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.
Insured losses totalled $44bn, leaving a protection gap of around 60%. The company cautioned that relatively low losses in recent months should not create a false sense of security, particularly as climate change and strengthening El Niño conditions are expected to increase the frequency and severity of extreme weather events across the region.
Asia-Pacific recorded total disaster losses of around $8.7bn, significantly below the ten-year average of $32bn, while insured losses exceeded $1bn compared with the historical average of $5bn. However, the region still experienced several damaging events.
In China, persistent rainfall in May caused widespread flooding across central and southern provinces, resulting in estimated losses of $2.8bn and dozens of fatalities.
Southeast Australia also suffered severe bushfires that caused nearly $1bn in losses, around two-thirds of which were insured.
Meanwhile, India experienced delayed and weaker-than-normal monsoon rains, increasing concerns over drought and agricultural impacts.
Looking ahead, Asia-Pacific is expected to be the region most affected by the developing Super El Niño. The climate phenomenon is expected to bring prolonged heatwaves, droughts, and wildfires to Australia, Southeast Asia, and India, while increasing the likelihood of heavier rainfall and flooding in other parts of the region.
El Niño also shifts tropical cyclone formation farther east in the Northwest Pacific, allowing storms to strengthen over warmer waters. As a result, countries such as Japan, South Korea, and Greater China could face a higher risk of stronger and longer-lasting typhoons during the second half of the year.
Munich Re warned that the combination of climate change and a powerful El Niño could significantly increase both human and economic losses across Asia-Pacific.
Achim Kassow, the company’s Board Member responsible for the region, said recent low catastrophe losses should not overshadow the region’s growing exposure to natural hazards. With insurance coverage remaining limited in many Asian countries, governments and businesses are encouraged to strengthen disaster preparedness, invest in climate adaptation, and expand insurance protection.