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China is among the most underinsured economies in the world, according to a report released Tuesday by Lloyd’s of London.
The report, “Lloyd’s Global Underinsurance Research,” found that of 11 natural disasters in China from 2004 through 2011, only 1.4% of losses were covered by insurance, leaving an average shortfall of more than $18.91 billion. According to the report, that meant that China has been underinsured by $208 billion.
The study, which was commissioned by Lloyd’s and conducted by the London-based Centre for Economic and Business Research, looked at the development of insurance markets across 42 countries, analyzing data related to insurance premiums, gross domestic product and previous economic losses resulting from natural disasters.
China was not the only country judged to be underinsured: 17 of the countries examined collectively had an annual insurance gap of at least $168 billion when comparing the minimum levels of insurance needed to cover catastrophe-related economic losses with the levels of insurance actually in place.
In addition to China, the ranks of the underinsured contained such other high-growth economies as Brazil, Mexico and Turkey.