RiskScan 2024

To produce a compelling snapshot of cross-market views, Munich Re US and the Triple-I engaged independent market researcher RTi Research in the summer of 2024 to survey 1,300 US-based individuals from five marketplace segments across the insurance value chain. 

They were asked to rank their top concerns related to Insurance Risk, Natural Disasters, Emerging Technologies, P&C Insurance Costs, and Market Dynamics. The result, RiskScan 2024, provides those who monitor the insurance industry with unprecedented insight into the risk perception of the overall marketplace. By understanding the risks that span across multiple market segments, together we can foster meaningful dialogue and develop innovative solutions that benefit society as a whole.

Cyber incidents, changes in climate, and business interruption were rated as primary concerns across all audiences.

Consumers, businesses, and the insurance industry all face significant cyber threats. From businesses that are at risk of customer data breaches to digitally connected homes, we are now in a world of ever-evolving cyber risks. Not surprisingly, cyber incidents were ranked as a top concern among all market segments.

Fueled by consumer responses, changes in climate — evidenced by the increasing frequency and severity of extreme weather — ranked among the top three overall risks.

Although business interruption understandably wasn’t a top concern for consumers, businesses are subjected to loss events such as extreme weather caused by changes in climate, cyber attacks, and supply chain issues that could potentially disrupt their operations.

Consumers focus on high-frequency perils, while insurance professionals are also more cognizant of devastating ones.

All surveyed market segments showed concern about non-peak perils such as thunderstorms, tornadoes, and floods. This is most likely due to their rise in frequency and severity.

Insurance professionals, however, also expressed concern about less frequent but potentially more devastating perils, namely earthquakes.

The top concerns across all groups reflect major events that have recently dominated US headlines. Although economic inflation was the top market dynamic concern for all, when it came to insurance risks, cyber and changes in climate stood out as the key concerns across all segments. 

Consumers highly ranked only a select number of risks — tangible ones like changes in climate and cyber — whereas insurance professionals maintained a more balanced mindset that considered both immediate risks like changes in climate, as well as emerging risks such as new technologies and per- and polyfluoroalkyl substances (PFAS).

Daylight exists between perceptions and actions.

There is a gap between being concerned and taking action to address the risk across segments. Meaningful opportunities to reduce the gaps exist for flood, cyber risk, and legal system abuse. Consumers were less concerned about flood than insurance professionals were. This gap suggests consumers might not be aware they are at risk for flooding, and traditional homeowners policies typically exclude this peril.

Another potential gap between knowledge and action is cyber risks. Although identified by all audiences as a significant concern, there is still high a proportion of uninsured cyber risks in both the commercial and personal line space. Many individuals continue to underestimate the threats that affect them.

Factors driving the rise in P&C insurance costs showed a third gap. While all audiences identified inflation as a major contributor, insurance professionals also pointed to legal system abuse as a large factor — something consumers and businesses did not rank as a top concern. 

Recognizing gaps in knowledge and action in areas such as flood, cyber, and legal system abuse, provides opportunities to educate and narrow the gaps.

By understanding the risks that span across multiple market segments, together we can foster meaningful dialogue and develop innovative solutions that benefit society as a whole. 

With a focus on prediction, prevention, and protection, Munich Re US seeks creative ways to deliver responsible, future-focused solutions, empowering you to be braver and bolder today and ensure a resilient tomorrow.