8th November 2023

IAIS outlines actions for insurance supervisors in addressing natural catastrophe protection gaps

-Insurance helps build resilience to natural disasters. But, as the frequency and intensity of natural catastrophe (NatCat) events are expected to grow due to climate change, this may challenge the insurability and affordability of insurance coverage–leading to increasing protection gaps.
-Addressing NatCat protection gaps is a complex societal challenge requiring a multi-stakeholder approach, including governments, the insurance industry and consumers. Alongside these parties, insurance supervisors can also play an essential role.
-The IAIS highlights that insurance supervisors have a strong basis for supervisory action to help narrow NatCat protection gaps in support of their various supervisory mandates.
-The report outlines five significant areas where supervisors can help address NatCat protection gaps, underpinned by examples of action already underway by IAIS members. It also provides a basis for further engagement amongst insurance supervisors and stakeholders and outlines concrete follow-on actions.

IAIS Trends)178 articles)