Asia-Pacific losses fall as insured damage hits $1b in H1 2026

Australia’s bushfires generated almost $1b in economic damage.

Natural disaster losses in Asia-Pacific (APAC) fell well below average in the first half of 2026, and just over $1b was insured, against the 10-year average of $5b.

Economic losses across the region totalled about $8.7b during the six months to June, compared with the inflation-adjusted 10-year average of $32b, according to Munich Re.

Persistent rain caused widespread flooding in central and southern China during May. Some areas received up to 400 millimetres of rain, whilst more than 100 rivers reportedly overflowed. About 45 people were killed, and nationwide losses were estimated at $2.8b. Only a small share was insured.

Bushfires in south-east Australia caused almost $1b in losses, with about two-thirds covered by insurance. Australia also experienced heatwaves, although their financial effects are harder to measure because they mainly affect productivity rather than property.

In India, the monsoon arrived later than usual, and rainfall remained below normal. Munich Re said strengthening El Niño conditions could increase the risk of drought and affect agriculture.

The risks are expected to rise during the second half of the year. El Niño often increases the likelihood of heatwaves, drought and wildfires in Australia and parts of South-East Asia. It can also raise rainfall and flood risks in other parts of Asia by changing monsoon patterns and typhoon activity.

El Niño can shift the formation of typhoons in the north-west Pacific further east. This gives storms more time over warm ocean waters, allowing them to strengthen and last longer. Their tracks can also move northwards, increasing the risk to Japan, Korea and Greater China.

Globally, natural disasters caused nearly $112b in economic losses during the first half of 2026. About $44b was insured, leaving 60% of the losses without insurance cover.

The overall figure was slightly below the inflation-adjusted 10-year average of $113b. Insured losses were also below the 10-year average of $50b.

The most destructive event was a double earthquake in Venezuela on 24 June. Two earthquakes measuring magnitudes 7.2 and 7.5 struck near Morón, about 200 kilometres west of Caracas.

Thousands of people were reported killed. Preliminary estimates put the overall losses at about $30b, with less than $1b insured.

Severe thunderstorms in the United States were the largest source of insured losses. They caused about $30b in overall damage, including $22b in insured losses.

An April storm outbreak across the central United States produced about 100 tornadoes, including an EF4 tornado with wind speeds of up to 290 kilometres per hour. The event caused $5.8b in losses, of which $4.1b was insured.

Natural disasters in North America caused about $47b in losses during the period, including $34b covered by insurance.

Europe recorded about $22b in natural disaster losses, with just over $7b insured. Both figures were above the region’s 10-year averages.

Nine winter storms affected Portugal and Spain early in the year. Storm Kristin, the most damaging, brought winds of up to 170 kilometres per hour and heavy rain in late January. It caused about $7.7b in losses, including $1.8b in insured damage.

Heatwaves also affected Europe and North America. In June, the German town of Möckern recorded a temperature of 41.8°C, which was 0.6°C above the country’s previous record.

Germany recorded more than 5,000 heat-related deaths between April and June, according to estimates from the Robert Koch Institute.

Heatwaves can reduce labour productivity, interrupt production and transport, damage infrastructure and affect crops. An OECD study found that 10 additional days with temperatures above 35°C could reduce annual labour productivity by an average of 0.3%.

Africa recorded about $2b in natural disaster losses, with only a small proportion insured. Storms and flooding in South Africa during May caused more than $500m in damage.

Munich Re said forecasts pointed to strong El Niño conditions towards the end of 2026. The climate pattern can raise global temperatures and change rainfall, drought, wildfire and tropical cyclone risks in several regions.