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Issue 178: Asia’s perennial problem of underinsurance

This week in ESG: Only 12.3 per cent of the region’s natural disaster losses were insured

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Janice Lim

Janice Lim

Published Fri, Jan 16, 2026 · 07:00 PM
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    • Asia-Pacific’s underinsurance problem means those with the least financial capacity are bearing the greatest share of economic losses from climate-driven extreme weather events.
    • Asia-Pacific’s underinsurance problem means those with the least financial capacity are bearing the greatest share of economic losses from climate-driven extreme weather events. ILLUSTRATION: TEOH YI CHIE

    Climate adaptation

    The rising costs of climate change

    Asia-Pacific has emerged as the region that is the most underinsured for losses arising out of natural disasters. 

    According to Munich Re’s 2025 natural catastrophe report, only US$9 billion of losses were insured, representing just 12.3 per cent out of overall losses amounting to some US$73 billion.  

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