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Inadequate insurance hurts Asia-Pacific economies by $69 billion

SPIL
Nepal Life

समाचार सुन्नुहोस्

Kathmandu. Natural disaster losses in the Asia-Pacific region were estimated at $76 billion in 2025. Of this, only 10 percent, or $7 billion, was insured. This means that $69 billion worth of damage was not insured.

According to Aon’s 2026 Climate and Disaster Insights report, Myanmar’s earthquake was the costliest event of 2025. As a result, there was a financial loss of $ 16 billion. Of that, only $1.6 billion was insured.

Esewa
Crest

A 7.7-magnitude earthquake killed nearly 5,500 people in Myanmar. It was the world’s deadliest natural disaster in 2025 after the 2023 Turkey-Syria earthquake and accounted for more than 20% of the Asia-Pacific region’s total economic losses.

Floods in China, India, Pakistan and Southeast Asia caused significant damage to homes, infrastructure and agriculture, and many powerful cyclones left large numbers of people homeless. There was a huge loss of life and property.

Although the overall economic losses were lower than the long-term average, the human impact was significant. This highlights the devastation that natural disasters can cause, even in years when overall destructive activity is low.

At least 15 incidents in the Asia-Pacific region caused more than $1 billion in economic damage. In Japan, the economic damage from natural disasters exceeded $700 million. The insured damages amounted to about $29 million. As a result, the safety gap was about 59 percent. – Agency

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