Insurance coverage Information: Shifts in threat and buyer sentiment
Continuous changes in the risk area are forcing insurers to reinvent their product offerings and adjust price levers in order to remain competitive and profitable. These changing dynamics are also affecting customer attitudes towards insurance products and services.
In this month’s analysis of Insurance News, Abbey Compton and I discuss how insurers and customers adapt to changes in risk. In the USA, for example, a survey shows that the satisfaction of individual life insurance customers has increased by 13 points compared to the previous year. This could suggest that the increased risk associated with COVID-19 is causing a longer-term and long overdue shift in consumer sentiment about life insurance.
In contrast, an analysis of the complaints filed with the Financial Ombudsman Service in the UK suggests that auto and motorcycle insurance customers are becoming less satisfied with the claims process. We look at the dynamics in this market and how the changes in recent years may have affected customer expectations and satisfaction.
Changes in risk profiles also drive changes in insurance prices. US homeowners are feeling the impact of FEMA’s new method of assessing flood risk on the insurance price. And while we saw some slowdown in commercial price increases in Q3, rising cyber insurance prices are still driving the overall surge in the US market.
Finally, let’s discuss one of my favorite pieces of news this year. My wife, Amy Saldanha, was featured on ABC News in an article about supply chain disruption and its impact on retailers like her. It even refers to one of my tried and true jokes about the difficulty of getting along in uncertain times.
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