A New Era of Risk Resilience for P&C Insurance

Could insurers have a net loss of policyholders? It’s possible!

Currently, 1 in 7 homes is uninsured and 1 in 7 drivers is uninsured. Climate risks are shifting and increasing, exacerbating affordability and pushing policies out of reach for many individuals and families.

According to Aon’s 2026 Climate and Catastrophe Insight report, severe convective storms dethroned hurricanes as the costliest insured weather peril.[i] It’s not the big-name disasters keeping P&C insurers up at night anymore – it’s something far more frequent and harder to predict.

At the same time, continued legal system abuse, increased risk volatility, and claims costs are adding further pressure to P&C insurers financially, but also pressuring their customers.  Insurers have raised rates to address the increased risk and their financials. Unfortunately, the consequence is an increasing financial strain on some insurance customers and the growing protection gap that it brings with it.  

This is unsustainable for the insurance industry, unsustainable for banks and mortgage companies, and certainly unsustainable for insureds.

Many P&C insurers could relieve pressures by rethinking their operations. Insurance can no longer be just about coverage — it must be about resilience, proactive mitigation, and closing the protection gap in real time with customers.

At the recent Climate Tech Connect Conference, April 8-9, 2026, in Washington D.C., this topic and more were discussed with executives from insurance companies, banks, reinsurers, brokers, government entities and technology companies, to explore how our industry can turn the tide together.

Unpredictability of Events Demand a Rethink of How Resilience is Part of Our Operating Models

Business operating models need flexibility, scalability and the kinds of technology capabilities that are available … now. The challenges of increasing cat events, the cost of claims and the growing protection gap reinforce this view and emphasize why the stakes are high. 

It should be clear … business as usual is no longer viable in a new era of insurance.

Casey Kempton, President of Nationwide Personal Lines, talked in a fireside chat about a shift to predict-and-prevent with more focus on customer communications and relationships that help them manage their risk and insurance costs.  She shared that a shift to a predict-and-prevent way of thinking, helps everyone win – customers and the industry.  It reduces losses and claims, before they occur, which helps lower premiums.  More importantly, it strengthens customer relationships, builds loyalty and helps reduce the protection gap. 

This was echoed by my panel with Bob Pick, EVP & CIO at Tokio Marine North America and Group Deputy CIO at Tokio Marine Group, Chrissy Thom, EVP Global Resiliency and Risk Engineering Services at Chubb, and Mike Gulla, CEO and Co-founder at Adaptive Insurance. 

The panel agreed: risk resilience is now front and center for insurers as they consider new risk management strategies as a crucial component of their underwriting and customer service strategy. While most insurers are focused on improving risk assessment, many more are expanding focus on loss prevention and mitigation, in order to create greater risk resilience and improved risk prevention for customers. 

Even better, risk resilience operations and technologies work to effectively communicate to customers and educate them. Every claim and pre-claim event becomes a teachable moment to help avoid future claims. Insurers need to grasp those moments and change the operating model to in order to grow their risk resilience.

Closing the Protection Gap

Increased insurance costs across nearly all lines of business are unsustainable for customers, forcing them to make difficult decisions such as not buying insurance, switching for a lower cost, increasing deductibles, and more. It is a tipping point; one with consequences if it isn’t addressed. Insurers must respond and fill the growing protection gap if they want to remain viable and relevant with consumers.

The protection gap is estimated to be $9 trillion globally — with P&C accounting for 30% of the gap and L&AH 70%. A recent report by Gallagher warns that many homeowners could be underinsured if their cover has not kept pace with the current cost of repairing or replacing a home. Add this to rising property insurance costs and the protection gap represents a significant financial risk, not only to property-holders, but to insurers and lenders.

In Majesco’s recent customer research, financial risks stand out as the most acute area of under-protection, with large gaps evident for both Gen Z & Millennials and Gen X & Boomers.  More Importantly, customers with the right products feel materially more prepared, underscoring that the challenge is not a lack of solutions, but a lack of alignment, adoption, and perceived value.

These customers are increasingly disillusioned with the “traditional” insurance approach, creating a trust and loyalty fault linebetween their expectations and insurers’ ability to deliver what they want and need, at a price they can afford. They have no loyalty to old models, even from trusted brands. This manifests itself in unpredictable buying behaviors, demand for different products, and often the silent loss of customers at renewal.  

Risk and claims costs will always be a part of insurance. What needs to change is how insurers work with customers to reduce risk, offer the products they want, including parametric products, and educate them on what they can do to manage this financial risk. 

Technology as a Foundational Part of the Solution

There is a growing set of technologies that leverage digital, cloud, data and AI to assess risk and make recommendations, not just for underwriting, but for risk prevention.  I recently did a podcast with executives from Aviva UK where they transformed loss control from traditional site visits to a digital-first model using video inspections, self-surveys, and powerful analytics. Their efforts reshaped customer engagement, unlocked major time and cost savings, supported sustainability goals, and set the stage for new capabilities to deliver greater value for commercial customers.

A tiered approach to risk-based loss control using Majesco Loss Control helped them address multiple business challenges with a new operating model that included traditional loss control surveys, insured self-surveys, video, and advanced data and analytics, including AI, that assessed the information provided via any of these methods.   

Using this approach, insurers can segment their property portfolio to cost effectively determine the best approach for risk assessment, either in person or digitally via self-survey and video. This operational change allows insurers to use loss control reports and risk information to identify what customers can do to proactively reduce or eliminate risk and create risk resiliency. It opens an avenue for regular communication and ultimately enhances customer trust and loyalty.  Even more importantly, by assessing the whole portfolio risk, insurers have the information to negotiate better reinsurance prices. 

Majesco’s customer research shows that AI is emerging as the bridge between concern and action in risk resilience.  Customers — especially younger cohorts — are increasingly open to AI in insurance interactions. Used strategically, AI can personalize risk education, simplify decisions, and guide adoption — transforming insurance from a reactive product into a proactive preparedness partnership.

The Future is in our Grasp

Throughout two days of discussions at Climate Tech Connect, and on my panel, it was clear that the future of the insurance operating model must:

• Rapidly adapt to a new era of risk.
• Focus on proactive risk assessment, prevention, and mitigation. 
• Use a tiered risk-based loss control solution that leverages data, advanced analytics, and AI to help close the gap. 
• Proactively drive customer communication, education, and engagement to follow through on risk mitigation recommendations.
• Offer new products that help close the protection gap like parametric insurance.

Insurers need to change the operating model to drive profitability, close the protection gap, and customer loyalty.  As we heard at Climate Tech Connect, many forward-thinking insurers and others are moving forward to make this happen.  But too many are still in the pay claims mode – putting their customer loyalty and financial future at risk.

We should all realize that the biggest risk for insurers … is not changing and adapting. It’s time to make risk resilience happen!

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[i] “Severe Convective Storms Dethrone Tropical Cyclones as the Costliest Global Peril: High-frequency catastrophes reshape insurance landscape and widen protection gaps, Aon reports,” Risk & Insurance, February 2, 2026