Multi-stakeholder approach key to narrowing nat cat protection gap: G20 South Africa side event

Addressing the widening natural catastrophe insurance protection gap requires a multi-stakeholder approach, including public-private partnerships, investments in risk reduction and resilience, and innovative insurance solutions, according to keynote speakers at a G20 South Africa side event in Durban.

The protection gap poses a global challenge, affecting both advanced and emerging market and developing economies (EMDEs). In 2023, the global insurance protection gap was estimated at 62%, with gaps exceeding 90% in some EMDEs.

The G20 South African Presidency, in collaboration with the International Association of Insurance Supervisors (IAIS) and the World Bank Group (WBG), hosted a side event during the G20 Finance Ministers and Central Bank Governors (FMCBG) meetings in Durban on July 17th, 2025.

The event brought together senior leaders from governments, central banks and supervisors, the private sector, and international organisations to discuss strategies and solutions for narrowing the natural catastrophe insurance protection gap.

Keynote speakers highlighted the economic and financial stability impacts of nat cat events and the risks of inaction, which place financial strain on governments and vulnerable populations. They emphasised that addressing this challenge requires a multi-stakeholder approach.

Speakers also stressed the importance of financial literacy, risk awareness, and regulatory capacity in supporting insurance market development. They highlighted successful initiatives from around the world, including scalable ‘non-traditional’ insurance solutions such as parametric insurance, regional risk pooling, and adaptive financial instruments.

The event featured a panel discussion where panellists shared examples of public-private partnerships, post-disaster policy design, and emerging solutions, including technological innovation and risk transfer. They underscored the need to integrate risk reduction measures with insurance-based solutions and to leverage multi-stakeholder partnerships to build resilience.

Speakers welcomed ongoing efforts by the IAIS, WBG, and other partners to provide practical guidance and tools that support policymakers and supervisors—particularly in EMDEs—in reducing natural catastrophe protection gaps.

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