US EditionProtection gaps expected to worsen across all lines of insurance business through 2030, finds Bain & Company
- On March 31, 2025, Bain & Company released a report titled "Bridging the Protection Gap: Affordability, Access, and Risk Prevention" in Boston, highlighting challenges facing the insurance industry.
- Insurers globally face unsustainable rate-driven growth and challenges in matching price-to-risk profitably, stemming from emerging risks like cyberattacks and natural disasters, unaffordable premiums, and the declining relevance of life insurance, especially among younger generations.
- According to the report, protection gaps are anticipated to worsen across all insurance lines through 2030, with only one-quarter to one-third of natural disaster damage and less than half of mortality risks covered by insurance.
- Sean O'Neill, head of Bain's global Insurance practice, stated that insurance companies are at an inflection point, "bolstered by unsustainable tailwinds" such as recent rate increases in the P&C sector and interest-rate-driven annuity sales in the life sector.
- To address these challenges and leverage opportunities such as the rise of AI and proliferation of data, Bain suggests insurers need to be proactive, form public-private partnerships to share risks like cyber events , and harness data to improve affordability and access, potentially realizing a 10-15% revenue uplift and 30-50% reduction in P&C leakage through AI-driven improvements, though individual carrier actions alone may prove insufficient.
Insights by Ground AI
Does this summary seem wrong?
38 Articles
38 Articles
All
Left
4
Center
9
Right
7
Rutland Herald+35 Reposted by 35 other sources
Protection gaps expected to worsen across all lines of insurance business through 2030, finds Bain & Company
Uncertainty around long-term earnings sustainability, emerging risks, and affordability / access present new challenges for insurersAI-driven industry improvements could allow revenue growth of 10-15%, operating expense savings of up to 30%, and reductions in P&C claims leakage of 30-50%
Coverage Details
Total News Sources38
Leaning Left4Leaning Right7Center9Last UpdatedBias Distribution45% Center
Bias Distribution
- 45% of the sources are Center
45% Center
L 20%
C 45%
R 35%
Factuality
To view factuality data please Upgrade to Premium
Ownership
To view ownership data please Upgrade to Vantage