Cyber, Climate, and Business Interruption Among Top Risk Concerns

Cyber incidents, climate change, and business interruption are the top risk concerns among key market segments of the insurance industry, according to a recent survey from Munich Reinsurance America Inc. and the Insurance Information Institute (Triple-I). 

The "RiskScan 2024" survey revealed the top risk concerns in five categories—insurance risks, market dynamics, natural disasters, emerging technologies, and property and casualty insurance costs—across five insurance market segments: property-casualty insurers, property-casualty agents and brokers, middle-market business decision makers, small business owners, and consumers. 

Key findings from the "RiskScan 2024" survey included the following. 

• Cyber incidents are a primary concern in all five market segments. 
• Changing climate, demonstrated by the increasing frequency and severity of extreme weather, is a risk driven by consumer concern. 
• Business interruption—a persistent effect of the COVID-19 pandemic, natural catastrophes, and ongoing supply chain issues—is a top concern for the insurance industry and business. 

According to Munich Re and the Triple-I, insurance professionals took a balanced view of insurance risks while consumers focused on a select number of immediate, tangible risks such as climate change, cyber incidents, and natural catastrophes. 

Consumers are concerned about nonpeak perils such as thunderstorms, tornadoes, and floods, the survey found. While businesses and consumers recognize the actual risks, they lack understanding of the importance of adequate insurance coverage, especially for flood and cyber risk, Munich Re and the Triple-I said.