The global natural catastrophe protection gap widened again in 2023, rising 5.2% to US $385 billion in premium equivalent terms, but at the same time Swiss Re reports that there are signs of more protection being available, which over time should see more losses covered by insurance and reinsurance.
Swiss Re’s Institute sigma research team said that the firm’s measure for the global natural catastrophe insurance protection gap widened due to economic growth and inflation last year.
Positively though, “Global protection available increased by 10.1% yoy in 2023, greater than the 6.3% yoy rise in protection needed, resulting in improved resilience, an encouraging underlying trend in risk protection,” the reinsurance company explained.
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