Speakers at the 2024 Global Asia Insurance Partnership (GAIP) Summit explored the current landscape of protection gaps, while discussing global efforts to address these challenges and evaluating the effectiveness of these initiatives.
Specifically, emphasis was placed on the importance of understanding protection gaps, the necessity of a holistic approach and the crucial role of multi-stakeholder collaboration in bridging these gaps.
IDF secretary general Ekhosuehi Iyahen opened the first day of the summit by emphasising the aim to optimise and expand the use of insurance and related risk management capabilities as essential or driving resilience and providing protection for people, communities and businesses vulnerable to natural disasters and related economic shocks.
“The theme of addressing protection gaps in Asia is crucial. While the industry has made strides, these gaps continue to widen—a trend backed by statistics. This should concern all stakeholders, from policymakers to private sector actors and civil society. Awareness alone isn't enough; we need urgency in addressing these gaps. It’s ultimately about protecting people and communities who face growing exposure to various shocks without the financial means to cope,” Ms Iyahen said.
Moving on, panellists discussed the agendas of protection gaps, global efforts and some of the newer emerging protection gaps.
IAIS secretary general Jonathan Dixon said, “Asia ranks among the regions with the lowest levels of insurance coverage. While insurance isn’t the solution to everything, it should certainly play a larger role here and in other parts of the world. To address this challenge, we need to bring together regulators, industry leaders, policymakers and academics. This is the essence of the tripartite partnership under GAIP, where we regularly collaborate to ensure research is applied in practice and that regulators are actively involved in shaping solutions, as they will be key players in addressing these gaps."
Swiss Re chief risk officer life and health Karen Tan said, “Swiss Re publishes the Resilience Index and our latest report highlights a $1.8tn insurance protection gap—about 40%. By increasing insurance coverage in key areas like crop, Nat CAT, health and mortality, we can help individuals and families better prepare for stress events. A significant focus is on Nat CATs."
“Emerging Asia accounts for 70% of the protection gaps in the developing world. However, I am confident that with the collective efforts of everyone here, along with global standard setters and regulators, we can achieve much better outcomes,” Ms Tan said.
Monetary Authority of Singapore assistant managing director and chief sustainability officer Gillian Tan focused on the newer protection gaps such as investment in climate infrastructure and carbon markets.
“The climate financing gap in Asia is enormous. We need about $1.1tn annually, yet we only secure around $300bn, leaving an $800bn gap each year. Despite the scale of this challenge, Asia’s need to transition is both absolute and critical. With 60% of the world’s population and over half of global emissions, Asia’s role in the transition is vital. If Asia doesn’t transition, no one does,” Ms Gillian said.
The Global Asia Insurance Partnership Summit runs from 14-15 October 2024 in Singapore, with Asia Insurance Review as the official media partner.