As extreme weather events become more frequent and severe, closing the widening climate protection gap has never been more urgent. According to Elizabeth Henderson, Global Head of Climate Advisory at broker Aon, financial tools such as parametric insurance, catastrophe bonds, and public-private partnerships (P3) are critical towards building resilience and closing the gap.
In a World Economic Forum article, Henderson highlighted that climate disasters in 2024 caused $368 billion in losses worldwide, with $223 billion uninsured, exposing a significant global protection gap.
“From catastrophic flooding in Spain, to the second worst wildfire season on record in Canada and record-breaking heatwaves across South America and the Caribbean, the world has experienced a new level of climate disruption in recent years. Climate risks are intensifying and compounding every year, creating shocks to governments, trade systems, workforce health and more,” Henderson explained.
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