Continued risk changes force insurance companies to reinvent product offerings and adjust pricing levers as they try to remain competitive and profitable. This changing dynamic also affects how customers feel about insurance products and services.
In this month’s Insurance News Analysis, Abbey Compton and I discuss how insurers and customers adapt to changes in risk. In the USA, for example, a survey shows that satisfaction among individual life insurance customers has increased by 13 points since last year. This may signal that the increased risk associated with covid-19 is driving a long-term and long-awaited change in consumers̵7; sentiment for life insurance.
In the United Kingdom, on the other hand, an analysis of complaints made to the Financial Ombudsman Service indicates that car and motorcycle insurance customers are becoming more dissatisfied with the claim process. We consider the dynamics of that market and how changes in recent years may have affected customers’ expectations and satisfaction.
Changes in risk profiles also drive changes in insurance prices. American property owners are feeling the effects of the insurance price of FEMA’s new method for assessing flood risk. And although we saw some moderation in the price increases for commercial lines below 3rd In the quarter, rising cyber insurance prices are still driving up the overall increase in the US market.
Finally, we discuss one of my favorite news this year. My wife Amy Saldanha was on ABC News in an article about supply chain disruptions and how it affects retailers like her. She even refers to one of my proven jokes about the struggle to cope in uncertain times.
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