Income and wealth inequality are increasing in most advanced economies. At the same time, social safety nets are eroding. Together, these trends can create inclusion gaps, where certain socio-economic or socio-demographic groups have inadequate protection against financial risk.
This Geneva Association report explores inclusion gaps for six demographic groups in advanced economies – the elderly, Gen Z, self-employed workers, low-income earners, migrants and the chronically ill. A survey of over 28,000 households in France, Germany, Italy, Japan, Spain, the U.K. and the U.S. revealed that low-income earners, Gen Z and migrants are disproportionately underinsured across all markets. Private health and residential property insurance are the most needed types of additional coverage across all countries and subgroups.
The report identifies four key barriers to inclusive insurance – unaffordability, unavailability, inaccessibility and lack of awareness – and suggests concrete steps for insurers to overcome these obstacles.
