弥合保护差距：可负担性、可访问性和风险预防

Bridging the Protection Gap:Affordability, Access, and With many customers finding P&C coverage tooexpensive and life coverage not relevant, insurers have By Sean O’Neill, Andrew Schwedel, Dan Jones, and Tanja Brettel Bridging the Protection Gap: Affordability, Access, Risk Prevention At a Glance The rise in natural disasters, cyberattacks, and novel transportation demands innovative models, In parallel, AI and unstructured data are revolutionizing the industry, but harnessing the To manage large-scale risks, mitigate disasters, and improve returns, insurers should expand Insurance companies find themselves at an inflection point. The industry weathered the Covid-19pandemic and aftermath fairly well and, over the past couple of years, was bolstered by unsustainabletailwinds, namely rate increases in the property and casualty (P&C) sector and interest-rate–driven As natural disasters and cyber hacks have escalated in frequency and severity beyond previousprojections, the inability of the industry to match price-to-risk profitably may be reaching a breakingpoint. Many homeowners, for instance, have had to forgo property coverage altogether, creating insurance Profitability, meanwhile, has come under pressure for many lines of business including personal auto andproperty. Although many insurance stocks have performed well of late, investors are now skeptical about Bridging the Protection Gap: Affordability, Access, Risk Prevention Protection gaps and how to close them Foremost among the opportunities insurers face are big gaps in protection. Only one-quarter to one-thirdof the damage from natural disasters will be covered by insurance by 2030; for mortality, it would be lessthan half (see Figure 2). The best ways to bridge protection gaps are by addressing affordability in P&C Prevention services also present a significant avenue for insurers to add value. Helping customersproactively mitigate risks—whether through safer driving, better property maintenance, or improvedhealth management—reduces the number of claims and amount of losses. Prevention also allows insurers As carriers seek to attain these goals and make the world safer in a way that works economically, there Bridging the Protection Gap: Affordability, Access, Risk Prevention Estimated global gaps in coverage for damage, 2023 premiumequivalents ($B) 1. Customers’ shifting circumstances and priorities Economic constraints are reshaping consumer behavior, forcing insurers to reconsider their strategies. Inthe US, property premiums in many states have risen at double-digit rates in the past few years, makinginsurance unaffordable for a growing number of homeowners. Yet regulators in some states have In life insurance, demographic changes and savings behavior are reshaping demand. Life expectancycontinues to rise globally, particularly in developing Asia-Pacific countries. Although this is a positivetrend, it also creates longer decumulation periods, requiring higher savings targets or guaranteed income Compounding the issue, traditional life insurance products have slipped in appeal as consumers havegravitated toward other types of investments, especially those offered by the wealth managementindustry. Today, nearly half of US Gen Z and millennial consumers indicate they don’t have any or enough Bridging the Protection Gap: Affordability, Access, Risk Prevention 2. Emerging risks that merit new products, more prevention The increasing frequency of climate-related disasters, cyberattacks, and technological advances intransportation are reshaping risk. From 1994 to 2023, global inflation-adjusted insured losses fromnatural catastrophes grew almost 6% per year, more than double the rate of global GDP, Swiss In automotive markets, the rise of electric vehicles, assisted driving, and autonomous technologies willtransform the dynamics of risk and liability. While fewer human-driven accidents may reduce claimsfrequency, liability could shift from drivers to other entities such as vehicle manufacturers, putting new Turning to cyber risks, the spread of generative AI could expand this market (see Figure 3). But in boththe cyber and property markets, actions by individual carriers will not be sufficient to address the risks.Public-private partnerships will need to expand in order to promote prevention and share risks for Bridging the Protection Gap: Affordability, Access, Risk Prevention Throughout the insurance sector, risk prevention is an increasingly critical component of strategy.For example, GOQii uses behavioral science principles, wearable devices, and real-time feedbackto promote healthier behaviors among policyholders. Several auto insurers are integrating telematics Prevention features extend to real property, where insurers have an opportunity to leverage smarttechnology, such as automated water shutoff systems. Insurers could also recommend changes to building 3. Broadening ways of engaging customers The way consumers