by Monica Lis and Marcin Krzykowski
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Monica Lis is a Manager at Milliman | ||
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Marcin Krzykowski is Principal at Milliman |
UNDERSTANDING THE INSURANCE GAP. The insurance gap is defined as the difference between the financial losses incurred from adverse events and the compensation received from insurance. A recent assessment by the Swiss Re Institute estimated the insurance gap (excluding pensions) to be over $1.83 trillion with an overall coverage percentage of 57.9%. Additionally, the Global Federation of Insurance Associations assessed annual global pension gap2 of approximately $1 trillion. Thus, the total unmet insurance needs globally amount to nearly $3 trillion.
Disclaimer:
This article represents the opinion of the authors, and not necessarily the opinion of the AAE.
This article was published in The European Actuary No. 39 – September 2024
