Protection Gap

Insurance protection gaps, from natural disasters to
  healthcare expenses and cyber incidents, jeopardise
    the resilience of modern societies and exacerbate poverty
      in developing countries. The Geneva Association intends
        to develop and promote multi-stakeholder solutions
          by shedding light on the underlying causes of
            underinsurance.

Protection Gap

Insurance protection gaps, from natural disasters to
  healthcare expenses and cyber incidents, jeopardise
    the resilience of modern societies and exacerbate
      poverty in developing countries. The Geneva
        Association intends to develop and promote
          multi-stakeholder solutions by shedding light
            on the underlying causes of underinsurance.

Protection Gap

Insurance protection gaps, from natural disasters to healthcare expenses and cyber incidents, jeopardise the resilience of modern societies and exacerbate poverty in developing countries. The Geneva Association intends to develop and promote multi-stakeholder solutions by shedding light on the underlying causes of underinsurance.

RESEARCH REPORT

Healthcare in Emerging Markets: Exploring the Protection Gaps

This research paper offers a comprehensive overview of the current sources of healthcare funding in emerging markets. A key finding is that the share of healthcare expenditure has risen globally over the last two decades from about 8% to almost 10% of aggregate gross domestic product (GDP). In emerging markets, however, the global trend of higher healthcare expenditure has not led to increased penetration of private health insurance, which remains insignificant at a 2% share of total healthcare expenditure.

Based on the notion of financially stressful out-of-pocket spending and using World Health Organization data for the year 2015, The Geneva Association estimates the annualised health protection gap for all emerging markets at around USD 310 billion, or 1% of these countries’ combined GDP. This estimate assumes that 100%, 75% and 50% of out-of-pocket spending in low-income, lower-middle income and upper-middle income countries, respectively, can be considered financially stressful and, therefore, is part of the health protection gap.

There is a broad consensus that private health insurance is preferable to the out-of-pocket spending that can be financially catastrophic for households. With the right regulatory framework, private health insurance can have an important and beneficial effect on the sustainability of health schemes to which individuals, governments and employers contribute. From a public policy point of view, private health insurance can help governments in emerging countries to mitigate their population’s vulnerability to catastrophic out-of-pocket spending.


Read the report

VIEW INFOGRAPHIC

VIEW INFOGRAPHIC

Health Protection Gaps in Emerging Markets: the role of private health insurance: Kai-Uwe Schanz

ONGOING STUDY

Why People Do Not Buy Insurance

In 2018 The Geneva Association’s Global Ageing and Protection Gap research streams joined forces to delve deeper into the reasons behind underinsurance (see the Global Ageing section for a description of the research project). As part of this effort, The Geneva Association commissioned a global customer survey that aimed to identify the main obstacles to insurance purchases.

The survey’s findings, which will be published in the second quarter of 2019, revealed a remarkable discrepancy between customer knowledge and perception of the industry. Respondents understand well the basic function and potential utility of insurance, but less than a quarter of respondents reported having a positive opinion or a good knowledge of the industry.

According to the survey, to overcome this disconnect it is essential for the insurance industry to build trust, primarily in insurers’ willingness and ability to pay, and communicate more clearly and transparently.

CONFERENCES

The Geneva Association’s Director Protection Gaps, Kai-Uwe Schanz, contributed his expertise at the following conferences and events:

Insurance Summit on Industrial Revolution 4.0 Seoul, South Korea, October 2018

Despite technological advancements that should increase access to insurance products, a protection gap is prevalent in many major markets. The insurance industry has an opportunity to leverage technology and behavioural economics to narrow the protection gap in mature and emerging markets.

Participants in the Insurance Summit on Industrial Revolution 4.0


Antoine Baronnet, Deputy Secretary General, giving the international address