Insurance: a protection gap of 424 billion
The proportion of insured losses stands at 27.3% and the accumulation of risk assets increases the coverage deficit, according to Swiss Re.
The global insurance coverage gap for natural disasters reached $424 billion in 2025, according to Swiss Re Institute. This represents a 7% increase from the previous year, despite a slight rise in the global resilience index to 27.3%. The gap is growing due to the accumulation of riskier assets, driven by economic growth and urbanization, which has led to more infrastructure, homes, and productive activities being exposed to extreme natural events.
In developed countries, the insurance penetration rate varies, with Germany having high coverage for homes against fires and storms, while in emerging markets, the proportion of insured losses remains low, around 8-9% in Latin America and 5% in Asia.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
