A recent report by The Geneva Association has highlighted growing pressure on public–private insurance programmes worldwide, warning that rising disaster risks are testing the long-term viability of existing insurance frameworks unless stronger risk-reduction measures are introduced.
The study examined 14 public–private insurance programmes (PPIPs) and found that while many have contributed to stabilising insurance markets and expanding access to coverage, they continue to face structural challenges. These include increasing financial liabilities, the potential displacement of private insurers, and limited incentives for policyholders to adopt measures that reduce exposure to risk.
According to the report, both natural and human-induced disasters—such as floods, wildfires, cyberattacks, and pandemics—are occurring with greater frequency and severity. This trend is placing additional strain on conventional insurance systems and government disaster relief mechanisms. As a result, uninsured losses are rising, while public finances are coming under growing pressure.
The Geneva Association noted that effective PPIPs must strike a balance between four core objectives: ensuring affordable access to insurance coverage, safeguarding public finances, encouraging participation from the private sector, and enabling the prompt settlement of claims following disasters.
The organisation’s managing director, Jad Ariss, stated that such programmes should evolve beyond a model focused primarily on post-disaster compensation. Instead, he emphasised the importance of strengthening prevention and resilience, reducing risk exposure, and supporting faster recovery processes while easing fiscal pressure on governments.
Hélène Schernberg, Director of Public Policy and Regulation at the organisation, added that policymakers should adopt a structured approach when designing PPIPs. This includes assessing existing protection gaps, prioritising investments in risk reduction and improvements to private insurance markets, and clearly defining the level of risk that governments are prepared to assume.
The Geneva Association, whose member companies are headquartered across 26 countries, manages approximately US$21 trillion in assets and provides protection to around 2.6 billion people globally. The report concludes that integrating risk reduction more effectively into insurance frameworks will be essential to maintaining affordable and reliable disaster coverage in the future.
Key findings from the report
| Area assessed | Observation |
|---|---|
| Programme coverage | 14 public–private insurance programmes reviewed |
| Market impact | Helped stabilise markets and expand coverage |
| Main challenges | Rising liabilities, private sector displacement risk, weak risk-reduction incentives |
| Disaster trends | Increased frequency and severity of floods, wildfires, cyberattacks, pandemics |
| Fiscal impact | Growing strain on public finances and rising uninsured losses |
| Policy direction | Stronger integration of risk prevention and clearer government risk-sharing frameworks required |