Arab insurers are urged to take more action to address the growing threat of natural catastrophes (Nat CATs) in the region. According to the General Arab Insurance Federation (GAIF), economic losses from natural disasters in Europe, Africa, and the Middle East have reached $155 billion a year, with only $27 billion insured, resulting in a protection gap of 83%. The GAIF launched the Arab Initiative for Natural Disaster Risk Reduction in 2022, aiming to consolidate underwriting capabilities at the Arab level and reduce dependence on states’ budgets to alleviate the impact of natural disasters. The initiative is based on the concept of mutualisation to reduce costs in each country.
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