The G20 South African Presidency, working with the International Association of Insurance Supervisors (IAIS) and the World Bank Group (WBG), published a post-event summary highlighting widening natural catastrophe (NatCat) insurance protection gaps and calling for coordinated action, particularly for emerging markets and developing economies (EMDEs). Discussions at a side event during the G20 Finance Ministers and Central Bank Governors meeting in Durban focused on the financial stability implications of uninsured disaster losses and the need to strengthen resilience through public and private sector solutions. Participants noted that over 50% of global natural disaster losses remain uninsured and that protection gaps are often larger in EMDEs due to low insurance penetration, affordability constraints, limited fiscal capacity, and weaker access to risk models and data. The summary underscored the role of insurance in supporting faster recovery and incentivising risk reduction, while stressing that the private sector cannot close gaps alone; priorities included scaling public-private partnerships, shifting towards pre-arranged disaster finance (citing evidence that USD 1 invested can save up to USD 15 in recovery costs), fostering innovation such as parametric insurance and regional risk pools, and ensuring insurance supervisors are included in broader disaster risk financing strategies. As reflected in the July G20 Communiqué from the Finance Ministers and Central Bank Governors meeting, the IAIS and the World Bank will continue work to provide practical guidance and tools for policymakers and supervisors, building on a recently published IAIS-WBG input paper with recommendations to narrow protection gaps, especially in EMDEs.
G20 2025-08-15
G20 South African Presidency promotes multi-stakeholder action to narrow natural catastrophe insurance protection gaps
The G20 South African Presidency, with the International Association of Insurance Supervisors and the World Bank Group, published a summary on widening natural catastrophe insurance protection gaps in emerging markets. The report urges coordinated action to address uninsured disaster losses, emphasizing public-private partnerships, pre-arranged disaster finance, and innovative solutions like parametric insurance. The IAIS and World Bank will continue providing guidance to narrow these gaps, as noted in the July G20 Communiqué.