Cyber incidents, climate change, and business interruption have emerged as the primary risk concerns across key market segments in the insurance industry, according to the “RiskScan 2024” survey released by Munich Reinsurance America (Munich Re US) and the Insurance Information Institute (Triple-I).
The survey, which examines risks in five categories – insurance risks, market dynamics, natural disasters, emerging technologies, and property and casualty (P&C) insurance costs – gathered insights from five market segments: P&C insurance carriers, P&C agents and brokers, middle-market business decision-makers, small business owners, and consumers.
The findings highlight cyber incidents as a top concern across all segments, with climate change and business interruption also ranking high.
The heightened concern around climate change stems from the increasing frequency and severity of extreme weather, while business interruption remains a key issue due to lingering effects of the pandemic, natural disasters, and supply chain challenges.
The survey revealed that insurance professionals view risks with a broader perspective, while consumers focus on immediate, tangible risks such as climate change, cyber threats, and natural catastrophes. Non-peak perils, including thunderstorms, tornadoes, and floods, are also prominent concerns among consumers.
Despite recognition of major risks, businesses and consumers often lack adequate understanding of the importance of sufficient insurance coverage, particularly for flood and cyber risks. The findings point to a disconnect between risk awareness and the steps taken to mitigate potential losses.
Artificial intelligence was ranked as the top emerging technology risk across all market segments. Its influence is expected to grow as businesses and consumers grapple with its implications in various industries, including insurance.
Kerri Hamm (pictured above), executive vice president at Munich Re US, emphasized the importance of aligning insurance solutions with customer concerns.
“Understanding risk concerns of our customers is invaluable. The trends and insights uncovered in*RiskScan 2024 will enable the industry to better design, price, and deliver products that genuinely address what our customers care about the most,” Hamm said.
The survey underscores the need for education on key risks, particularly flood, cyber, and legal system abuse, to bridge the gap between awareness and action. Sean Kevelighan, CEO of Triple-I, noted that evolving societal risks highlight the need for informed insurance practices.
“The knowledge gap about insurance risks demonstrates the continued need for education of consumers and businesses, especially about flood, cyber, and legal system abuse. Increasing knowledge will be instrumental for the collective work needed to better manage and mitigate future risks,” Kevelighan said.
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