Severe Disaster Losses Strike Asia in 2025

In 2025, natural disasters inflicted profound economic shocks on the global economy, with the Asia–Pacific region emerging as the most severely affected. According to international reinsurance data, total global economic losses from natural disasters reached approximately USD 224 billion, of which the Asia–Pacific accounted for around USD 73 billion—nearly one-third of the global total. This figure far exceeds the average annual losses of roughly USD 66 billion observed over the past decade, underscoring the exceptional economic impact of the year’s disasters.

A major contributing factor to the elevated losses was limited financial protection. Of the USD 73 billion in damages in Asia, only about USD 9 billion was covered by insurance. This left the bulk of the losses to be absorbed directly by households, small and medium enterprises, and public finances. In many low- and middle-income countries, insurance penetration remains below 5 per cent, prolonging post-disaster recovery, increasing poverty risk, exerting pressure on government borrowing, and exacerbating long-term economic vulnerability.

Globally, 2025 also witnessed shifts in the nature of disaster risk and insurance coverage. While total economic losses were slightly lower than in the previous year, insured losses surged to nearly USD 108 billion. This marks the second time that insured losses have exceeded USD 100 billion, reflecting both the rising frequency of damaging events and the expansion of insurable assets.

Extreme weather events were the primary drivers of these losses. Floods, heavy rainfall, cyclones, storms, and snow events accounted for approximately 92 per cent of global economic losses and nearly 97 per cent of insured losses. Rather than a single catastrophic event, repeated widespread extreme weather proved to be the key factor behind economic damage.

Several specific disasters in Asia had particularly severe consequences. Myanmar experienced a powerful earthquake, multiple countries faced seasonal floods, northeast China endured major waterlogging, and cyclones in the northern Indian Ocean caused extensive human and economic losses in Sri Lanka and parts of India. Insurance coverage for these events was limited, further highlighting regional vulnerability.

Humanitarian impacts were also significant. Worldwide, approximately 17,000 people lost their lives due to natural disasters in 2025. Experts emphasise that reliance on emergency relief alone is insufficient; long-term resilience requires risk forecasting, climate-resilient infrastructure, planned urban development, and comprehensive insurance and risk-sharing mechanisms.

Summary of 2025 Natural Disaster Losses

The 2025 disaster landscape underscores the urgent need for enhanced financial protection, disaster preparedness, and climate adaptation strategies to mitigate both economic and humanitarian impacts in Asia and worldwide.