Effective insurance coverage for emerging countries

Insured and economic losses caused by natural catastrophes around the world are on the increase. Due to rapidly rising living standards, excessive urbanisation and the consequences of climate change, some emerging countries are particularly affected. Current studies have concluded that insurance protection makes an important contribution to speeding up economic recovery after natural catastrophes.


Michael Menhart, Head of Economic Research at Munich Re, and Professor Florian Englmaier, Ludwig Maximilian University Munich, explain the economic correlations between natural catastrophes and emerging countries and their repercussions. They outline how insurance protection provides efficient and effective support for local populations, fuelling economic recovery in impacted countries.

Emerging countries are especially exposed and impacted by natural catastrophes. In terms of economic output, losses from natural catastrophes in emerging countries are greater than in industrialised countries. Current studies have shown that emerging countries with a low insurance density may suffer long-term setbacks to prosperity.