Global Non-Life Insurance Industry Adjustes Rapidly to Higher Interest Rate
The global non-life insurance industry is adjusting rapidly to the new higher interest rate era ushered in by the most intense monetary policy tightening since the 1980s
Protection gap
Protection Gap refers to the disparity between the amount of insurance coverage individuals and businesses have and the actual financial protection they need. This gap occurs when people do not have enough insurance to cover potential losses or risks. It can arise due to various factors, including inadequate policy limits, insufficient understanding of coverage needs, or changes in risk exposure that are not reflected in existing policies.
The protection gap can lead to significant financial strain when unexpected events occur. For instance, if a person has a limited amount of life insurance but their family’s financial needs are higher than the coverage provided, the shortfall can result in economic hardship. Similarly, businesses might face severe consequences if their insurance does not cover all potential liabilities or losses.
Addressing the insurance protection gap involves evaluating current coverage, understanding personal or business risks, and adjusting insurance policies to meet actual needs. This often requires working with insurance professionals to identify gaps and find suitable coverage options. By closing the protection gap, individuals and businesses can better safeguard themselves against unforeseen financial impacts.
Insurance Resilience Index & Global Protection Gap
Insurance resilience indices measure how insurance contributes to maintaining financial stability. Global protection gap measured at $1.8 trln
War, Disruptions of Supply Chains & Climate Change Impacts on the Re/Insurance Industry
Geopolitics, war, disruptions of supply chains and climate change can have a great impact on the re/insurance industry in China and emerging Asia
A Key Barriers on Emerging Insurance Markets Overview
Insurance is critical to economic development as it enables economic activity by protecting lives, livelihoods and assets against insurable risks
Global Insurance resilience recovered. Swiss Re Index
Global insurance resilience recovered, primarily due to strong improvement in health resilience, which natural catastrophe
Since the war began, global reinsurers have bundled risks from Ukraine, Russia, and Belarus, excluding them from reinsurance contracts. This has reduced available capital and hindered economic stability
4 years after the pandemic began in 2020, many countries still report higher death rates. For Life and Health (L&H) insurance, this poses a challenge
The positive reinsurance market outlook comes from de-risking as much as pricing with changes in terms and conditions, rising attachment points and tightening of wording
ILS market remains a significant capital source for reinsurers in 2024. Alternative capital estemated at $110 bn, with the catastrophe bond market growing to $45 bn