Customers feel emerging insurance needs are unmet

Insurance firms are not keeping pace with tailored customer demands in a ever changing environment, according to the World Insurance Report 2019. 

It observes that that the risk landscape for insurance firms are changing by the day and piling pressure on insurance firms to be versatile in adopting to new demands

Among emerging risks are new business models in the market, digital currencies, the debt bubble and regulatory risks.

Others include the rise in healthcare, infectious diseases and microbial drug resistance, while behavioural health concerns and rising chronic disease become a new medical concerns.

The report found out that insurers have been caught napping, as these risks are yet to meet with requisite product pipelines to satisfy customer needs.

Out of the insurers that were surveyed, 50 per cent acknowledged the impact of emerging risks in driving customer demand for new offerings. This is in spite of customers showing a willingness to pay for these new offerings.

“Fewer than 40 per cent of life and health insurers have built an offering of new products to cover emerging risks effectively,” the report says in part, leaving a majority of consumers exposed.

This in effect indicates that insurers have not yet recognised and tapped into opportunities that are emerging due to changing customer preferences, despite their willingness.

Among the most significant threats are technological advances, which commercial customers say are significantly affected by new trends.