Fast-growing countries face insurance shortfall - Lloyd's
November 27, 2012 11:21 AM EST
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
Seventeen high-growth economies have a collective $168 billion (104.8 billion pounds) deficit in insurance spending relative to the average for well-insured countries in the same income bracket, according to a study published 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.
The cost of natural disasters has increased by $870 billion in real terms since 1980 as economic growth across the world increases the value of buildings and other assets vulnerable to hurricanes or flooding, the report estimates.
Insurers absorbed $107 billion in natural catastrophe claims in 2011, making it the industry's second costliest year for disasters on record.
Lloyd's, which traces its origins back 324 years to a London coffee house where merchants insured ships, is made up of 88 competing syndicates that offer insurance and reinsurance worldwide.
(Reporting by Myles Neligan; Editing by Helen Massy-Beresford)
Most Popular Slideshows
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- PageSix: Beyonce & Jay Z Union is Not About Love, All About Business & the Brand
- Kate Middleton & Prince William Taking a Time Off in August Amidst Miscarriage & Adopting a Child Claims
- Lunch with the Gods: Pope Francis Eats with Vatican Workers in Cafeteria
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Apple iPhone 6 Release Date Update: 6 Most Wanted Feature Upgrades for Next iPhone
- HTC One M8 Windows Phone to Launch for Verizon; Release Date, Price, Five Fresh Features to Anticipate for New Smartphone
- OnePlus One vs. Moto X+1 – Early Specifications, Release Date and Price Faceoff
- Galaxy Note 4 Release Date Ahead of iPhone 6 Sept 2014 Debut; Specced-Up but Remains Plastic-Wrapped – Reports
- LG G2 Android 4.4.4 KitKat Guide: When to Hit Your Region and How to Install
- Update Samsung Galaxy S4 Mini with Android 4.4.2 KitKat
- LG G3 To Debut Moon Violet and Burgundy Red Shades in August; Upcoming LG Devices Roundup