Notable seasonal monsoon flood activity in parts of Asia, such as China, Japan, Pakistan and India in 3Q2025 drove a large portion of the globe's economic flood loss total to date of $28bn, according to Gallagher Re's report, titled "Natural Catastrophe and Climate Report".
The report also showed that flooding in Pakistan alone resulted in at least 1,037 fatalities.
It also noted that the largest non-US event remained the catastrophic earthquake in Southeast Asia; where the epicentre was in Myanmar but whose impacts spread into parts of Thailand. The event caused an estimated $15bn in economic damage.
Despite these losses, Gallagher Re chief science officer Steve Bowen said the CAT year has been manageable so far, though the industry should also continue to expect annual volatility in Nat CAT losses in the future.
“We should continue to expect that low frequency/probability events may become a bit more likely as the ‘tail’ shifts. The change in hazard behaviour/frequency, in combination with other socioeconomic/macroeconomic factors, will ultimately drive greater loss potential,” said Mr Bowen.
“You can see that when comparing the most recent historical five-year (2020 to 2024) average annual loss (AAL) of $155bn to the 10-year AAL (2015 to 2024) of $135bn. Building financial underwriting protections against loss volatility is critical.”