The global insurance industry calls for joint action to close worldwide protection gaps

A new report published by the Global Federation of Insurance Associations (GFIA) highlights the urgent need for coordinated action to address growing gaps in insurance protection worldwide.

The report entitled 'Pathways to protection: from challenges to opportunities in insurability'' shows that despite significant industry innovation, investment and effort, many individuals, businesses and communities remain without adequate coverage. These "protection gaps" leave societies exposed to rising risks, including natural catastrophes, cyber threats, demographic change and economic volatility.

GFIA analyses these challenges through the "4 A's" framework: Awareness, Accessibility, Affordability, and Availability. GFIA stresses that while insurers are adapting and innovating, they cannot close protection gaps alone. The report argues that creating the right policy and regulatory environment enables insurers to price risks accurately, distribute products efficiently, and help support resilience. It showcases examples of industry-initiatives which have been successful in helping to reduce protection gaps.

GFIA's President, Stephen Frank, said: "Insurance is fundamental for economic resilience and societal well-being across the globe. This requires government, civil society and industry to come together and collaborate. We must tackle the protection gap by working hand-in-hand to create the right conditions that enable innovation and ensure coverage remains affordable and available."

The report makes several concrete recommendations and calls for:

• Awareness: stronger financial literacy and public education campaigns.
• Accessibility: fit-for-purpose and proportionate regulation, and digital tools to expand reach.
• Affordability: open reinsurance markets, risk-based pricing, and targeted incentives.
• Availability: investment in resilient infrastructure and effective public-private partnerships.

Tackling global protection gaps demands cooperation between insurers, governments, regulators, and civil society. By enabling agility, embracing new technologies, and promoting smart policy frameworks, insurance can continue to fulfil its supporting role in safeguarding financial security and promoting resilience worldwide.