Floods, wildfires, and earthquakes caused billions in damage across Asia-Pacific in early 2025, but insurance coverage remains dangerously low.
Billions Lost in Q1 2025 Natural Disasters
Asia-Pacific countries faced severe natural disasters in the first quarter of 2025. Economic losses reached billions of dollars. However, only a small part of these losses were insured.
Flooding Leads Regional Damage
The biggest cause of damage was flooding, especially in China. Seasonal floods caused major disruptions. Typhoon Yagi also had a strong impact. It was one of the most damaging typhoons since 2014. The Noto Peninsula earthquake in Japan added to the destruction.
Deadly Wildfires in South Korea and Japan
South Korea and Japan experienced major wildfires. South Korea reported 31 deaths, 49 injuries, and over 7,700 structures destroyed. The total loss from the fires was around $1 billion.
Myanmar Earthquake Among Most Costly
The most expensive disaster so far in 2025 was the earthquake in Myanmar. Damages could reach several billion dollars. Most of these losses are uninsured.
Cyclone Alfred Hits Insurers
Ex-Tropical Cyclone Alfred also affected the region. It caused insured losses of about AU$1 billion. This made it the most expensive event for insurers in the first quarter.
Insurance Gaps Highlight Regional Risks
These events follow a highly active year in 2024, with $74 billion in losses but only $4 billion insured in APAC. Aon’s Global Catastrophe Recap notes that limited insurance coverage leaves the region exposed to major risks.
Changing Exposure Increases Risk
Aon warns that while climate change remains a key threat, changes in land use and urban growth in high-risk areas are making natural disasters more damaging. Earthquake risks are still high, as shown by recent events in Taiwan and Japan.
Global Insurance Gap Reflects APAC Weakness
In 2024, natural disasters caused $368 billion in global losses. Of this, just $145 billion was insured. This gap was even wider in APAC, underlining the need for better insurance solutions and improved risk awareness.
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