Where the flood line meets the bottom line for storm-hit South-east Asia

[JAKARTA/HO CHI MINH CITY] Catastrophic floods and storms battering South-east Asia and Sri Lanka in recent weeks have killed more than 1,250 people, displaced tens of thousands, and crippled key commodity and manufacturing hubs – a stark reminder of a region already grappling with US$86.5 billion in annual economic loss from natural disasters.

Economists warn that the overlapping disasters are beginning to dent growth momentum as 2026 approaches, forcing governments and investors to reckon with the rising economic costs of intensifying climate risks.

The financial toll is compounded by Asia’s chronic 82.8 per cent insurance gap, which leaves households and businesses to shoulder most climate-related losses, MAPFRE Economics noted.