According to analysts, individual insurance sustainability indices show that protection against risks such as natural disasters, mortality and healthcare costs has improved in most regions of the world since the turn of the century. “The insurers can increase global financial stability by closing a record $1.2 trillion comprehensive protection gap for the three key household risks,” Sigma study 5/2019 says.
In the developed APAC countries, the index of comprehensive insurance resistance grew by 4 pp to 59%, while for countries with emerging markets in the region it grew by 7 pp to 31%. “The countries of Asian-Pacific region have the highest rating of insurance stability for mortality risks among all regions of the world of 62%. Taiwan, Hong Kong, South Korea and Japan are among the countries with the highest penetration of life insurance in the world due to accumulative insurance products,” economists say.
In Europe, the cumulative gap in insurance coverage in 2018 amounted to $342 billion, more than double the figure for 2000, with more than half of this gap in developing countries in the region. However, the composite index of resistance to insurance in relative terms has improved in both developed and emerging European economies since 2000.
For the USA and Canada, the composite insurance sustainability index for the region improved by 2 pp to 65%. In Latin America, the total gap in insurance coverage in 2018 is $103 billion, which is about 40% higher than in 2000.
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