Cities drive the global economy and insurance market, and yet their high concentrations of physical, financial, digital and human capital make them vulnerable to myriad risks from both natural and man-made threats. These risks are evolving in response to changes in the threat landscape, economic growth dynamics, and mitigation efforts aimed at building resilience.
Not all cities are equally prepared to deal with these risks however. City insurance penetration – a key factor of overall resilience, measuring premium as a share of economic output – varies enormously, with emerging city often managing only a fraction of the penetration levels found in more advanced cities. This has major implications for cities facing high threat levels but at different insurance penetration levels.
This report addresses three main questions related to the process of insurance uptake in cities:
- What risks do cities face?
- How do city risks relate to insurance penetration levels?
- How can insurance products be aligned with city risk profiles and identify insurance growth opportunities?