Worsening Disasters and the Global Insurance Protection Gap

As made clear in the wake of the devastating LA Fires, more frequent and intense disasters, coupled with development into hazard zones and climbing asset values, are widening the gap between those who can afford insurance in high-risk areas and those who can’t- often leaving society’s least wealthy unable to rebuild and recover when disaster strikes. Only about a third of the USD 280 billion in total economic losses last year from natural catastrophes were covered by insurance, leaving business and communities without a safety net, and eroding the ability of economies to bounce back from fires, floods and cyclones. The US and Australia share striking similarities across hazard risk, economies and cultures and are facing into this shared challenge together.

It’s why the Insurance Council of Australia, the American Australian Association and the American Property Casualty Insurance Association are hosting a boardroom discussion in New York City, to bring together insurers, government representatives and regulators to discuss solutions. The discussion will examine the drivers of the insurance protection gap and explore options to accelerate the proven solutions that have a track-record of strengthening national and economic resilience in the face of worsening extreme weather.