In its Topics Online article, Munich Re reported that many risks are not yet sufficiently covered by insurance in developing and emerging countries, resulting in the so-called protection gap, which is the difference between total economic loss and insured loss. Joaquim Levy, Managing Director and World Bank Group CFO, addressed the topic in a speech at this year’s Chief Risk Officer Assembly in Munich . "We are concerned about the fact that in many emerging-market countries, risk-sharing mechanisms such as insurance are not sufficiently developed in view of the significant challenges posed by natural disasters and climate risk. Financial savings and insurance are used by only about 17% of people in low- and middle-income countries, compared with 45% of people in high-income countries. Catastrophe-risk insurance penetration is even lower; usually less than 5% in most developing countries," said Mr. Levy.

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