Munich Re Specialty

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The cost of insurance is rising and the drivers run deeper than consumers realize

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Affordability challenges in P&C insurance aren’t the result of a single factor. They reflect the accumulated impact of economic inflation, climate‑driven catastrophe losses, legal system pressures, and long‑term structural shifts in risk. Our latest RiskScan reveals how these forces compound – and why the gap between consumer perception and industry reality continues to widen.

Affordability is increasingly shaped by the accumulation of risk, not isolated events.

Across the global marketplace, RiskScan respondents identified a tightly connected set of cost drivers:

57%

Economic inflation

56%

Increasing frequency/severity of natural disasters

41%

Increase in legal system abuse/pressures

40%

Lack of climate resilience efforts

32%

Population migration into high-risk areas

Why this matters

The data highlights a fundamental challenge: the economics of risk are becoming more complex, while public understanding remains limited.

The drivers behind the cost of insurance:

Download this section of the report focusing on cost of insurance, or download the full report.

Download this section of the report Download the full report

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Top insurance risks

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Market dynamics

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Natural disasters

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Emerging technologies

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Societal value of insurance