Leaders of the United Nations, the World Bank Group and the insurance industry today announced the formation of the Insurance Development Forum (IDF) which occurred at a high level meeting in Washington, DC, last week. The IDF aims to: 1) incorporate insurance industry risk measurement know-how into existing governmental disaster risk reduction and resilience frameworks; and 2) to build out a more sustainable and resilient global insurance market in a world facing growing natural disaster and climate risk. This announcement followed a keynote address by the UN Secretary General Ban Ki-Moon at a planning conference last week with many CEOs of the industry which emphasized the critical role that the insurance industry can play in building natural disaster resilience and helping meet the UN’s Sustainable Development Goals.
Today in the developing world, more than 90% of economic costs of natural disasters are uninsured; this is known as the Protection Gap. The IDF Mission is to better understand and utilize risk measurement tools that will help governments apply that knowledge at multiple levels in order to better deploy governmental resources targeting resilience to protect people and their property.