Asia’s natural catastrophe-related insured losses amounted to $7.8 billion in 2024, according to Gallagher Re’s latest report. This figure ranks as the third-highest globally, though it still represents a fraction of the region’s total economic losses, which reached $86 billion. Only 9.1% of these losses were covered by insurance.
Despite this relatively low percentage, the report highlights that Asia experienced notably smaller losses compared to global averages in both economic and insured terms for the second consecutive year.
The report also lists key events contributing to these losses. Among the most significant was the Noto Peninsula earthquake, which caused $12 billion in economic damage, with $2 billion insured. Additionally, China’s seasonal floods amounted to $31 billion in losses, but only $1 billion was insured. Taiwan’s Hualien earthquake, with $2.5 billion in losses, saw $1 billion covered, while Typhoon Yagi, which impacted Southeast Asia and South China, caused $17 billion in economic damage, with just $1 billion insured.
On a global scale, the total economic costs of natural perils were estimated at $417 billion in 2024. Of this, the private insurance market and public entities covered $154 billion.
The report also notes that the average annual loss from natural disasters between 2017 and 2024 has been approximately $146 billion, signaling a “new normal” of around $150 billion in insured losses annually. The increasing frequency and severity of natural catastrophes continue to challenge both traditional and non-traditional insurance markets worldwide.
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