Insurance Executives Acknowledge Ethical Duty to Address $1.8 Trillion Protection Gap
Insurance Executives Acknowledge Ethical Duty to Address $1.8 Trillion Protection Gap
The global insurance landscape is undergoing a transformative shift as industry leaders emphasize the urgent need to bridge a staggering protection gap, estimated at about $1.8 trillion. A recent survey conducted by Economist Impact, along with SAS, surveyed over 500 insurance executives from 17 different nations. The results indicate a strong consensus: 78% believe that closing this protection gap is an ethical obligation for the sector.
The Protection Gap Defined
The protection gap represents the difference between insured and uninsured losses. This gap stretches across various areas, including life, health, natural disasters, and agricultural insurance. With the rising costs associated with climate change and catastrophic events, the pressure on insurers to address these gaps has never been greater.
According to data, the economic losses from catastrophic events reached $368 billion in 2024 alone, with 60% of these losses remaining uninsured. This is alarming, especially for vulnerable communities in high-risk areas who struggle to afford insurance or find suitable coverage at all.
Ethical Obligation vs. Business Opportunity
The sentiment among industry leaders is palpable. Three-quarters of the executives surveyed view closing the protection gap not only as an ethical responsibility but also as a significant business opportunity. Addressing the needs of underserved populations in health and life insurance will become increasingly critical, particularly as the impact of climate change intensifies.
“Insurance has always revolved around building resilience,
Topics Financial Services & Investing）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.