January 20, 2022
Top Risks Facing Insurance for the Next 10 Years
What: Developed by the World Economic Forum’s Global Risks Advisory Board in partnership with several insurance groups, The Global Risk Report 2022 aims to encourage leaders to look outside quarterly reporting cycles to create policies that manage long-term risks. It outlines the top risks we will be facing in the next 10 years by severity:
- Climate action failure
- Extreme weather
- Biodiversity loss
- Social cohesion erosion
- Livelihood crises
- Infectious diseases
- Human environmental damage
- Natural resource crises
- Debt crises
- Geoeconomic confrontation
Why it matters: This list looks very different than it would have two years ago, which is really at the core of insurance. Changing risks will create changing demand and will continue to drive product change for carriers. By the way, one item missed from this list: digital risk through currency and IP assets.
Auto Insurance Rate Report
What: According to a new report, auto rates have increased by 26% since 2011. The national average annual cost for auto insurance is $1,529, up 3% from last year’s reduced rates. This is a fun report, go check it out.
Why it matters: Data aggregations and statistics are powerful tools for telling stories around dispersed data points, and these auto statistics are a great example of how data can tell a compelling story about insurance. With telematics, autonomous driving, gig workers, and the pandemic, auto insurance is impacted by a number of trends that aren’t yet near resolution.
What to Watch for Insurtechs in 2022
What: Insurtechs are driving the digital transformation of the insurance industry, providing better customer experience and enhanced distribution options. According to this report, the four trends we should be watching are:
- Another record year for insurtech funding
- Enhanced data analysis for better servicing and rating
- An expansion of embedded insurance into more industries
- Reinsurers helping to build climate resilience
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