4.5 billion people globally are without insurance, says Munich Re Foundation Vice Chair

Vice Chair of the Munich Re Foundation, Dirk Reinhard, speaking during a press conference on the sidelines of the 19th International Conference on Inclusive Insurance (ICII) in Ghana, on October 24, 2023, noted that a staggering 4.5 billion individuals across the globe remain deprived of affordable risk management tools, including insurance.

Mr Reinhard drew attention to the profound impact of the COVID-19 pandemic, quoting World Bank figures that estimate approximately 100 million people have been thrust back into poverty due to the pandemic’s ramifications. Furthermore, he shone a spotlight on the plight of low-income communities who bear the brunt of natural disasters, such as earthquakes and floods, without adequate protection or resources for recovery through insurance.

The Munich Re Foundation’s Vice Chair pointed to several factors contributing to this insurance gap, including the absence of suitable insurance products, enabling legal frameworks, comprehensive data, and a dearth of market knowledge. He argued passionately that addressing these issues is imperative, particularly in the face of escalating climate change risks, which are further exacerbating the challenges faced by emerging economies.

Mr Reinhard emphatically stated that sustainable economic development goals are intrinsically tied to effective risk management at all levels. He lamented that some segments of the insurance industry have yet to fully grasp the pivotal role they play in this global imperative. He called for a heightened sense of responsibility within the insurance sector to develop products that cater to the needs of individuals across the world.

Notably, Mr Reinhard commended the collective efforts of regulatory bodies and the insurance industry in Ghana, emphasizing their crucial role in this endeavor. He called for a collaborative approach, urging the involvement of national financial inclusion and disaster risk finance entities. Moreover, he welcomed the creation of a standing committee on insurance by Ghana’s Ministry of Finance, in conjunction with the National Insurance Commission (NIC), signaling the commitment to effect change.

In a resounding call to action, Mr. Reinhard urged all stakeholders, including insurance experts, development specialists, government representatives, regulators, and donors, to work in unison. He maintained that only through collaboration and a comprehensive understanding of the market’s challenges can solutions be formulated to bridge the insurance gap and foster economic development.

Mr. Reinhard’s remarks resonated deeply with the mission of the ICII, which serves as a nonprofit platform for global stakeholders to convene, exchange knowledge, share experiences, and engage in constructive dialogues on solutions. The overarching objective is to craft insurance products that can effectively address the global insurance gap while raising awareness of the need for insurance coverage.

Source: Norvanreports