Insurance catastrophe models are failing to factor in a little-known class of earthquake despite it being linked to two thirds of industry losses from seismic events in the last decade.
Munich Re generated a net result of EUR 2,211m ($2.55bn) in the second quarter of 2026 and EUR 3,925m in the first half of the year, bolstered by very low major-loss expenditure in property-casualty reinsurance together with a very strong investment result.
The genesis frequency of tropical storms (TS) over the Northwest Pacific and the South China Sea is forecast to be below normal to near normal LTCA (Long-Term Climate Average) in 2026, approximately 23-25 in total, according to a report released last week by Peak Re.
The Tokyo area, an important data centre hub in Asia-Pacific, is one of the most Nat CAT and climate hazard-exposed locations globally, says a HDI Global report.
Verisk's Catastrophe and Risk Solutions group has estimated insured losses of the 6.8 magnitude earthquake that struck near Kumamoto City in Japan on 28 July to be between JPY220bn ($1.4bn) and JPY340bn.
Munich Re Specialty has launched a parametric earthquake insurance product for corporate clients in Japan, that supports recovery and business continuity even when no physical damage occurs.
The insurance sector is increasingly relying on accurate data and predictive analysis to support more efficient decision-making, contributing to the development of insurance products and enhancing the quality of services provided, according to Mr Ahmed bin Ali Al Mamari, EVP of the Financial Services Authority (FSA).
Insurance claims arising from the massive tremor that struck Japan on 28 July could exceed the average JPY175bn ($1.1bn) recorded for the country's previous six major earthquakes.
Although global natural disaster losses reached $112bn in the first half of 2026-slightly below the ten-year average of $113bn-Asia-Pacific faces growing climate-related threats, according to Munich Re.
A powerful earthquake struck Kumamoto Prefecture, Japan on July 28.