The Asia-Pacific region sustained billions of dollars in economic damage from natural disasters in the first quarter of 2025 (Q1 2025), most of which were not covered by insurance, according to Aon’s Q1 Global Catastrophe Recap – April 2025.
The report provided an overview of significant catastrophe events between January and March, underscoring both the financial toll and protection gap that continues to affect the region.
One of the quarter’s most devastating incidents was a March earthquake in Myanmar, which resulted in more than 5,400 deaths. Economic losses from the event are expected to reach into the billions, but insurance coverage is minimal.
In South Korea, wildfires destroyed over 7,700 buildings and caused 31 fatalities, generating an estimated US$1 billion in losses.
Ex-Tropical Cyclone Alfred, which impacted parts of Australia, accounted for the highest insured losses in the region for the quarter, with claims near AU$1 billion.
George Attard, CEO of reinsurance solutions for APAC at Aon, said the escalating extreme weather and seismic risks reflect the growing need for innovative and scalable mitigation strategies.
“Extreme weather and seismic events remain a powerful force driving the complexity and volatility that businesses and communities face and emphasises the urgent need for innovative mitigation solutions to address this growing challenge,” he said.
Aon’s quarterly findings align with its broader 2025 Climate and Catastrophe Insight report, which estimated total economic losses in APAC at US$74 billion for 2024, with just US$4 billion covered by insurance.
The report identified flooding – particularly in China – as the primary cause of those losses. Events such as Typhoon Yagi, which caused nearly US$13 billion in damage across multiple Southeast Asian countries, and Japan’s Noto Peninsula earthquake also contributed significantly.
According to Aon, the concentration of populations and infrastructure in disaster-prone areas, more than climate variability alone, is reshaping loss outcomes.
The firm also noted improvements in flood modelling but called for better regional coordination to support risk reduction.
“A comprehensive, multi-country strategy, together with advanced modelling and data inputs, [is] critical in helping risk managers prepare for future events as climate and exposure trends continue to evolve,” said Peter Cheesman, head of risk capital analytics for APAC at Aon.
