Uninsured losses of $32.94 billion in India due to natural disasters in five years: Swiss Re

Syllabus: GS-III

Subject: Economic development

Topic: Insurance.

Issue: Child limit for welfare schemes.

Context: India faces $32.94B uninsured losses from natural disasters (2018-22), calls for awareness and robust insurance growth.

Synopsis:

Highlights of The Report:

• Uninsured economic losses in India due to natural disasters from 2018-22: $32.94 billion.
• Insured economic losses during the same period: $1.10 billion (93% of exposures uninsured).
• India exposed to earthquakes, floods, tropical cyclones, drought, and wildfires.
• Major cities with high population and asset concentrations are vulnerable to multiple natural hazards.
• Total uninsured economic losses since 2014: $74.83 billion; insured losses: $5.41 billion.
• Challenges in bridging the protection gap include limited awareness and underwriting difficulties.
• Swiss Re forecasts India’s total insurance premiums to grow by 7.1% in real terms (2024-28).
• India is expected to have the fastest-growing insurance sector among G20 countries.
• Non-life premiums are forecast to grow by an annual average of 8.3% during 2024-28.
• Robust growth expected in life business, with premiums up 6.7% (2024-28) driven by rising demand and Insurtech adoption.

Some Fact check:

Swiss Re publishes a range of reports on its website, including financial reports, sustainability reports, and sigma research publications1.It provides data-driven research on the re/insurance industry, enabling risk-focused decision-making and identifying strategic opportunities.

Conclusion: India grapples with significant uninsured losses from natural disasters. Swiss Re urges heightened awareness and anticipates robust insurance sector growth.