Fast-growing countries face insurance shortfall: Lloyd's
LONDON (REUTERS) - Some of the world's fastest-growing economies do not buy enough insurance to cope with the natural disaster risks they face, imposing a heavy burden on taxpayers, the Lloyd's of London insurance market said on Tuesday.
Seventeen high-growth economies have a collective US$168 billion (S$205 billion) deficit in insurance spending relative to the average for well-insured countries in the same income bracket, according to a study published on Tuesday by Lloyd's and the Centre for Economics and Business Research.
The insurance shortfall means most of the cost of natural catastrophes in the countries affected falls disproportionately on the public purse, holding back recovery.
"The insurance gap has a huge and lasting impact on the ability of businesses, governments and people to recover from the earthquakes, hurricanes, flooding and forest fires that affect us every year," CEBR Chief Executive Douglas McWilliams said.