Until now, PPE - public private enterprises have been effective and simple vehicles to provide this solution, but the changing nature of the industry, as well as the structural changes of the economy will increase the need to adapt, change and look to new solutions to assist in moving the protection gap to the private sector.
An example in this direction is set by terrorism reinsurance pools. These were established after 9/11. But in the last 17 years, tbe attacks/ events have become more frequent and of smaller quantum.
Terrorism pools have recognized the changes in the nature of perils and the impact of insured risks and continued to explore solutions to close the protection gap. For example, POOL Re has recently introduced cyber terrorism and will add in 2019 a non-damage business interruption.
These changes demonstrate the need for pools to be flexible and adaptable to the changing environment in which they are operating - also by addressing non-insurance and under-insurance, or the supply and demand gaps within the changing protection gap, according to AON.