In 2025, losses from natural disasters in the Asia-Pacific cost around $73bn. These work out to about one third of the total global losses due to natural disasters in 2025. This is also above the 10-year average of $66bn. Only $9bn was insured. In many lower-income countries, insurance penetration remains below 5% according to global reinsurer Munich Re.
Globally, natural disasters caused significant losses in 2025, amounting to around $224bn. Of these insurers covered around $108bn. This means that 2025 joins a growing list of years with insured losses exceeding the $100bn mark, despite losses being lower year on year. In 2024, inflation-adjusted overall losses totalled $368bn, of which $147bn were insured. Weather disasters accounted for 92% of all 2025 losses and for 97% of insured losses.
A media release by Munich Re said, “In addition to the earthquake in Myanmar and a series of severe floods during the monsoon season in autumn, flooding in north-eastern China led to aggregate losses of $5.8bn and less than $0.5bn was insured.
“Tropical Cyclone Ditwah was Asia-Pacific’s third costliest natural disaster in 2025, with devastating consequences for Sri Lanka and India in particular. After forming in the northern Indian Ocean in late November, Ditwah caused total losses of around $4bn, of which less than $0.5bn was insured. Although the winds were not very destructive, intense precipitation unleashed extreme flooding and landslides, especially in Sri Lanka. Some 650 people perished.
Almost simultaneously, a noteworthy storm emerged in the Strait of Malacca. Tropical Cyclone Senyar was the first tropical storm on record to form in the body of water between Malaysia and the Indonesian island of Sumatra – close to the equator, where cyclones typically do not originate. Although Senyar was not an especially strong storm, it did result in extreme rainfall for Sumatra and Malaysia, in particular. More than 1,000 people were killed.
In Australia, 2025 was the second most expensive year since 1980 in terms of overall losses caused by natural disasters. Both Cyclone Alfred in February and flooding in May resulted in damage; the thunderstorm season, which kicked off in October and November with severe storms and hail, likewise led to losses.
Munich Re member of the board of management Achim Kassow said, “Asia accounted for nearly one-third of global economic losses from natural disasters, which is substantial. The impact of those losses is greater in the region than in other parts of the world due to the persistent and significant insurance gap. Mitigating risk and extending insurance coverage to more people and businesses remains one of Asia’s most pressing challenges in coping with the effects of climate change.
Munich Re chief climatologist Tobias Grimm said, “A warming world makes extreme weather disasters more likely. Given that 2025 was another very warm year, the past 12 years have been the warmest on record. The warning signs persist. Indeed, under the prevailing circumstances, climate change can worsen further.”
In 2025, around 17,200 people lost their lives in natural disasters worldwide – significantly more than in the previous year (approximately 11,000), but below the 10-year average of 17,800 and 30-year average of 41,900.
At around 50% of total losses, uninsured losses were lower than the 10-year average of around 60% due to the high percentage of insured losses attributable to the Los Angeles wildfires. Disregarding this loss event, the insurance gap matched the 10-year average.