Knowledge Hub - Reports & Publications

IDF REPORT IDENTIFIES HOW BARRIERS TO GLOBAL RISK UNDERSTANDING CAN BE OVERCOME

The protection gap remains a persistent issue and continues to grow. Recent statistics indicate that overall losses from natural disasters in 2019 came to US$ 150bn, but only US$ 52bn of these losses were insured 2 . For the IDF, our mandate has become increasingly urgent and 2019 strengthened our focus on concrete action through collaboration.

The report illustrates the importance of climate risk analysis as an essential instrument of comprehensive climate risk management on the basis of results of a San Salvador case study.

The Insurance Development Forum (IDF) has called for action to facilitate the use of technology to close the protection gap – defined as the difference between the amount of insurance coverage that is economically beneficial and what is actually purchased – worldwide, particularly regarding sovereign and sub-sovereign risks.

Infrastructure is an essential ingredient for the success of a modern economy
that positively impacts output, productivity and long-term growth.

Climate change jeopardizes socioeconomic stability, and sets back development efforts. The increasing frequency and severity of climate-change-driven disasters threaten lives and livelihoods, food security, water supply, property security, and economic prosperity across the globe.

Strategy Paper September 2018: Unlocking the potential of collaboration in natural catastrophe risk analytics to close the protection gap.