Research from Munich Re and Triple-I Provides Key Insights into Risk Perception, Knowledge Gap
MIAMI–(BUSINESS WIRE)–Cyber incidents, changes in climate, and business interruption are the chief risk concerns among key marketplace segments in the insurance industry, a new survey from Munich Reinsurance America Inc. (“Munich Re US”) and the Insurance Information Institute (Triple-I) reveals.
The survey, RiskScan 2024, reveals the top risk concerns in five categories – insurance risks, market dynamics, natural disasters, emerging technologies, and property and casualty (P&C) insurance costs – among individuals in five key market segments: P&C insurance carriers, P&C agents and brokers, middle-market business decision makers, small business owners, and consumers.
Among the key findings are the overall top three perceived insurance risks:
- Cyber incidents are a primary concern in all five market segments.
- Changing climate, demonstrated by increasing frequency and severity of extreme weather, is a risk driven by consumer concern.
- Business interruption – a persistent effect of the pandemic, natural catastrophes, and ongoing supply chain issues – is a top concern for the insurance industry and businesses.
Other key results from RiskScan 2024 include:
- Insurance professionals took a balanced view of insurance risks while consumers focused on a select number of immediate, tangible risks such as changes in climate, cyber incidents, and natural catastrophes.
- Consumers are concerned about non-peak perils such as thunderstorms, tornadoes, and floods.
- Businesses and consumers recognize the actual risks yet lack understanding of the importance of adequate coverage, especially for flood and cyber risk.
- Artificial intelligence ranks as the top emerging technology across all five market segments.
“Understanding risk concerns of our customers is invaluable,” said Kerri Hamm, EVP–head of cyber underwriting, client solutions, and business development at Munich Re US. “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.”
Risk assessment across various audiences is vital and enables insurance providers to identify where concerns intersect and where knowledge gaps exist. If not adequately informed, consumers and businesses may risk being uninsured or underinsured, while insurers face the risk of price inadequacy.
“As societal risks – natural and manufactured – continue to evolve, Triple-I is proud to partner with Munich Re US on RiskScan 2024,” said Triple-I CEO Sean Kevelighan. “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,” he added.
Survey Methodology – The RiskScan survey was commissioned by Munich Re US, in collaboration with Triple-I. Munich Re US and the Triple-I engaged independent market researcher RTi in the summer of 2024 to survey 1,300 US-based individuals from five marketplace segments across the insurance value chain. This online survey was conducted across gender, age, geographic region, household income, business revenue, and company size and segmented by homeowner status, business ownership, role within their organization, and affiliation with the P&C insurance industry. They were then asked about their top concerns related to insurance risks, natural disasters, emerging technologies, P&C insurance costs, and market dynamics.
About Munich Reinsurance America Inc.
Munich Reinsurance America Inc. (“Munich Re US”) is one of the largest reinsurers in the United States. We provide reinsurance coverages, specialty reinsurance, and risk management solutions to commercial and personal lines insurance carriers, agents and brokers, program administrators, and managing general agents. Our admitted and non-admitted insurance company affiliates offer specialty insurance products. We provide insurance carriers with white label products to help protect against the devastating effects of natural catastrophes and emerging risks, while our Innovation Lab offers client solutions in a rapidly evolving technology risk landscape. We believe that by looking out for our clients’ best interests with innovative risk solutions, we can help build more resilient communities and close insurance gaps.
About Insurance Information Institute (Triple-I)
With more than 50 insurance company members — including regional, super-regional, national and global carriers — the Insurance Information Institute (Triple-I) is the #1 online source for insurance information in the U.S. The organization’s website, blog and social media channels offer a wealth of data-driven research studies, white papers, videos, articles, infographics and other resources solely dedicated to explaining insurance and enhancing knowledge.
Unlike other sources, Triple-I’s sole focus is creating and disseminating information to empower consumers. It neither lobbies nor sells insurance. Triple-I offers objective, fact-based information about insurance – information that is rooted in economic and actuarial soundness. Triple-I is affiliated with The Institutes.
Contacts
MEDIA CONTACTS
Munich Re: Heather Hardwick, 856-701-2867, HHardwick@munichre.com
Triple-I: Mark Friedlander, 904-806-7813, MarkF@iii.org