PriyaPatel
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TLDR:
- P&C insurers are facing difficulties in profitability in 2024 due to rising expenses and big claims payouts.
- To regain profitability, insurers are moving towards innovative technologies beyond digitization.
In 2024, US property and casualty (P&C) insurers are experiencing a challenging market environment with rising expenses, big claims payouts, and price-shopping policyholders. To address these issues and renew growth, insurers are shifting towards a more proactive business model and exploring innovative technologies in auto, homeowners’, and renters’ insurance.
The key trend affecting P&C insurers’ profitability is the need for a proactive approach to business models. Insurers that prioritize profitability over customer retention stand a better chance of returning to profitability. The penetration in auto insurance has reached a ceiling in the US, prompting insurers to adopt innovative technologies like AI underwriting and claim settling technology to retain customers.
Rising auto premiums are driving drivers to pare back on coverage or switch carriers, pushing insurers towards innovative technologies. Property insurers are also facing challenges with climate risk, leading them to shift from a “detect and repair” approach to a “predict and prevent” strategy. Additionally, raising awareness about renters’ insurance can provide insurers with future business opportunities.
It is crucial for P&C insurance marketers to focus on understanding Gen Z’s preferences to stay competitive in the market. By prioritizing profitability and embracing innovative technologies, insurers can navigate the challenging market environment and regain profitability in 2024.
For more information about this report, visit Research and Markets.
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