What does the cost of living crisis mean for insurance?
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.
Comments
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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.
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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.
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