Public Sentiment is a Signal for Insurers

So sad to report that new nationwide research from a digital consultancy company Customertimes shows that the cost of living crisis has forced Americans to take unprecedented actions, with 1 in 5 admitting they’ve considered committing insurance fraud.

Customertimes, using acute insurtech expertise, surveyed 2,000 adults to see how the economy downturn, tech adoption and insurance providers’ policies affect the insurance industry.

Sorry findings:

1 in 5 respondents told us they had at least considered committing insurance fraud, with half of those (1 in 10 overall) saying that they had gone through with their plans

30% of respondents said knew someone who’d at least considered committing insurance fraud, with half of those doing the crime

Nearly half of those committing insurance fraud did so out of desperation or financial gain. 35% were influenced by their peers, while 25% were simply unaware of the consequences.

Blaming insurance policies and loopholes, many justify insurance fraud:

45% believe that loopholes in policies made insurance fraud easier

1 in 4 think that unfair insurance policies justify breaking the rules

2 in 3 say that companies that commit insurance fraud are a bigger problem than individuals

Few are happy with how insurance companies are handling the issue of fraud:

Just 1 in 6 fully trust insurance companies to detect and prevent fraud

65% don’t think that insurance companies fairly compensate fraud victims

Nearly 60% say that communicating with insurance providers is too complicated, and 80% would trust insurance companies more if they weren’t so bureaucratic

1 in 3 are unable to define what even counts as insurance fraud, and 57% think that insurance providers need to do a better job at educating consumers

Many trust technologies to improve fraud detection — and happy to collaborate:

71% believe that technology like AI and data analytics will help prevent insurance fraud

66% would be willing to share more personal data if it could help prevent fraud and potentially lower premiums

The industry is actively promoting the ethical and even criminal aspects of honor in the insurance process. It is our best hope, since schools and universities are not doing the right job in teaching values.

M & A activity picks up and outlook is steady

The significant uptick in M&A activity this year is reflected in Deloitte’s 2024 Insurance M&A Outlook, which details the implications of new domestic and global tax regulations, explaining that Bermuda has enacted the Corporate Income Tax Act in response to Pillar Two that will be begin in January 2025.

Groups contemplating M&A activity involving a Bermuda presence will face greater complexity as these tax matters are expected to have an impact on a number of deal workstreams, including due diligence efforts, structuring, deal funding, valuation efforts, contractual representations and warranties, and post-integration compliance obligations for both purchaser and vendor groups.

 Deloitte’s 2024 Insurance M&A Outlook also outlines expectations for the 2024 M&A landscape:

Ongoing inflow of private equity money

A pickup in external investment

Aggregators getting back in the game

Opportunities for favorable acquisitions

More pension risk transfers

Greater potential for bigger plays

Be advised…start your engines…maybe?

 SA