The issue in developing countriesIn some developing countries, people consider insurance to be a decisive scheme and find it expensive in terms of paying a premium as they don’t have the affordability. Due to several reasons such as a lack of trust, mismanagement, economic instability, and excessive politicization of the insurance industry, it can’t be a standalone solution to address loss and damages. Additionally, the expansion of insurance companies needs long-term planning and time frames for addressing loss and damages. However, without both short-term and long-term profitability, insurance solutions will not work properly for addressing loss and damages. Also, negotiations on loss and damages finance should focus on addressing both practical questions and political traits which include the enhanced action and support to address loss and damages and the necessity of additional financing.

Source: Dhaka Tribune November 23, 2020 19:18 UTC