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Global customers look to insurers for innovative solutions amid escalating risks: Geneva Association

21st November 2023 - Author: Akankshita Mukhopadhyay

In the face of escalating global risks, a new survey by The Geneva Association reveals that customers worldwide are increasingly turning to insurers for solutions that go beyond traditional coverage.

geneva-association-logoThe report, titled “The Value of Insurance in a Changing Risk Landscape,” sheds light on the concerns of customers in the world’s six largest insurance markets – the U.S., China, Japan, U.K., France, and Germany.

The past few years have been marked by significant turbulence, with the COVID-19 pandemic, the Russia-Ukraine war, and a global economic slowdown underscoring the fragility of our interconnected world.

The survey indicates that as geopolitical uncertainties, climate risks, and rapid technological advancements persist, systemic risk is on the rise, challenging the conventional insurance model of risk pooling and redistribution.

A major finding of the global customer survey is the increasing worry about future insurability, especially regarding natural catastrophes, longevity, and cyber risks. Over 50% of respondents anticipate that obtaining insurance will become more difficult or even impossible in the future.

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To address this concern, the report suggests that insurers can play a crucial role by offering services that extend beyond traditional risk transfer.

This includes actively engaging in risk prevention services and collaborating with governments to tackle the most severe risks.

Notably, more than 80% of customers express interest in non-traditional risk services, indicating a growing demand for comprehensive risk management solutions.

Jad Ariss, Managing Director of The Geneva Association, emphasises the need for insurers to adapt to the evolving risk landscape.

He states, “The increasing intensity and impact of risks today, from climate to cyber, are creating testing conditions for insurers. Yet the case for the continued value of insurance is clear.”

Kai-Uwe Schanz, Director Socio-economic Resilience at The Geneva Association and author of the report, underscores the challenges presented by climate and cyber risks to insurability.

“Our theoretical analysis found that climate and cyber risks in particular present major obstacles to insurability. Interestingly, they were also two of the top risks cited by customers when it comes to concerns around the unavailability and unaffordability of insurance. Encouragingly, our survey results also reveal considerable appetite among customers for additional risk services – such as prediction and prevention services – indicating a clear opportunity for insurers to expand their offerings.”

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