The average insurance penetration rate (total insurance premiums as a percentage of GDP) in developed nations is twice as high as the average in emerging, or lower income countries, which account for almost all ($160bn) of the global insurance protection gap. An estimated $163bn of assets are underinsured in the world today, leaving an exposure gap that poses a significant threat to livelihoods and global prosperity, and a big opportunity for new tech lead companies to serve these markets
Countries with the lowest levels of insurance are among the most exposed to climate change risks and least able to fund recovery. The average insurance penetration rate in developed markets is twice as high as in emerging countries. Bangladesh, India, Vietnam, Philippines, Indonesia, Egypt and Nigeria each has an insurance penetration rate of less than 1%. Indonesia has the second highest insurance gap relative to GDP (1.4%) equivalent to $15bn. China is the most underinsured country in absolute dollar values with a gap of $76bn. Underinsurance gap has closed by less than 3% over a period of six years.
