Bridging the Protection Gap: Affordability, Access, and Risk Prevention, the latest report issued by global consultancy Bain & Company delivers a sobering assessment of the widening protection gap. As the insurance industry grapples with structural shifts, from climate volatility to evolving consumer behaviors, the report urges insurers to take decisive steps to remain relevant—and resilient.

Protection at risk

Bain warns that by 2030, only 25–33% of natural disaster-related losses will be insured globally, while mortality coverage could drop below 50%. These numbers highlight a systemic issue: insurers are struggling to keep pace with the escalating frequency and severity of natural catastrophes, cyber incidents, and social risks.

What’s more, affordability is becoming a critical barrier. In the U.S., soaring property insurance premiums have priced many homeowners out of the market. Meanwhile, traditional life insurance is losing traction, particularly among younger generations, due to shifting savings habits and declining trust in conventional financial products.

Why growth alone won’t bridge the gap

The report cautions against relying on premium growth alone - especially as much of the recent expansion has been fueled by price increases rather than by greater penetration or product innovation. Without addressing core challenges related to access and value, insurers risk becoming disconnected from the very consumers they aim to protect.

A call to rethink the model

To reverse the trend, Bain calls on insurers to rethink their products, distribution channels, and partnerships. Emphasizing prevention over pure risk transfer, leveraging AI and unstructured data for better underwriting, and collaborating with governments and alternative capital providers are all key strategies identified in the report.

Bain’s central message is clear: the protection gap isn’t just a challenge - it’s an opportunity. By innovating and aligning more closely with today’s risk landscape, insurers can restore relevance, expand reach, and help safeguard society’s most pressing needs.

The full report is available at Bain & Company’s website.