Asia's protection-gap problem

Asia has emerged as the region with the largest discrepancy between aggregate average annual loss (AAL) and insured assets, according to AIR Worldwide’s Global Modeled Catastrophe Losses report. AAL represents the average expected losses over a long period of time, not what would be expected in any given year. According to the risk modeller, insured AAL in Asia - which is based on AIR’s suite of models - is $10.4bn, compared with an insurable AAL of $47.5bn. This equates to only roughly 9% of economic losses being insured on the continent, the lowest of all regions covered by AIR.

Blurred image of Reactions article content
Blurred image of Reactions article related content