FM Global stresses insurance readiness amidst extreme weather in Asia

La Niña could emerge weakly in late 2024 and early 2025.

The growing intensity of extreme weather events in Asia, influenced by La Niña, rising temperatures, and tropical cyclones, is prompting increased focus on insurance readiness amongst businesses in the region, FM Global said. 

The firm emphasised the importance of adequate coverage and proactive risk management as companies brace for potential disruptions.

La Niña, which could emerge weakly in late 2024 and early 2025, is expected to bring heavy rainfall to countries like the Philippines, Indonesia, and Malaysia, raising the risk of floods and landslides.

Commercial property owners in flood-prone areas are urged to review their policies, particularly for property damage and business interruption coverage. 

In 2011, massive floods in Thailand caused billions in economic losses, serving as a stark reminder of the importance of insurance in mitigating climate-related risks.

The persistence of extreme heat in South and Southeast Asia has also heightened concerns over property damage and health risks. 

Tropical cyclones remain a significant threat, particularly for countries like the Philippines, Vietnam, and southern China, where stronger typhoons are anticipated due to rising sea temperatures.

Whilst La Niña may bring heavy rains to some areas, Singapore and parts of Malaysia could face drought conditions due to shifting moisture patterns.