PriyaPatel
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TLDR:
As the insurance industry moves towards a more digital world, the debate over how to address underinsurance in the market continues. With 77% of brokers believing there is a problem with underinsurance in the high-net-worth market, the key factors identified include lack of awareness of rebuild/repair costs, out-of-date valuations, and inflation. The question remains whether human contact or new technology is the better solution to combat underinsurance.
Key Points:
- 77% of brokers believe there is a problem with underinsurance in the high-net-worth market
- Factors contributing to underinsurance include lack of awareness of rebuild/repair costs, out-of-date valuations, and inflation
- Debate on whether human contact or new technology is more effective in addressing underinsurance
Article:
As we move into an even more digital world, with some insurance quotes and policies being completed strictly online, which would better help address underinsurance: re-introducing human contact or using even more new tech? Rosie Simms weighs up the arguments.
In June 2023, Ecclesiastical revealed that 77% of brokers believe there is a problem with underinsurance in the high-net-worth market – up five percentage points from 2022. The insurer noted the top three reasons why brokers think HNW clients are underinsured: lack of awareness of the huge rise of rebuild/repair costs, out-of-date valuations, and lack of awareness of the value of buildings/contents. The top five were rounded out by inflation and clients not wanting to pay higher premiums.
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