By Ted Gotsch
Policy Content and Publications Manager
Many Americans are currently focused on stretching their incomes to cover increasingly higher costs in their daily lives, so it’s understandable if they are not thinking much about the importance of insurance.
But as we prepare to observe National Insurance Awareness Day on June 28, it is important to recognize that health, property, life, and other forms of insurance not only protect consumers but bring increased economic certainty and peace of mind by helping to cover potentially catastrophic costs through the combination of risks and costs across an insured population, also known as “risk pooling.”
Insurance is a foundational element of a sound financial strategy. Appropriate insurance policies selected with the help of an informed advisor or agent can help reduce the financial impact of accidents, natural disasters, illnesses, or other claims. It can help individuals rebuild after loss, allow families to maintain financial security during difficult times, and enable businesses to continue operating even in the face of certain setbacks. Without adequate coverage, a single event—like a car accident, house fire, or medical emergency—can have devastating financial consequences aggravated by rising costs.
The Academy, in its effort to fulfill its mission to serve the public and the U.S. actuarial profession, has highlighted the importance of insurance in a variety of ways in 2026 as affordability challenges persist. Just last month, for example, https://actuary.org/publication-issue/academy-brings-actuarial-perspective-to-texas-house-committee-hearing-on-healthcare/Susan Pantely, the Health Practice Council’s co-vice chairperson, testified before a Texas legislative committee about the role of insurance in meeting the challenges of healthcare affordability in the Lone Star State.
Meanwhile, the Casualty Practice Council’s (CPC) Homeowners Insurance Task Force authored an issue brief and presented its findings at the CAS Spring Meeting in May. In both, the risks facing consumers who underinsure their homes were highlighted, noting they may not be made whole when filing a claim and thus would not be able to afford repairs or, in the worst case, rebuilding.
Similarly, the CPC’s Auto Insurance Committee produced an issue brief and presented at the CAS Spring Meeting about some of the challenges facing the sector currently due to tariffs and higher inflation. Underinsurance due to coverage changes selected for affordability reasons is among them, a trend that can expand the exposure of motorists to the mounting costs of unforeseen injury, repairs, or replacement. The CPC identified some approaches for regulators to consider to address the impact of rising costs on motorists and the automobile insurance market.
A Contingencies article earlier this year detailed the slowing of the cyber insurance market in this country, noting that while it remains profitable, overall cyber insurance written premiums have actually declined. That happened despite the continuing existence of bad actors seeking to wreak havoc, especially in the commercial space. “Because cyber insurance remains a discretionary purchase, risk management budgets are often constrained, particularly among organizations that have not yet experienced a major event,” the article notes.
It’s reasonable that consumers and businesses are watching their budgets these days. But insurance remains an important necessity. On this National Insurance Awareness Day, we should all take time to review our insurance policies to make sure they keep pace with our evolving personal and business needs. Whether protecting your family’s future or safeguarding your company’s assets, taking the time to reassess your insurance policies to ensure they provide the right protections can lead to greater financial security.
To learn more about the Academy’s perspectives on issues across the insurance landscape, visit the Policy Forum.