Lloyd’s Report Reveals Serious Gap Between Disaster Losses and Covered Losses
A new report from Lloyd’s finds that the “the world has been battered by natural catastrophes in recent years, revealing a serious gap between the economic cost of natural catastrophes and the levels of insured risk.” The research, which analyzed data from 42 countries to determine the difference between the minimum levels of insurance cover needed and those actually in place, “reveals a $168 billion annual shortfall between levels of insurance and actual economic losses caused by natural disasters across the world,” according to Lloyd’s. Seventeen of the 42 nations studied are significantly at risk. Lloyd’s said it is imploring governments, insurance companies, and businesses to do more to bridge this divide.
Gap Between Disaster Costs and Insurance Coverage (Insurance Journal 11/28/12)