Only 12.3% of natural disaster losses in Asia-Pacific for 2025 were insured: Munich Re

[SINGAPORE] Only US$9 billion of losses from natural disasters in Asia-Pacific for 2025 were insured, out of overall losses amounting to US$73 billion, based on Munich Re’s 2025 report on natural disasters.

This means that only 12.3 per cent of losses were insured on average across the region. However, in many lower-income countries, the insurance penetration remained below 5 per cent, said the report released on Tuesday (Jan 13).

This makes Asia-Pacific one of the least insured regions against natural disasters. While North America, including Central America and the Caribbean, had the highest overall losses at US$133 billion, about US$93 billion was insured.

As for Europe, about half of its total losses of US$11 billion were insured. Natural disasters in Africa resulted in losses of about US$3 billion, and about less than 20 per cent were insured.

Asia-Pacific was also the region with the second-costliest natural disaster of the year – the Myanmar earthquake, which struck on Mar 28.

It led to 4,500 fatalities with overall losses amounting to around US$12 billion, of which only a small amount was insured.

While 2025 was an unusual cyclone season given that no hurricane struck mainland United States for the first time in 10 years, South-east Asia was affected more than usual, including Thailand, Vietnam, Indonesia and the Philippines.

China was also severely affected with flooding in the north-eastern part of the country that led to aggregate losses of US$5.8 billion, of which less than US$500 million was insured.

Cyclone Ditwah, which hit Sri Lanka and India late last year, was Asia-Pacific’s third-costliest natural disaster causing total losses of around US$4 billion. Less than US$500 million was insured.

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Across the globe, natural disasters in 2025 caused damage amounting to about US$224 billion, of which US$108 billion was insured.

Losses were lower compared with 2024, which totalled US$368 billion after adjusting for inflation, of which US$147 billion was insured.