Expert: Most disaster losses uninsured in developing countries

In developing countries, 80-90% of economic losses from natural disasters are uninsured.

Report informs that Elina Moshkovich, founder of Risk University and a risk management and corporate governance consultant, said this at the 11th Azerbaijan International Insurance Forum.

According to her, losses from natural disasters worldwide totaled $220 billion last year, with around half of the losses uninsured. She noted that this creates a serious burden for governments and populations, while also opening opportunities for the development of the insurance market.

Moshkovich cited the earthquake in Türkiye as an example. According to her, most of the damage was not covered by insurance, but the city of Erzin demonstrated the importance of proper risk management, as strict compliance with building standards helped prevent loss of life there.

She stressed that the key task of risk management is to turn information into decisions. According to Moshkovich, organizations need to constantly monitor risks, define acceptable limits and use the data obtained to make more informed decisions, rather than limiting themselves to periodic reporting.