Strategic Intelligence: Inflation in Insurance 2024

Strategic Intelligence: Inflation in Insurance 2024

Summary

This report provides in-depth analysis of the impact of inflation on the insurance industry in 2024, exploring key trends, challenges, and strategic opportunities for insurers. It begins with an overview of macroeconomic conditions, including inflation and GDP trends, and their influence on insurance pricing and affordability. It then examines consumer behavior, highlighting the importance of pricing in insurance selection and the growing demand for flexible payment options such as installment plans. The report also delves into the role of technology in mitigating inflationary pressures, including the adoption of telematics, activity trackers, and smart home devices to help policyholders reduce premiums. In addition, it explores how artificial intelligence is transforming the industry by automating claims processing, enhancing underwriting, and improving overall efficiency.

Inflation and GDP trends continue to shape a volatile yet stabilizing economic environment. Although inflation peaked in 2022, it remains a significant challenge for businesses and consumers, affecting pricing and affordability across industries, including insurance. Insurers must adapt to these macroeconomic pressures to maintain competitiveness. Price remains the most critical factor for consumers when selecting an insurance provider, and with inflation expected to impact businesses over the next year, insurers must strike a balance between competitive pricing and profitability to retain and attract customers.

Scope

• 65.4% of global consumers prefer to pay for insurance in installments as per GlobalData’s 2024 Emerging Trends Insurance Consumer Survey. This indicates strong demand for flexible payment options to improve affordability.
• Price remains the most important factor for consumers when choosing an insurance provider. With inflation expected to impact businesses over the next 12 months, insurers must balance competitive pricing with profitability to attract and retain customers.
• Artificial intelligence is playing a transformative role in insurance, helping to automate claims processing, personalize policies, and reduce operational costs-leading to a more seamless customer experience.

• Understand the impact of Inflation on insurance.
• Discover how inflation is influencing consumer purchasing decisions, with a focus on growing demand for competitive pricing, flexible payment options, and installment-based insurance plans.
• Learn how insurers are leveraging telematics, activity trackers, and smart home devices to help policyholders actively manage risks and lower premiums.
• Identify key strategies to navigate economic uncertainty, maintain profitability, and improve customer satisfaction amid rising inflationary pressures.
• Stay ahead of industry trends and gain a competitive edge by adopting innovative solutions that cater to evolving consumer expectations.