Page 7 - WIR 2019 eBook

World Insurance Report 2019 Interactive eBook

Coverage Gap - Customers Feel The vast majority of customers feel unprotected and believe they have

comprehensive coverage for
Exposed to Emerging Risks but

Inadequately Covered

According to the World Insurance Report 2019, customers overwhelmingly indicate that
they feel vulnerable to emerging risks but that their existing insurance coverage is insufficient. A clear
coverage gap exists, with less than a quarter of business customers and less than 15% of individual
customers believing they are comprehensively covered for emerging risks in their existing policies.

Of note, an average 40% of commercial policyholders globally say the macro trends will Emerging risks and demand for new offerings, customers’ view vs insurers’
significantly affect them. In emerging markets, this increases to 51%, most likely because view (%), 2019
emerging markets are less prepared to handle emerging risks. But less than 25% of these
customers globally feel they have comprehensive coverage for the risks.

Individual policyholders are also impacted by macro trends and resulting emerging risks. While
more than 85% of customers say they are increasingly exposed to medical and health risks,
only 1 in 10 has adequate coverage. Meanwhile, 83% of people say they are concerned about
exposure to cyberattacks, but only 3% have comprehensive insurance coverage. Amongst
business customers, 88% are worried about the effects of a financial crisis, with 16% indicating
they have suitable coverage for this risk. Another emerging risk worrying business customers
involves the rising costs of employee healthcare schemes. Nearly 81% of customers have
exposure to this risk, but less than 17% are covered in their insurance policy. Business
customers are also concerned about cyber risks, with 87% reporting moderate-to-high
exposure to this risk but only 18% being comprehensively covered against it.

In fact, many insurers’ product pipelines do not account for emerging risks. Less than 45% of
insurers across business lines indicated that emerging risks are driving product development,
while only approximately 36% of life insurers and 30% of health insurers have initiated
development of products pertaining to emerging risks. Source: Capgemini Financial Services Analysis, 2019; WIR 2019 Executive Interviews, 2019; Capgemini Voice of the Customer
Survey, 2019.

WATCH THE WEBSITE

While customers see a gap in For an insurer to be truly customer centric, it is important to develop core systems
their offerings due to evolving that are actually based on customer view and not focused only on policies.”
risks, insurers’ success may be — Pierluigi Verderosa, General Manager, BNP Paribas Cardif Italia
contingent upon the ability
to understand and align with
policyholders’ requirements Insurance models are rapidly changing in response to the emerging risks. It is important
quickly. for insurers to transform themselves and proactively manage the emerging risk s
cenario, rather than just adapt to it.” — Youngran Kim, Regional CIO, Allianz Asia Pacific

6 7