24 of 38 OECD nations insure less than half of disaster losses

The organisation studied hazard exposure and consumer risks across 60 jurisdictions.

Despite rising costs, insurance remains underutilised as less than half of natural hazard losses were only insured in 24 of the 38 Organisation for Economic Co-operation and Development (OECD) member nations.

The OECD released two major reports during its Financial Markets Week Spring 2026, highlighting significant gaps in global insurance coverage and an increase in sophisticated financial fraud.

The first report, Financial Protection Against Catastrophic Risks, reveals that OECD countries faced an average of $32b in economic losses specifically from floods between 2020 and 2024. 

Wildfire risks have escalated even more sharply, with average annual economic losses rising 360% between 2015 and 2024 compared to the 2000–2014 period. 

Whilst insurance is a primary tool for recovery, the OECD warns that shifting weather patterns and rapid technological changes are making it harder for private markets to provide broad protection. 

The organisation is advising governments to intervene by strengthening resilience frameworks. 

This includes assessing whether government-supported financial protection is necessary to maintain coverage for high-risk events like floods and wildfires.

A second publication, the Consumer Finance Risk Monitor 2026, tracks financial threats across 60 jurisdictions. 

It identifies financial scams and fraud as the most significant risk to consumers this year, with the threat expected to grow throughout 2026. These risks are exacerbated by high debt levels, low financial literacy, and the rising cost of living.

The report notes that digitalisation and generative AI are making scams more difficult to detect.