Underinsurance leaves APAC economies to absorb $69b losses

At least 15 events each caused damage exceeding $1b across the region.

Asia-Pacific’s (APAC) economic losses from natural disasters were estimated at $76b in 2025, with only 10% (~$7b) being insured.

According to Aon’s 2026 Climate and Catastrophe Insight report, the Myanmar earthquake was the costliest event of the year, peaking at $16b in economic losses and only $1.6b insured losses.

The 7.7magnitude earthquake in Myanmar, which killed nearly 5,500 people was the deadliest natural disaster globally in 2025 since the 2023 Turkey-Syria earthquake and accounted for more than 20% of APAC’s total economic losses.

Flooding events across China, India, Pakistan and southeast Asia caused widespread damage to homes, infrastructure and agriculture, whilst multiple highimpact cyclones led to significant displacement and loss of life. 

Whilst overall economic losses were below longterm averages, the human impact remained significant, highlighting the disruption that natural hazards can cause even in years with lower overall catastrophe activity.

At least 15 events in the region generated economic losses exceeding $1b. In Japan, economic losses from natural disasters exceeded $700m, with insured losses of about $290m, resulting in a protection gap of about 59%.