While the global natural catastrophe insurance protection gap is estimated to have risen to US $424 billion in 2025, new research from Swiss Re’s Institute suggests that insurance coverage is growing at a rate broadly in line with the increasing catastrophe exposure.
Swiss Re said that both insurance and adaptation efforts are critical to narrowing the global natural catastrophe protection gap and importantly the reinsurance company highlights that adaptation projects have a median projected benefit-cost ratio (BCR) of 1.86, a benefit of almost twice every US dollar invested.
Economic growth and the increasing value of assets exposed to natural catastrophe risks is the main driver of the insurance protection gap.
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