Asia insurance covers just a tenth of catastrophe losses

Global modelled insured average annual property loss rose to $152b.

Asia continues to face a large protection gap, with insurance covering only 12% of economic losses from natural catastrophes, compared to 32% in Latin America and 48% in North America, according to Verisk’s 2025 Global Modeled Catastrophe Losses Report. 

The study said the global modelled insured average annual property loss (AAL) has risen to $152b, up $32b from 2024.

Verisk noted that insured losses have averaged $132b annually over the past five years, compared to $104b in the prior five-year period, reflecting inflation, urban expansion, climate change, and more frequent events. 

Frequency perils are now driving losses at twice the rate of large events.