Risk Concerns of Insurers

On Feb 13, 2025

According to a recent survey, cyber incidents, changes in climate, and business interruption are the chief risk concerns among key marketplace segments in the insurance industry.

The survey, RiskScan 2024, from Munich Reinsurance America Inc. (Munich Re US) and the Insurance Information Institute (Triple-I) 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.

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. 

Source: Insurance Information Institute

To access more business news, visit NJB News Now.

Related Articles: