Insurity Survey Reveals 56% of Consumers Face Higher Insurance Premiums Due to Severe Weather, Escalating Concerns of Severe Weather’s Impact on Property & Casualty Insurance

August 06, 2024 at 10:31 AM EDT

Insurity's survey also shows nearly three quarters of Americans are concerned about how severe weather will impact their insurance coverage over the next 5 years

Insurity, the leading provider of cloud software for insurance carriers, brokers, and MGAs, today announced findings from its 2024 Severe Weather P&C Consumer Pulse survey, detailing consumers’ opinions on severe weather and how it will impact their insurance coverage. The survey uncovered a growing unease among consumers regarding the adequacy of their P&C insurance coverage in the face of escalating severe weather events. The survey underscores the urgent need for the insurance industry to adapt and leverage technology to develop solutions that not only mitigate risk but also enhance customer trust and retention.

According to the findings, 40% of Americans have had to file insurance claims as a result of severe weather conditions, emphasizing the direct impact severe weather has on communities and the P&C insurance landscape. Furthermore, 27% of respondents indicated that recent severe weather incidents have prompted them to purchase additional types of insurance coverage, such as policies for floods or earthquakes. This shift points to a proactive consumer base that is increasingly aware of and responding to the risks posed by severe weather events.

However, despite this proactiveness from consumers looking to acquire more insurance coverage, the survey reveals a concerning trend: 25% of respondents reported difficulties in obtaining necessary coverage due to increasing severe weather risks, and 56% of respondents experiencing an increase in their insurance premiums over the last five years believe it is related to the rise in severe weather events.

The survey also highlights a significant worry among Americans, with 71% expressing concern over how severe weather will affect their insurance coverage in the next five years. This prevailing anxiety emphasizes the need for the insurance sector to reassess risk management strategies and customer communication.

"The results of our latest survey reveal a critical shift in consumer attitudes toward insurance as severe weather events are on the rise,” said Chris Lafond, Chief Executive Officer at Insurity. “As these events become more frequent and intense, it's imperative that the insurance industry reevaluates its products and services to ensure they meet the evolving needs of consumers. The rising concern among policyholders is a clear call to action for P&C insurance organizations to innovate and strengthen their approaches to risk assessment and customer engagement."

This survey was conducted in April 2024, and more than 1,000 adult participants were randomly selected across the United States to ensure a representative sample. Respondents were asked a series of 18 questions to gauge their opinions on severe weather and its impact on their P&C insurance coverage.

To learn more about Insurity’s 2024 Severe Weather P&C Consumer Pulse survey, please reach out to Elizabeth.Hutchinson@insurity.com.

About Insurity

Insurity is a leading provider of cloud-based software for insurance carriers, brokers, and MGAs. Insurity is trusted by 22 of the top 25 P&C carriers and 7 of the top 10 MGAs in the US and has over 400 cloud-based deployments. Through its best-in-class digital platform, unrivaled industry experience, and the industry’s most robust analytics offerings, Insurity is uniquely positioned to deliver exceptional value, empowering customers to focus on their core businesses, optimize their operations, and provide superior policyholder experiences. Insurity is a portfolio company of GI Partners and TA Associates. For more information, visit www.insurity.com.