Insurance Protection Gap

The insurance protection gap refers to the disparity between the amount of coverage people have and the amount they need to adequately protect themselves against risks. This gap often arises from insufficient insurance policies, underestimations of coverage needs, or a lack of awareness about the extent of potential risks. It affects various types of insurance, including life, health, property, and liability. For example, individuals may lack adequate life insurance to support their families in the event of untimely death or insufficient health insurance to cover high medical costs.

This gap can be influenced by factors such as rising costs, changing economic conditions, and evolving risk landscapes. Addressing the protection gap involves assessing individual or organizational risks, understanding coverage needs, and adjusting insurance policies accordingly. Insurers and technology experts are working to bridge this gap by developing innovative solutions and tools to better match coverage with actual needs and improve overall financial security.