Continued changes in risk are forcing insurers to re-invent product offerings and adjust pricing levers as they seek to remain competitive and profitable. These shifting dynamics are also impacting how customers feel about insurance products and services.
In this month’s Insurance News Analysis, Abbey Compton and I discuss ways insurers and customers are adjusting to changes in risk. In the U.S., for example, one survey shows that satisfaction among individual life insurance customers increased 13 points since last year. This may signal that the elevated risk associated with COVID-19 is driving a longer-term, and long overdue, shift in consumer sentiment on life insurance.
In the U.K., by contrast, an analysis of complaints made to the Financial Ombudsman Service suggests car and motorcycle insurance customers are growing more dissatisfied with the claims process. We consider the dynamics in that market and how changes in recent years may have impacted customer expectation and satisfaction.
Changes in risk profiles are also driving changes in insurance prices. U.S. property owners are feeling the insurance price impact of FEMA’s new flood risk assessment methodology. And, although we saw some moderation in commercial lines price increases in the 3rd quarter, increasing cyber insurance prices are still driving overall increases in the U.S. market.
Finally, we discuss one of my favorite news stories this year. My wife Amy Saldanha was featured on ABC News in a story on supply chain disruption, and how it’s impacting retailers like her. She even references one of my tried-and-true jokes about the struggles of coping in uncertain times.
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