Congratulations to the Insurance Development Forum (IDF) on its tenth anniversary—a significant milestone in advancing resilience through innovative insurance solutions. As IAIS Secretary General, I deeply value our decade-long partnership, which has amplified the voice of insurance in global policy discussions. I also commend the leadership of Chair Michel Liès, Secretary General Ekhosuehi Iyahen and the IDF operating committee leads for fostering impactful cross-sector dialogue and collaboration.
From your perspective, what has been the most significant shift in how supervisors and policymakers view the role of insurance in closing the protection gap?
Among supervisors, the IAIS’ 2023 Call to Action on addressing NatCat protection gaps marked a critical commitment – recognising that addressing protection gaps is an imperative for all supervisors, regardless of supervisory mandate, given the clear financial soundness, consumer protection and financial stability risks that the can arise if there is not a concerted, multi-stakeholder approach to taking action to address these gaps. Among policymakers, there is a growing recognition that insurance needs to be a key element of comprehensive disaster risk financing strategies, especially in the face of strained government budgets. Importantly, the value of insurance is now viewed not only in terms of risk sharing, but also, by promoting risk-based approaches, in terms of incentivising risk reduction as a critical element of strengthening societal resilience.
Significant progress has been made, including the IAIS-World Bank paper on addressing NatCat protection gaps presented at the G20 this year, with the IDF contributing valuable industry insights as a discussant. Engagement through G20 channels has elevated insurance protection gaps on the global policy agenda, fostering deeper understanding and paving the way for coordinated, impactful solutions. This highlights the importance of public-private collaboration in tackling these pressing challenges.
What lessons have you drawn from IAIS’ engagement with the IDF on how supervisors and the insurance sector can work together most effectively to deliver protection where it is needed most?
The IDF has exemplified the power of constructive dialogue and partnership between the public and private sectors, showcasing the importance of multi-stakeholder collaboration in addressing significant global challenges. This partnership operates on multiple levels, demonstrating how collective efforts can drive meaningful impact.
One compelling example is the involvement of Costa Rica’s supervisor, SUGESE, in adopting the IDF’s risk modelling tools through the Global Risk Modelling Alliance. This initiative has enabled the development of more granular and sophisticated risk modelling in Costa Rica, providing a tangible demonstration of how such collaborations can deliver real-world benefits.
Looking ahead, there is a significant opportunity to continue nurturing these efforts and fostering capacity building across jurisdictions. By expanding and deepening multi-stakeholder dialogue, we can ensure that supervisors are well-equipped to address complex challenges, paving the way for innovative insurance solutions that strengthen resilience and deliver protection where it is needed most.
What do you see as the biggest supervisory priorities to ensure that insurance can continue to play its role in building financial resilience and addressing climate and disaster risks at scale?
Looking ahead, supervisors must remain steadfast in their efforts to close protection gaps, address climate and disaster risks, and ensure that insurance markets are both accessible and inclusive. These priorities lie at the core of the IAIS’ Strategic Plan for 2025–2029, which underscores the importance of practical guidance, robust implementation support and focused advocacy to achieve meaningful progress.
The implementation of IAIS standards will be critical in creating risk-based and proportionate regulation and supervision that enables innovation, while simultaneously safeguarding financial stability. Supervisors are looking to support the adoption of innovative tools, such as parametric insurance, which offer rapid and transparent payouts in the wake of disasters, providing much-needed financial relief to vulnerable communities. By embracing such innovations, supervisors can help unlock the full potential of insurance as a powerful instrument for resilience.
Supervisors also have an important role to play in promoting the foundational steps that enable innovation, such as building capacity to assess exposure to NatCat events and protection gaps, including addressing data and model challenges, and improving financial literacy and risk awareness. Lastly, supervisors can play an important advisory role to governments in the design and implementation of effective public-private insurance programmes aimed at addressing these gaps.
As the IDF marks its 10th anniversary, what reflections would you share on the journey so far, and what message would you offer to stakeholders about the next decade of building inclusive insurance markets?
Over the past decade, the work of the IDF has been instrumental in bringing about a shift in how policymakers view the role of insurance in building societal resilience and contributing to sustainable growth and job creation. Addressing insurance protection gaps has been elevated as a critical topic in the global policy agenda. The challenge now is to shift from policy consensus to even greater action. Fortunately, IDF initiatives already provide blueprints for how effective public-private partnerships can be in driving resilience and inclusion. The IAIS stands ready to help scale-up these efforts to achieve even greater impact.
