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 usually give attention to 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, masking the total vary of insurance coverage patrons and sellers throughout the US.

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

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 trade contributors, which included carriers, brokers, and brokers in addition to center market companies (n=600). 

Analysis contributors had been offered with numerous dangers throughout 5 segments after which requested to pick out their prime three danger issues. 

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 subjects. Financial inflation has elevated during the last a number of years.  Customers and small enterprise homeowners have skilled direct impacts with elevated prices and trade contributors 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 main cohorts throughout the analysis. Insurance coverage professionals are inclined to determine a wide range 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. Customers 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 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. Nevertheless, customers 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 main concern in all 5 market segments. Most audiences within the analysis, each shopper and industrial, really feel unprepared as this menace vector is continually rising, increasing, and altering. Many individuals are educated about cyber dangers and are involved about the way 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 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 consists of further 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).