Financial Services Agency Announces Key Outcomes from G20 Side Event on Natural Disaster Insurance Protection Gap
Tokyo, Japan – July 31, 2025 – The Financial Services Agency (FSA) of Japan today announced the public release of information concerning a significant side event held in conjunction with the G20 Finance Ministers and Central Bank Governors’ Meeting. The event focused on addressing the critical issue of the “insurance protection gap” related to natural disasters, and the FSA has now made public the input papers submitted by the International Association of Insurance Supervisors (IAIS) and the World Bank to the G20 process. This proactive disclosure highlights Japan’s commitment to international cooperation in mitigating the financial impacts of climate-related risks and natural catastrophes.
The side event, held on the occasion of the G20 Finance Ministers and Central Bank Governors’ Meeting, provided a crucial platform for high-level discussions on a challenge that affects economies worldwide. The insurance protection gap refers to the discrepancy between the potential economic losses from natural disasters and the amount of insurance coverage available to protect against those losses. This gap can have devastating consequences for individuals, businesses, and national economies, hindering recovery efforts and exacerbating vulnerabilities.
The input papers submitted by the IAIS and the World Bank to the G20 process, now made available by the FSA, represent the culmination of extensive research and analysis. These documents are expected to offer valuable insights and actionable recommendations for enhancing insurance coverage and building greater resilience in the face of escalating natural disaster risks. The IAIS, as the global standard-setter for insurance regulation and supervision, likely contributed expertise on prudential frameworks and supervisory practices to ensure the stability of the insurance sector in dealing with disaster-related claims. Concurrently, the World Bank’s contribution is anticipated to shed light on the broader economic and developmental implications of the protection gap, potentially proposing solutions that involve public-private partnerships, innovative financial instruments, and capacity-building initiatives in vulnerable regions.
The FSA’s decision to publicize these materials underscores Japan’s dedication to fostering transparency and knowledge sharing within the international community. By making these important documents accessible, the FSA aims to promote a deeper understanding of the complexities surrounding the insurance protection gap and encourage broader engagement from stakeholders, including policymakers, insurance industry representatives, researchers, and civil society. This initiative aligns with Japan’s ongoing efforts to strengthen disaster risk management and promote sustainable development, particularly in light of the increasing frequency and severity of natural disasters attributed to climate change.
The public release of these G20-related materials by the FSA signifies a crucial step forward in the global dialogue on natural disaster risk financing. It is hoped that the insights contained within the IAIS and World Bank input papers will inform future policy decisions, inspire innovative solutions, and ultimately contribute to closing the insurance protection gap, thereby safeguarding communities and economies from the devastating impacts of natural catastrophes. The FSA’s proactive approach in sharing this information demonstrates a commitment to collaborative action and a forward-looking vision for building a more resilient global financial system.
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金融庁 published ‘G20財務大臣・中央銀行総裁会議に際し開催された自然災害に係る保険プロテクションギャップへの対処に関するサイドイベント、並びにIAIS及び世界銀行が G20プロセスに提出したインプットペーパーについて公表しました。’ at 2025-07-31 17:00. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.