Survey reveals need for insurers to balance consumer expectations with proactive strategies, enhancing competitiveness, and protecting against escalating severe weather impacts
Insurity, a leading provider of cloud-based software for insurance carriers, brokers, and MGAs, shared a comprehensive recap of its 2024 Severe Weather P&C Consumer Pulse Survey offering an in-depth analysis of severe weather trends, their impact on consumers, and the resulting implications for the insurance industry. The survey highlights a year marked by catastrophic hurricanes, tornado outbreaks, and wildfires that caused an estimated $135 billion in insured losses. These events not only underscore the growing financial impact of severe weather but also reveal shifting consumer priorities and opportunities for insurers in 2025.
2024’s extreme weather events exposed vulnerabilities in existing coverage options, prompting many consumers to reassess their policies and coverage preferences. According to the survey, 34% of respondents expressed concerns about their ability to secure coverage for weather-related risks in the near future. Additionally, 36% indicated a willingness to switch providers offering more robust severe weather coverage, while 27% said recent weather events influenced their decision to purchase additional coverage types, such as flood or earthquake insurance.
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Innovation is playing an increasingly critical role in consumer decision-making, with 52% of respondents stating they are more likely to buy a policy from insurers actively investing in technology to enhance claims processes. This trend highlights the growing importance of operational efficiency and seamless customer experiences in earning consumer trust.
While respondents most frequently reported experiencing severe weather events like thunderstorms, wind/hail, and winter storms, their top concerns were focused on tornadoes, flooding, and wind/hail. This distinction underscores the evolving awareness of high-impact risks and is driving demand for insurance solutions designed to address these specific threats.
Looking ahead to 2025, these trends suggest a shift toward greater personalization and technological integration within the insurance industry. With severe weather events becoming more frequent and costly, insurers will likely expand tailored coverage options to address specific regional risks. Investments in predictive analytics and automated claims systems will also take center stage, enabling insurers to better anticipate losses, improve operational efficiency, and provide a seamless customer experience. Simultaneously, consumers’ willingness to switch providers for better coverage will drive competition, incentivizing insurers to innovate and adapt rapidly.
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“As severe weather events continue to grow in frequency and intensity, the responsibility to mitigate risks and build resilience is shared by individuals, businesses, and governments,” said Chris Lafond, Chief Executive Officer at Insurity. “By investing in innovative technologies, creating tailored solutions, and collaborating with policyholders and governments, insurers can meet evolving demands and build resilience in the face of future challenges. Together, these efforts will strengthen preparedness and reduce the long-term impacts of severe weather.”
This survey was conducted in April 2024, and more than 1,000 adult participants were randomly selected across the United States to ensure a representative sample. Respondents were asked a series of 18 questions to gauge their opinions on severe weather and its impact on their P&C insurance coverage.
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Source – insurity.com
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