Election-focused survey identifies top issues for the insurance industry

The political climate in the U.S. has been far more antagonistic than collaborative for the past eight years, and a new study from the research department of Digital Insurance’s parent company, Arizent, finds that 78% of insurance industry respondents are very dissatisfied with this state of affairs.

When asked how they anticipate voting in this year’s election, 57% indicated they would vote Republican and 52% said they would vote for a Democrat. However, 38% indicated they would vote Libertarian or some other choice, or not even vote at all.

Top policy issues for the next administration
Forty-six percent of the respondents identified the economy as the most urgent policy area for the next administration to address. In 2020, the inflation rate was 1.2%. It rose to 4.7% in 2021 and again to 8% in 2022. Last year, it dropped slightly to 4.1%, but ask anyone trying to feed a family of any size about their take on inflation, and they are experiencing its impact first-hand.

The cost of food has risen 22.4% according to the consumer price index. In simple numbers, if a family spent $750 a week on groceries, their budget would increase by $168 a week or $8,736 a year.

Insurers are also seeing the impact of inflation as the cost of auto insurance has increased 35% since January 2020 according to an ABC News analysis of the consumer price index, with insurance costs rising 20% just over the last year. Multiple factors are affecting the cost of insurance including the increased use of technology and its replacement or repair following an accident, parts availability and a shortage of repair technicians with the necessary experience. Repairs that used to take three to five days are now taking as long as two to three weeks, increasing costs for insurers and consumers alike.

Thirty-nine percent of respondents identified immigration as the second policy issue the next administration should address. The influx of immigrants is creating challenges for communities when it comes to finding affordable housing and providing reasonable services. According to the Pew Research Center, 80% of Americans believe the government is doing a poor job of managing the influx of immigrants, who are often seeking better jobs and financial opportunities.

Insurers identified cybersecurity as the third priority, with 33% of respondents saying it was a vital focus. Interestingly, the insurance respondents rated this risk higher than those in the accounting (29%), banking (30%), municipals (19%), mortgage (14%) and wealth management (26%) sectors of business. Since insurers cover the cyber losses for these other industries, carriers would have a greater understanding of the risks and costs involved with cyberattacks.

Respondents in the survey worked for agents, brokers or MGAs (48%), P&C carriers (19%), multi-line carriers (11%), life insurance carriers (8%), insurtech vendors (5%) and health insurers (4%). Digital Insurance’s next survey will examine the industry’s use of technology in the claims space.

For more information:Tackling inflation, storms and digital expectations with legacy systems and Gen AI

Inflation drives auto and home insurance shopping: TransUnion