Moody’s has suggested the global insurance protection gap is widening as economic growth shifts toward underinsured emerging markets, where insurance penetration remains low, and catastrophe losses are increasingly going uninsured.
According to the firm’s report, the protection gap is typically wider in developing economies, where insurance penetration remains low due to limited availability and affordability constraints.
By contrast, it is generally narrower as a share of total losses in advanced economies, where insurance is more widely available, and a larger proportion of households and businesses are able to purchase cover.
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