As the Insurance Development Forum marks its 10-year anniversary, we reflect with Stephen Catlin, Chairman of Convex, Steering Committee Member and former Chair of the IDF, on the motivation behind the Forum’s creation and the progress made since its inception.
A founding figure of the IDF, Stephen shares why narrowing the global protection gap was an urgent priority already a decade ago – and why it remains just as relevant today. Drawing on examples from both developed and developing markets, he reflects on how improved data, risk modelling and public–private partnership have reshaped the role of insurance in managing systemic risk, strengthening resilience and supporting long-term economic stability.
Origins and motivation
When we established the Insurance Development Forum (IDF) ten years ago, the motivation was clear but urgent – the global protection gap was far too large in developing countries. While the challenge is acute in developing economies, it is by no means confined to them. Even in advanced markets, levels of underinsurance can be startling. For example, fewer than 10% of properties in California are insured against earthquake risk because of the increasing cost of premiums. In contrast, Christchurch in New Zealand achieved nearly 80% coverage, even when losses ultimately amounted to approximately 20% of GDP or some $50bn. These realities underline the need for the IDF.
Early days and key turning points
From the inception of the IDF, the ambition was not to eliminate the protection gap. Instead, its aim was to narrow it, raise awareness and highlight the value of insurance as a mechanism for disaster resilience and long-term economic stability. A crucial early turning point was recognising that this could not be achieved by the insurance industry alone. We needed to attract the attention of leaders from the major underwriters and brokers and global financial institutions as well as governments. Bringing together the UN, World Bank and private sector leaders around the same table was difficult, but has been one of the Forum’s most important achievements.
Bridging the protection gap
Over the past decade, the IDF has helped advance thinking on risk and resilience. Climate change is now widely accepted as is the fact that natural catastrophe losses are increasing, not only from hurricanes, but from wildfires, flooding and other secondary perils across regions – including Southern Europe, Australia and Canada.
Market evolution and resilience
The market has in turn had to adapt at a rapid rate. Historical data stretching back 50 years is often less relevant than insights from the past five. Despite this, the reinsurance market has shown considerable resilience, remaining well capitalised and stable through a period of heightened loss activity.
Leadership perspective from Convex
From a leadership perspective at Convex, I have seen how improved data, better modelling and greater awareness have transformed decision making. Insurance and reinsurance are now increasingly recognised as value added products that help organisations manage balance sheets and absorb systemic shocks. That shift in understanding takes time, but the marketplace today is very different from where it was a decade ago.
Public-private partnership in practice
Public private partnership has been central to this progress. Institutions and companies working together such as Pool Re or Flood Re and the UK government demonstrate what can be achieved when governments and insurers work together with a long-term view. Governments operate on relatively short political cycles, while risk mitigation often requires a longer-term thinking process. Bridging that gap remains challenging, but the improved conversations being had between public institutions and the insurance sector are something I am particularly proud of.
Personal reflections
On a personal level, chairing the IDF was deeply rewarding. We brought together senior underwriters, CEOs, brokers and public-sector leaders in a way that had not been done before.
The next decade of the IDF
Looking ahead, my primary hope for the next decade of the IDF is that it builds on the foundations that have been built over the last ten years and becomes even more impactful, particularly in regions where engagement has so far been more limited. If we continue to increase global awareness and demonstrate how insurance helps smooth the peaks and troughs of economic shock, the IDF will become even more relevant in its second decade as it has in its first.
