The UN says that only 8% of disaster losses are covered in Asia Pacific despite being the world’s most disaster-prone region.
A report by the body said that only 15 of the eligible Pacific island nations have joined the Pacific Catastrophe Risk Insurance Company (PCRIC) while one country dropped out at the test phase.
The UN Economic and Social Commission for Asia and the Pacific (ESCAP) is trying to drum up more interest in risk coverage, but so far only a handful Pacific island nations have signed up to the insurance scheme, which dispenses rapid payouts in the event of a natural disaster, despite insurers being ready to offer the coverage.
A Willis Towers Watson adviser told Reuters that the limited take up of the insurance is due to island nations’ reluctance to effectively foot the bill for the effects of climate change caused by other countries.
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