between the 2 major cohorts throughout the analysis. Insurance coverage professionals are inclined to establish a wide range of dangers and have important consciousness of all danger classes, together with rising applied sciences. As anticipated, these audiences exhibit broader data and consciousness of danger switch and mitigation of latest and rising dangers. Customers recognized a smaller variety of dangers related to extra rapid and direct impacts on themselves. 

The construction of RiskScan 2024 analysis yields a extra full understanding of the “white area” that exists between danger notion and motion. The gaps had 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, shoppers lack consciousness that flood occasions are sometimes excluded from house 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 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 how you can mitigate new cyber threats. Troubling tales have come to gentle because the frequency and severity of cyber threats develop.

“The data hole about insurance coverage dangers demonstrates the continued want for schooling of shoppers and companies, particularly about flood, cyber, and authorized system abuse,” says Triple-I CEO Sean Kevelighan. “Growing data will probably be instrumental for the collective work wanted to higher handle and mitigate future dangers.”

The report consists of extra 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).