Parametric insurance could bridge 1 800 billion USD protection gap

Generali and the United Nations Development Programme (UNDP) have conducted a collaborative study highlighting the potential of parametric insurance for filling a financial gap estimated at 1 800 billion USD. This protection gap is mainly linked to the impact of climate change and the interconnected nature of crises.

Using seven detailed case studies, the report concretely illustrates how this type of insurance can mitigate economic shocks, particularly in the most vulnerable regions.

It also suggests a set of practical tools designed to facilitate the implementation of these solutions by organizations and governments, with the primary aim of building the resilience of risk-prone communities.