There are many reasons why protection gaps exist and in many instances are growing. These include the need for the insurance sector to focus even more carefully on the needs of consumers and think more imaginatively about the risk-financing and risk mitigation products and services it can provide. But the power of governments to help close these protection gaps is also essential. Climate change and the recent experiences of the COVID-19 pandemic have driven a surge in risk awareness. With this has come a corresponding need for and appreciation of better protection systems. Insurance has a critical role to play here in boosting the development of new solutions and systems to help match rising expectations. Accordingly, the Insurance Development Forum and The Geneva Association have collaborated to produce this report, which addresses the role a country’s laws, regulations and broader government policies can have in facilitating or hindering the development of a robust and secure insurance market; that is, an insurance market that can support individuals, companies and the government itself in harnessing the skills and capabilities of the insurance sector to reduce losses and provide financing for the losses that do occur. There is much that can be done to close existing and emerging protections gaps. Urgent action is needed, for the consequences of not acting will have devastating consequences for many. We hope this report will stimulate discussion and importantly, spur necessary action.
