Cyber crime, climate change, and business interruption are the chief risk concerns among key marketplace segments in the insurance industry, a new survey from Munich Reinsurance America Inc. and the Insurance Information Institute (Triple-I) showed.

“RiskScan 2024” revealed the top risk concerns in five categories – insurance risks, market dynamics, natural disasters, emerging technologies and property and casualty (P&C) insurance costs – in five key market segments: P&C insurance carriers, P&C agents and brokers, middle-market business decision makers, small business owners and consumers.

The overall top three perceived insurance risks of the 1,300 individuals surveyed were determined to be:

• 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.

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, the survey found.

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, the joint survey found.

“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 is vital, according to the report, as consumers and businesses 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.