Kathmandu. In recent years, the global insurance industry has been facing increasing pressure on affordability.
A new report by CB Insights and Crawford & Co. shows this. According to the report, rising claim costs, inflation and more complex losses are driving up premiums. This is making coverage difficult for both consumers and businesses.
Without stronger cost controls and increased efficiency, these pressures could persist and further erode affordability in key business sectors, the report warned. “Adopting technology is considered a key solution. Insurers using automation, advanced analytics and digital delivery can better manage expenses, improve underwriting accuracy, and streamline claims processes,” the report said. ’
CB Insights and Crawford also pointed to innovation areas such as remote sensing, parametric insurance and experiment-based pricing. This can enable insurance companies to offer more flexible and affordable products while maintaining profitability.
The report concludes that insurance companies need to act now to address the cost gap by using technology to control costs and redesign their products. “This is before it becomes unaffordable for many policyholders,” the report said.
