Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • October 2015
10

North America has biggest gap between insured and 'insurable' losses

Open-access content Thursday 1st October 2015 — updated 5.50pm, Wednesday 29th April 2020

North America has the biggest gap between catastrophe losses covered by insurance firms and those eligible for coverage, according to AIR Worldwide.

2

Its report, which analyses losses from disasters worldwide, found a $29.6bn gap between insured and "insurable" losses in this region. 

The average amount of annual insured losses globally had been estimated at $74.4bn, while insurable losses - exposures eligible for insurance coverage regardless of whether they are actually insured - was worth $135.9bn, nearly twice as high as insured losses. The average amount of annual economic losses worldwide was $307.4bn.

Asia was identified as the region with the second biggest gap, with $25.9bn worth of uninsured losses eligible for coverage, followed by Europe and Latin America, with each having a $3bn gap. Oceania had the smallest gap of $100m.

Using AIR's exceedance probability curve, Bill Churney, CEO at AIR Worldwide, said the gap between covered and eligible exposures became "evident" and represented opportunities for the insurance industry to offer "essential protection to vulnerable home and business owners, in addition to avenues of potential business growth".

He said the gap was "very pronounced" in Asia while in the US a "significant portion" of earthquake and flood risk was not insured. 

The report also identified severe storm as the biggest contribution to payouts, accounting for 31% of global insured losses, followed by tropical cyclone, which contributed to 30% of insured coverage. 

However, earthquake represented the biggest contribution to potentially insurable losses (33%), followed by tropical cyclone (22%).

This article appeared in our October 2015 issue of The Actuary.
Click here to view this issue
Filed in:
10
Topics:
Environment

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2022 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ