Asia Pacific has large insurance gap to fill as climate risks grow
Reprints
A report by Munich Reinsurance Co. found that Asia Pacific as a region lags with a large insurance gap of 83% compared to the global average of 57% despite the intensity and frequency of costly natural catastrophes, CNBC reported. The Henan floods in China were the costliest natural disaster in Asia in 2021, with an overall loss of $16.5 billion, of which only 10% were insured. Lack of awareness about insurance and low availability of alternative instruments such as insurance-linked securities and catastrophe bonds are among the reasons for low insurance penetration in the region.
