A new report shows insurers aren't catering to emerging risks for consumers

This is an excerpt from a story delivered exclusively to Business Insider Intelligence Fintech Briefing subscribers. To receive the full story plus other insights each morning, click here.Emerging risks — including disruptive environmental patterns, technological advances, evolving social and demographic trends, and new medical and health concerns — are affecting global customers' lives in a variety of ways, according to a new report from Capgemini and Efma. Insurers need to acknowledge these changes and adapt their offerings to better meet the new needs of policy holders.Here's what it means: Incumbents aren't meeting new customer needs, resulting in many consumers not being adequately covered by insurers.Consumers don't feel like they have comprehensive coverage for risk in their current insurance policy. Just 3% of consumers think they're appropriately covered against cyberattacks that can put personal data and information at risk, despite 83% of customers having moderate to high exposure to that risk. Additionally, only 16% of insurers think that cyberattack risks are driving demand for new offerings, suggesting that they're missing out on a new opportunity.Insurers among all policy types (including life, health, and personal P&C coverage) have seen an increased pace of product development. However, not all firms are developing a proactive model with products that cover emerging risks. For example, only 36% and 30% of life and health insurers, respectively, have built a robust pipeline for new demands, suggesting that insurers are struggling to continuously meet new customer needs.Additionally, consumers want add-on services from insurers, but they aren't ready to provide them. Almost half of customers want add-on services from their insurers, which would help with retention, but only 45% of insurers that are aware of emerging risk impact are offering value-added services. And while 28% of individual customers say they're willing to share additional data in return for improved risk control and prevention services, only 27% of insurers have the capability to tap real-time data for risk modeling purposes.Lastly, customers are interested in new insurance business models.Over half of the customers surveyed said they have high interest in new insurance models, but just 26% of insurers are currently investing in them. The two most popular new business models for consumers are usage-based insurance and on-demand coverage. Hence, insurers should find new ways, such as using IoT devices, to personalize insurance policies.The bigger picture: Insurtechs have long been focused on personalized offerings and could steal customers away from incumbent insurers.Many insurtechs have already been exploring and implementing new business models for insurance. US-based insurtech Root, for example, uses driving behavior to price car insurance, and a number of other insurtechs have rolled out on-demand insurance for gig economy workers.While the coverage gap in areas of emerging risk gives insurtechs a big opportunity to attract customers away from incumbents, it can also be an opening for agile incumbent insurers: Those that can evolve their products through technology and collaboration with insurtechs can get a competitive edge over other incumbents and come out on top in the crowded insurance industry.Interested in getting the full story？ Here are two ways to get access: 1. Sign up for the Fintech Briefing to get it delivered to your inbox 6x a week. >> Get Started2. Subscribe to a Premium pass to Business Insider Intelligence and gain immediate access to the Fintech Briefing, plus more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now