Only 9.1% of Asia's economic losses insured in 2024

The five-year average for insured losses was $11b.

Asia’s insured losses from natural perils totalled $7.8b last year, the third highest amongst other regions, according to Gallagher Re’s latest report.

Meanwhile, total economic losses recorded was $86b. If realised, only 9.1% of the total economic losses in the region were insured. 

However, this was the second year in a row the region incurred notably lower losses than the average economic and global losses.

Notable events last year listed in the report were the Noto Peninsula earthquake – which saw $12b in economic losses and $2b of it were insured.

China’s seasonal floods also totalled $31b, of which only $1b were insured. The Hualien earthquake in Taiwan saw $2.5b economic losses, with $1b insured. Typhoon Yagi, which hit  Southeast Asia and South China, saw $17b in economic losses with only $1b of it insured.

Worldwide, the estimated total direct economic costs from global natural perils were $417b last year.

The private insurance market and public insurance entities covered $154b of that total. 

The annual average loss from natural catastrophes from 2017 to 2024 has cost insurers $146b. This suggests a 'new normal' approaching $150b per year.

The severity and frequency of natural catastrophe events continue to rise, impacting both traditional and non-traditional insurance markets worldwide.