When Insurance Disappears, Economies Follow. The G7 Has A Unique Opportunity To Act

A commentary tied to France’s G7 process warns that the gap between disaster losses and insured coverage is widening, creating rising climate and financial risks.

It urges coordinated G7 action to improve affordability, share risk more evenly between public and private actors, and expand tools like parametric insurance and catastrophe bonds.

The piece says vulnerable and developing economies need more scalable risk-transfer solutions to avoid turning uninsured disaster losses into public debt and fiscal stress.

With extreme weather becoming more frequent, insurance reform is framed as a key issue for financial stability and global climate policy.