A new report by Global Federation of Insurance Associations (GFIA) has identified and quantified the most significant - and growing - annual global protection gaps: $1tn for pensions; $900bn for cyber; $800bn for health and $100bn for natural catastrophes.
The 115-page report identifies the factors driving these protection gaps both on the demand and the supply side, including why certain risks can be very difficult to insure completely. The report also provides an overview of the wide range of potential levers that can be used by a broad variety of stakeholders to address the gaps.
GFIA president Susan Neely said, “Insurers around the world play a vital role in helping to protect people and businesses from the risks they face, and to recover when those risks materialize.”
The report highlights that a range of factors have led to huge and growing global protection gaps that could have profound impacts on people’s lives and livelihoods.
Ms. Neely said, “Insurers can, and are, taking steps to address these gaps. These include using technology to assess risks and claims, and to make insurance more accessible for people and businesses. However, closing the gaps will also require action from policymakers to create environments in which risks can be managed and mitigated. These actions will help keep risks insurable and insurance protection affordable.”
The report uses several case studies to demonstrate the private and/or public policy actions that have been taken to reduce protection gaps. It also includes GFIA’s own recommendations to policymakers of the best levers to use to reduce risk and increase protection.
The report makes clear the steps that are needed to reduce the protection gaps and to help people. The report includes GFIA’s own recommendations to policymakers of the best levers to use to reduce risk and increase protection.
Source: asiainsurancereview.com