Kathmandu. In 2025, only about 11.5 per cent of the economic losses caused by natural disasters in the Asia-Pacific region were insured. That’s equivalent to $10 billion in total economic losses of $87 billion. <\/p>\n
According to the Gallagher RICO January 2026 Natural Disasters and Climate Report, insurance companies in the Asia-Pacific region faced significant catastrophic losses in 2025. However, overall insured losses decreased worldwide. <\/p>\n
From 2016 to 2025, Asia’s security gap was 88 percent. This means that most of the catastrophe damage was uninsured property. This presents both challenges and opportunities for insurance companies and reinsurance companies operating in the sector. <\/p>\n
One of the most costly events for the region was the monsoon floods in China. This caused an economic loss of $ 23 billion. <\/p>\n
Insured damages were limited to about $600 million. The lack of access to insurance meant that much of the financial burden fell on governments, businesses, and households. <\/p>\n
On March 28, an earthquake struck Myanmar, causing $15 billion in economic damage. Of this, $2.3 billion was insured. <\/p>\n
Most of the impact insured was focused on Thailand. This incident has once again exposed the gap between economic and insured property damage in emerging Asian markets. <\/p>\n
Tropical cyclones also caused damage. Cyclone Senyar, which hit Thailand, Indonesia and Malaysia, caused $11 billion in economic damage. However, only about $800 million worth of assets were insured. <\/p>\n
Insured damages in the western North Pacific were about $1.0 billion for the year. That’s the lowest level for the basin since 2010. <\/p>\n
The northern Indian Ocean basin was economically the most expensive in the world. The forecast for 2025 was $16 billion. However, only $1.1 billion of this amount was insured. <\/p>\n
Two rare cyclones, Senyar and Detwah, caused severe flooding and landslides in Thailand, Indonesia and Sri Lanka. This caused significant human and economic losses. However, the availability of insurance remained limited. <\/p>\n
In August, floods in Japan caused $500 million worth of damage to insured property. This shows that while overall regional penetration has declined, Asia’s mature market continues to generate substantial insurance claims. <\/p>\n
Insured property losses of approximately $7.2 billion in 2025 in the Asia Pacific region were significantly less than the United States’ total of $100 billion. This difference reflects both lower insurance penetration and differences in market maturity. <\/p>\n
The report says that while global reinsurance capital remains strong at $838 billion, the Asia-Pacific region remains structurally underinsured. For insurance companies, this means that disaster volatility will continue to disproportionately impact local balance sheets. Governments in the region will often bear a large share of the cost of disasters. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. In 2025, only about 11.5 per cent of the economic losses caused by natural disasters in the Asia-Pacific region were insured. That’s equivalent to $10 billion in total economic losses of $87 billion. According to the Gallagher RICO January 2026 Natural Disasters and Climate Report, insurance companies in the Asia-Pacific region faced significant catastrophic […]<\/p>\n","protected":false},"author":16,"featured_media":239338,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-288935","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/288935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=288935"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/288935\/revisions"}],"predecessor-version":[{"id":288936,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/288935\/revisions\/288936"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/239338"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=288935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=288935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=288935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}