Kathmandu. Natural disasters are expected to continue to put pressure on the global insurance industry.
Globally, insured losses from natural disasters will continue to put pressure on the insurance industry until insurance companies, regulators and governments improve risk assessments, redesign insurance products, and adjust investments to climate resilience. Research by the Global Asia Insurance Partnership shows that climate change is pushing the insurance industry to a bad point in its insurability. “Where climate risks are so severe or unpredictable that insurance becomes too expensive or unavailable,” the research report said.
The report estimates that global insured losses from natural disasters could reach nearly $107 billion by 2025. That’s the sixth straight year that the damage has exceeded $100 billion.
The Los Angeles fires were the costliest event in 2025. This caused about $40 billion in insured damage. In 2025, severe monsoon rains and cyclones killed more than 1,600 people in Asia.
Min Hung Cheng, CEO of Global Asia Insurance Partnership, said, “The question facing insurance industry is not whether insurance will be impacted, but how prepared we are for the myriad impacts of climate change. ’
The research found that insurance companies face two interrelated challenges. One is the increasing damage from physical climate events and the other is the new risks posed by the global transition to a low-carbon economy. –Agency
