The International Association of Insurance Supervisors (IAIS), alongside the G20 South African Presidency and the World Bank Group (WBG), hosted a G20 Finance Ministers and Central Bank Governors side event focused on closing natural catastrophe (NatCat) insurance protection gaps and strengthening disaster risk mitigation. The initiative links to the G20 Sustainable Finance Working Group’s priority on scaling up finance for adaptation and just transitions, and is supported by an IAIS-WBG input paper described as a practical “guide for action” for jurisdictions. The discussion highlighted the scale of the problem, with a global NatCat insurance protection gap estimated at 62% in 2023 and exceeding 90% in some emerging market and developing economies, driven by factors including low insurance penetration, affordability constraints, and limited access to risk models and data. Speakers emphasised a multi-stakeholder approach spanning public-private partnerships, investments in risk reduction and resilience, and scalable solutions such as parametric insurance and regional risk pooling, alongside efforts to improve financial literacy, risk awareness, and regulatory capacity. The IAIS-WBG input paper for the G20 Sustainable Finance Working Group will be published next week and will be accessible from 21 July 2025 on the G20 Sustainable Finance Working Group website and the IAIS website.
International Association of Insurance Supervisors 2025-07-17
International Association of Insurance Supervisors and World Bank Group to publish G20 guide for action on narrowing natural catastrophe insurance protection gaps
The International Association of Insurance Supervisors, G20 South African Presidency, and World Bank Group hosted a G20 side event on natural catastrophe insurance protection gaps and disaster risk mitigation. The event highlighted a 62% global protection gap in 2023, with higher rates in emerging markets, and advocated for public-private partnerships, parametric insurance, and regional risk pooling. An IAIS-World Bank Group input paper will be published next week to guide jurisdictions on these issues.