This report's comprehensive analysis of the role and nature of trust in insurance, with a focus on the retail segment, offers important insights into how to narrow the protection gap—the difference between needed and available protection—through concerted multistakeholder efforts.

Contrary to general belief, protection gaps are not limited to developed and emerging countries but are also common in advanced economies. A customer survey of The Geneva Association in seven mature economies revealed that people widely understand the fundamental notion of insurance and its vital role in the economy and society. However, people have deep misperceptions about the insurance industry and its products. Addressing this disconnect will be vital to encouraging a wider adoption of insurance in mature economies.

People in emerging markets are finding it difficult to fund their healthcare needs. Health protection gaps in emerging markets require flexible and creative responses from the private health insurance industry that address the needs of vulnerable people who have so far been denied suitable and affordable access to healthcare.

Also of interest:

The platform economy has the potential to deliver substantial economic and societal benefits. At the same time, the rise of online platforms creates new challenges for consumer protection and competition policy. In order to ensure a thriving and competitive marketplace, policymakers should consider the role of data as a production factor and data itself as a potential barrier to market entry when assessing market power and potential anti-competitive conduct.

As the effects of climate change become more severe, catastrophe risk modelling is more relevant than ever. Few sectors of the economy play a role as intense in catastrophe recovery as insurance; therefore, the industry should strive to continually strengthen the predictive power of its catastrophe modelling capabilities.

A view on key implications for the economy and society

Technology and new data sources are changing our economy and society fundamentally, and promise to transform the insurance industry as well. Digitalization is changing the role of insurance, from pure risk protection towards predicting and preventing risks. The risks insurers cover and the ways they underwrite, distribute, and manage claims are also changing.

Prerequisites for the development of a sustainable cyber risk insurance market

Although cyber risk premiums have expanded sizeably in recent years and loss ratios compared favourably relative to other product lines, sustainable growth of the cyber insurance market should not be taken for granted. A report issued by The Geneva Association identifies three prerequisites that must be met to ensure sustainability.

An insurance solution to people outliving their retirement savings

Government-supported social retirement plans (Pillar I) are under extreme financial pressure due increased life expectancies and low fertility rates. Individuals are compelled to provide for themselves a suitable retirement through occupational pensions (Pillar II) and personal savings (Pillar III).

Cyber insurance is the fastest growing line of business in the insurance industry. A combined assault of daily front-page news items about cyberattacks, increasing government regulation, and insurance industry awareness is raising the profile of cyber risk. As more regulations are adopted, the corporate sector is looking to insurance to offer solutions that can effectively deal with this emerging risk.

This report offers an updated quantification of insurance protection gaps in the areas of natural catastrophe, cyber, healthcare and pension risk. The paper discusses root causes and potential remedies, taking into account commonalities and differences across various lines of business and country income groups.