COVID-19’s emergence in 2020 caused macroeconomic resilience to fall by 18%, according to a Swiss Re Institute report.
While global economic growth is expected to recover strongly this year after the pandemic-induced recession in 2020, the resulting macroeconomic resilience will fall short of levels seen pre-COVID-19.
Meanwhile, the global insurance protection gap reached a new high of around $1.4 trillion in 2020, yet global insurance resilience is expected to grow in 2021 due to increased risk awareness.
“Our study clearly shows that economic resilience pays off. Advanced regions benefitted from both stronger levels of macroeconomic resilience and health insurance resilience than their emerging counterparts,” Jérôme Haegeli, Swiss Re Group Chief Economist.
“However, to restore macroeconomic resilience and drive long-term growth, deep structural reforms are needed.”
“The global pandemic has accentuated the gap between the rich and poor. It has laid bare the need for governments to focus on rebuilding and promoting social cohesion. Social equity – and at its heart, creating equal opportunities for all – will be a defining feature of a more resilient world.
“The global insurance protection gap reached a new high of USD 1.4 trillion. Closing this gap would both support long-term economic stability and increase society’s capacity to absorb shocks.
“Making insurance more widely available and affordable will be essential. But re/insurers and leaders in business and government must make resilience a shared priority.”