Natural Disasters Exposes Huge Insurance Protection Gap
Around two-thirds of the economic losses resulting from natural disasters last year were not covered by insurance, and the protection gap continues to grow due to the world's changing climate.
That is according to a report published yesterday by insurance firm Aon, which highlights how 416 natural catastrophe events resulted in economic losses of $268bn (£196bn) last year – 8% above the average annual losses for this century.
Of this total, private sector and government-sponsored insurance programs covered $97bn, leaving a protection gap of 64%, or $171bn.
Aon said that costs continue to rise due to a changing climate, more people moving into hazard-prone areas, and increasing global wealth, underlining the need for greater access to affordable insurance products.