Triple-I Weblog | RiskScan 2024 reveals threat 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 concentrate on 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 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 main cohorts make up 5 segments of contributors within the RiskScan analysis:

1. customers and small enterprise homeowners (n=700) and

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

Analysis contributors had been introduced with varied dangers throughout 5 segments after which requested to pick out their prime three threat issues. 

Multiple-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 mirror post-pandemic information matters. Financial inflation has elevated over the past a number of years.  Shoppers and small enterprise homeowners have skilled direct impacts with elevated prices and business contributors 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 main cohorts throughout the analysis. Insurance coverage professionals are inclined to establish a wide range of dangers and have vital consciousness of all threat classes, together with rising applied sciences. As anticipated, these audiences exhibit broader data and consciousness of threat switch and mitigation of recent and rising dangers. Shoppers recognized a smaller variety of dangers related to extra quick 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 issues for every viewers. Nevertheless, customers 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 main concern in all 5 market segments. Most audiences within the analysis, each shopper and industrial, really feel unprepared as this menace vector is consistently rising, increasing, and altering. Many individuals are educated about cyber dangers and are involved about learn how to 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 customers and companies, particularly about flood, cyber, and authorized system abuse,” says Triple-I CEO Sean Kevelighan. “Growing data might be instrumental for the collective work wanted to higher handle and mitigate future dangers.”

The report contains extra outcomes for every of the 5 main 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).