Insurity, a leading provider of cloud software for insurance carriers, brokers, and managing general agents (MGAs), has released findings from its 2024 Severe Weather P&C Consumer Pulse survey, shedding light on consumer attitudes towards severe weather insurance coverage.
The survey highlights an increasing demand for advanced insurance solutions as severe weather events become more frequent and severe.
Conducted in April 2024 with over 1,000 randomly selected adult participants across the United States, the report revealed that 36% of consumers would consider switching insurance providers for better severe weather coverage. Despite nearly half of Americans expressing confidence in their current insurance plans to handle severe weather’s financial impacts, there is a strong inclination towards providers offering more comprehensive policies and investing in technology to simplify the claims process.
The urgency of the demand is underscored by the fact that the United States has experienced 15 severe weather events, each causing losses exceeding $1 billion, as of July 9, 2024, according to the NOAA National Centers for Environmental Information. The statistic highlights the significant financial risks posed by the increasing frequency of severe weather, and the need for more robust insurance coverage.
Key findings from the survey include:
- Claims Experience: 40% of Americans have filed an insurance claim due to severe weather conditions. Of these claimants, 74% reported satisfaction with their experience, indicating that many insurance providers are effectively supporting their customers during challenging times.
- Willingness to Switch Providers: Despite high satisfaction levels, 36% of respondents expressed readiness to switch to an insurance provider offering better coverage for severe weather-related events, reflecting a proactive consumer base seeking optimal protection.
- Premium Increases: 56% of respondents have faced higher insurance premiums in the last five years, with many attributing these increases to the rise in severe weather events.
- Coverage Concerns: 71% of Americans are concerned about how severe weather will impact their insurance coverage over the next five years. This anxiety points to the need for the insurance industry to enhance risk management strategies and customer communication.
- Additional Coverage: 27% of respondents have purchased additional types of insurance coverage, such as flood or earthquake policies, due to recent severe weather incidents, demonstrating increased consumer awareness and response to weather-related risks.
- Difficulty in Obtaining Coverage: 25% of respondents reported challenges in securing necessary coverage due to increasing severe weather risks, highlighting a significant barrier in the current insurance market.
Chris Lafond, Chief Executive Officer at Insurity, commented on the survey results “The results of Insurity’s 2024 Severe Weather P&C Consumer Pulse survey are encouraging in terms of customer satisfaction. However, these results also emphasise the necessity for ongoing investment in insurance organisations’ offerings.”
He added that the findings reveal a critical shift in consumer attitudes toward insurance as severe weather events become more frequent and intense. “It is imperative that the insurance industry reevaluates its products and services to meet the evolving needs of consumers. The rising concern among policyholders is a clear call to action for P&C insurance organisations to innovate and strengthen their approaches to risk assessment and customer engagement.”
Source: Insurity
