Cyber, climate change and business interruption top key insurance risks
Cyber, climate change and business interruption (BI) have become key risks for various segments of the insurance market. A new survey conducted by Munich Re America and the Insurance Information Institute (Triple-I) called RiskScan 2024 highlights the main risk concerns in five categories:
insurance risks
market dynamics
natural disasters
emerging technologies
property insurance costs
The report provides a unique overview of risk concerns of key segments both within and outside the insurance industry. Representatives of five key segments participated in the study: property insurers, insurance agents and brokers, insurance consumers – mid-sized company executives, small business owners and large corporate clients of insurers. Forinsurer analyzed the report and selected the most important ones. We previously analyzed the 10 risks facing the European insurance sector.
The results showed that insurance professionals assess risks more broadly, while consumers focus on issues that are more relevant to them, such as climate change, cyber threats and natural disasters.
Among natural hazards, consumers also noted non-core risks such as thunderstorms, tornadoes and floods. At the same time, despite awareness of these threats, businesses and consumers often underestimate the importance of adequate insurance coverage, especially for floods and cyber risks. Among new technologies, artificial intelligence was singled out as a priority by all groups of respondents.
Carrie Hamm, Executive Vice President and Head of Cyber Insurance, Client Solutions and Business Development at Munich Re US, noted that understanding customers’ concerns about risks is invaluable for insurance and reinsurance market participants.
The trends and insights we gained from RiskScan will help the insurance industry better design, assess and deliver products that meet real customer needs
Kerry Hamm, Munich Re US
“The current knowledge gap around insurance risks demonstrates the urgent need for education with consumers and businesses, particularly around floods, cyber risks and judicial abuse. Raising awareness will be a key factor in working together to manage and mitigate future risks,” said Sean Keveligan, CEO of Triple-I.
RiskScan Results and Key Risks
Respondents were asked to rate their top concerns about key insurance risks. The survey results offer insight into the overall market’s perception of risk. Understanding these risks, which span multiple segments, helps drive more effective dialogue and innovative solutions that benefit society.
A New Look at Risk in the Insurance Industry
Cyber incidents, climate change and business interruption were identified as top risks for all audiences. Consumers, businesses and the insurance industry face significant cyber threats. From customer data breaches to digitally connected homes, the world of cyber risk is constantly changing and it is no surprise that these incidents have been ranked among the top three concerns across all segments.
Climate change, including the increase in the frequency and intensity of extreme weather events, also ranked high among the risks, particularly as reflected in policyholder responses.
While business interruption was not a key concern for insurance consumers, businesses are facing losses due to extreme weather, cyberattacks and supply chain issues that can disrupt their operations.
Key Insurance Risks for 2025
When it comes to natural disasters, all segments expressed concern about common threats such as thunderstorms, tornadoes and floods, citing their increasing frequency and intensity. At the same time, insurance professionals are also considering less frequent but potentially devastating risks such as earthquakes.
The common concerns across all groups reflect major events that have recently dominated the news. Inflation was identified as the top market driver for all respondents.
Top Natural Disasters
Consumers focused on tangible risks such as climate change and cyber threats, while insurance professionals had a more balanced view, considering both immediate risks and emerging threats such as emerging technologies and per- and polyfluoroalkyl substances (PFAS).
There is a gap between risk perception and action to address them
There is a gap between risk perception and action to address them. For example, consumers are less concerned about flooding than insurance professionals.
This may indicate a lack of awareness among consumers about the risks, as traditional property insurance policies typically do not cover this risk. A similar gap exists in the area of cyber risks.
Although identified as important by all audiences, a significant portion of cyber risks remains uninsured in both the commercial and personal segments.
Abuse of the legal system was also a factor in the increase in the cost of property insurance, which insurance professionals identified as significant, while consumers and businesses did not see it as a key issue.
Differences in the perception of insurance risks by market participants
Differences in the perception of insurance risks by market participants
Flooding. Consumers are less concerned about flooding than insurance professionals. This indicates a possible lack of awareness that traditional home insurance policies do not typically cover this risk.
Cyber risks. Although identified as an important risk, a significant portion of cyber risks in both the commercial and personal segments remains uninsured.
Abuse of the legal system. Insurance professionals identified this as a significant factor in the increase in the cost of P&C insurance, while consumers and businesses did not see it as a key issue.
Survey Methodology
The RiskScan survey was initiated by Munich Re US in collaboration with Triple-I. In the summer of 2024, Munich Re US and Triple-I engaged independent research firm RTi to conduct an online survey of 1,300 respondents in the US representing five market segments within the insurance value chain.
The survey covered different categories based on gender, age, geographic location, household income, business income and company size. Participants were also segmented by homeownership status, business ownership, role in the organization and their involvement in the property and casualty (P&C) insurance sector.
Respondents were asked about their top concerns related to insurance risks, natural catastrophes, emerging technologies, P&C insurance costs and market dynamics.