What does the cost of living crisis mean for insurance?

Areefih_Ghaith

We have spoken a lot about how fraud will increase claims leakage, but when speaking with a CTO yesterday of an insurer, they gave me some insight I hadn't considered. Where before some people may not have decided to claim for something, the hassle may not have been worth it- he said insurers will now see much more of those smaller claims, and also larger claims coming in with additional items that may have been left off before.

I wonder what other small changes we will see, as given this is a problem on mass- it will soon amount to percentage on COR.

Shyam_Bhatt

This is definitely really interesting - as with insurers there is always pressure on paying claims as the vast majority of customers are inherently honest and good. By having an influx of claims, there will be a reliance on technology to spot the opportunistic fraud in addition to the organised fraud which is always a concern.

Alex_Johnson

Interesting in a recent survey insurers see a recession as the biggest threat to the industry. Ahead of inflation and far ahead of other external factors such as climate, new entrants and changing regulation.

Previews to the results here: https://www.dig-in.com/list/insurance-predictions-research-preview?utm_source=house-list&utm_medium=email&utm_campaign=di-subs-nb-22-forum-2023_predictions_preview&utm_content=email_1_postlaunch&bt_ee=giwPtY9DedoXog6YsYC4hUNQi1I1g5zUV%2BqsdkfLrtH6A42A31Pxk%2FndwIIcsrJ8&bt_ts=1671118328000