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 impartial 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, masking the complete vary of insurance coverage patrons and sellers throughout the USA.

This on-line survey was carried out throughout gender, age, geographic area, family earnings, enterprise income, and firm measurement. 

Two main cohorts make up 5 segments of members within the RiskScan analysis:

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

2. 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 high three danger issues. 

Multiple-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 mirror post-pandemic information subjects. Financial inflation has elevated over the past a number of years.  Shoppers and small enterprise house owners have skilled direct impacts with elevated prices and trade members 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 main cohorts throughout the analysis. Insurance coverage professionals are inclined to establish quite a lot 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 recent and rising dangers. Shoppers 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 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. Trade 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 main concern in all 5 market segments. Most audiences within the analysis, each shopper and business, really feel unprepared as this menace vector is continually rising, increasing, and altering. Many individuals are educated about cyber dangers and are involved about methods to mitigate new cyber threats. Troubling tales have come to mild 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 can 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 main audiences: customers (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).