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- Of the $232bn. of economic losses from natural disasters in 2019, only $71bn. was insured.
- 35% level of catastrophe risk coverage in advanced countries downsizes to only 6% in emerging economies.
- Out of existing disaster risk finance arrangements, the Sovereign Parametric Catastrophe Bonds seem to be the most viable instrument for the ECIS region.
As mentioned by AON in their Weather, Climate & Catastrophe Insight: 2019 Annual Report, last year brought $232 billion of economic losses from natural disasters, whereby only $71 billion was actually insured. It outlined that the world continues to face a fundamental issue of insurance gap, especially in emerging and developing countries, where losses for businesses and governments are only increasing following a decade-long rise in natural catastrophes linked to climate change.