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Global authorities team up to plug insurance gaps

The UK Government has announced a tie-up with the World Bank and Germany to tackle underinsurance in developing countries.

Minister of State for the Department for International Development Lord Bates told the International Insurance Society (IIS) forum in London last week of the global partnership for climate and disaster risk finance and insurance solutions.

It comes after Prime Minister Theresa May announced the new London-based Centre for Global Disaster Protection.

Insurance Development Forum Chairman Stephen Catlin, speaking at the IIS forum, praised the announcements, warning coverage gaps in much of the world are “a global problem no one organisation, company or individual can solve alone”.

“This is a big step towards activating our common mission as a critical public-private partnership empowered to take on the enormous problem of underinsurance in at-risk developing economies.”

The Centre for Global Disaster Protection will help poor countries strengthen their disaster planning and prepare financially for catastrophes.

The UK will provide £30 million ($49.36 million) for the centre and the World Bank has committed staff to support it.

Germany will contribute €20 million ($32.91 million) as a step towards a linked World Bank multi-donor trust fund for country-specific technical assistance and support, with the aim of helping vulnerable countries tailor disaster risk financing mechanisms. 

The IIS forum had the theme “global resilience and the role of insurance”. It hosted more than 500 insurance executives, regulators, policymakers and academics.

Insurance News is a Media Partner of the IIS Global Forum.