Asia-Pacific, Africa struggle with $24b in uninsured losses: Munich Re

Only $0.6b was covered by insurance after the magnitude-6 earthquake in Tainan, Taiwan.

Asia-Pacific and Africa regions saw combined losses of $29b in the first half of 2025, with only about $5b of that were insured—highlighting the persistent protection gap in emerging markets, according to Munich Re.

In Taiwan, a magnitude-6 earthquake in Tainan caused economic losses of $1.3b, with $0.6b covered by insurance—mostly through business interruption policies in the semiconductor sector. 

In Australia, Cyclone Alfred triggered $3.5b in damages, of which $1.4b was insured. The storm caused widespread flooding and prolonged power outages in Queensland and New South Wales.

In contrast, insurance coverage was low in Southeast Asia and Africa. A 7.7-magnitude earthquake in Myanmar resulted in $12b in losses, but only a small fraction was insured.

Cyclones in the southwest Indian Ocean caused $1.5b in damages, with Réunion accounting for the bulk of the $0.4b in insured losses, whilst coverage in Mozambique was minimal.

Globally, insured losses from natural disasters reached nearly $80b in the first half of 2025, marking the second-highest total for a first half-year since 1980.

Whilst overall economic losses fell slightly to around $131b from $155b a year earlier, insured losses increased from $64b in H1 2024. 

Both figures remain well above the 10- and 30-year averages, adjusted for inflation.

The increase in insured losses was mainly driven by wildfire-related claims in the United States, particularly those near Los Angeles in January, which became the costliest wildfire event on record. 

Weather-related events accounted for 88% of total economic losses and 98% of insured losses during the period.