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How Leading Global Risks Impact Agents and Brokers

Understanding the leading global risks is important for any insurance agent or broker. These risks impact coverage, policies, availability, and costs across the industry. Being able to explain how the global market affects a policyholder’s rates and access to insurance can help an agent retain customers and earn new ones.

Leading Global Risks of 2024

These are the leading global risks trending in 2024 and ways agents and brokers can help their policyholders manage them:


Extreme weather-related events and catastrophes pose significant risks.

Changing weather patterns have caused more extremes in weather across the globe. More people see effects from events like wildfires, tornadoes, hurricanes, hailstorms, floods, and freezes than ever before. These challenging weather events put lives and property at risk.

Weather events and catastrophes can cause higher premiums and less capacity for coverage in certain geographic areas. Carriers may decide to stop writing in some regions, as we have experienced in Florida and California. Homeowners may struggle to find affordable coverage — or any coverage at all — in those impacted areas.

Agents can work with their policyholders to educate them about these issues. They can also help policyholders with risk mitigation measures to help reduce their risk. Finally, agents can work to find sufficient coverage at the best rate so policyholders can afford to maintain their insurance coverage.


Cyber incidents remain a top global concern.

Some experts rank cyber incidents as their top risk concern for 2024. This includes threats like data breaches, ransomware attacks, and attacks on critical infrastructure and physical assets. The proliferation of generative AI in various industries, including risk and insurance, gives rise to even more cyber exposures for businesses using the technology.

By remaining aware of cyber risks and learning more about the growing exposures, agents can help their policyholders find the right coverage for their risks. Be sure to talk with your customers at renewal and throughout the year to learn more about how their business may have changed to ensure the insurance products they own meet their needs. Use resources, including industry-specific ones like the guidelines offered by the NAIC, to stay educated.


Changing macroeconomic factors impact the insurance industry.

Since the pandemic, the world seems to be changing more quickly. Supply chain issues, labor shortages, inflation, the housing bubble, and the cost-of-living crisis are some of these macroeconomic issues that continue to change quickly. And as these factors vary so does the insurance needed to manage them.

Agents can remain on top of these changing macroeconomic factors to relate their impacts to customers. Policyholders may need to purchase additional coverage if the value of their home has increased or may need to wait longer for repairs to their home or auto after a loss. Reviewing deductibles, additional living expenses, rental car coverage, and other limits with policyholders helps set their expectations should they file a claim.


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