Economic losses from natural disasters in APAC last year totalled at least $76bn, which is 41% below the
21st-century average, according to a new report by Aon.
According to Aon's annual "Climate and Catastrophe Insight Report" released in January 2026, the insured losses in the region in 2025 exceeded $7bn, which was 54% below the 21st-century average.
Most of the damage was driven by the Myanmar earthquake last March, flooding in northern and southwest China, cyclones Ditwah and Senyar, Typhoon Matmo, as well as several flooding, drought and wildfire events, each of which surpassed the $1bn loss threshold.
Due to relatively low catastrophe insurance coverage in parts of APAC, aggregated losses remained well below average despite multiple significant events, such as the Myanmar earthquake and flooding in China and South and Southeast Asia.
Industry losses in Australia and New Zealand were close to the decadal average and contributed approximately $3.4bn.
Global economic losses from natural disasters reached $260bn in 2025 — the lowest since 2015 — yet insured losses remained elevated at $127bn, marking the sixth consecutive year that insurance payouts exceeded the $100bn threshold. In many regions, especially emerging markets, more than half of economic losses remained uninsured, leaving millions exposed to financial risk.
The annual report shows how increasingly common high-volume events are reshaping global loss patterns and highlights the critical importance of both physical and financial resilience to help organisations manage volatility and unlock insurability.
Earthquakes in Asia
The Myanmar earthquake on 28 March 2025 accounted for more than 20% of the year’s economic losses in APAC and caused nearly $16bn in economic losses and $1.6bn in insured losses. The death toll was nearly 5,500 —t he event was the deadliest and most devastating earthquake globally since the 2023 Turkey-Syria earthquake.
Two significant flooding events struck China in mid-June (Guangdong) and late July (Beijing), causing an aggregated economic loss of $18.4bn. Combined with all reported events in 2025, the seasonal flooding in China approached $21.5bn, which was consistent with the 21st-century average of $23bn.
Asia cyclones
Cyclones Ditwah and Senyar were the costliest storms, striking Sri Lanka, India and Southeast Asia in late November and early December, causing a combined economic loss of $11.5bn. Despite its relatively low intensity, Cyclone Ditwah proved particularly damaging with a death toll of around 640 people, making it the deadliest natural disaster to hit Sri Lanka since the 2004 tsunami.
Early October tropical cyclone Matmo hit four countries — the Philippines, China, Vietnam and Thailand — causing economic losses of $4.3bn. Among the most impactful were typhoon Ragasa and tropical Storm Wipha, each of which caused economic losses exceeding $1bn.
Wildfire in South Korea
In late March, parts of South Korea were devastated by an enormous wildfire, which caused economic losses of approximately $1bn. The country also suffered from a major flooding event in mid-July, which caused at least $740m in economic losses.
Losses in Australia and New Zealand
Australia experienced two billion-dollar (USD) insured loss events: Ex-Cyclone Alfred in Queensland and New South Wales, and the hailstorm that struck Brisbane and the state of Queensland in November.
Flooding caused notable economic damage: North Queensland flooding in late January ($300m) and Hunter flooding in late May ($270m).
Significant flooding in India and Pakistan at the end of August resulted in economic losses of $3bn. Beyond typhoons and floods, China also suffered other notable events, such as the earthquake on the Tibetan Plateau ($1.3bn) and drought ($1.2bn).
Aon President and CEO Greg Case said, “This year’s report highlights the growing need for collaboration among organisations, insurers, governments and communities. The insurance industry is well-positioned to act as a strategic partner to help navigate these challenges, bringing record levels of capital to help clients respond to weather risks and build increasingly diverse alternative risk transfer solutions to strengthen resilience in the face of a changing climate.”
The report reveals that global fatalities totalled 42,000 and were driven primarily by earthquakes and heatwaves — 45% below the 21st century average. The Myanmar earthquake was the deadliest event apart from heatwaves, claiming 5,456 lives.
Extreme heat caused more than 25,000 deaths globally and remained a major driver of natural disaster-related mortality, as 2025 ranked as the third hottest year on record.
As well as encouraging alternative risk management solutions, the report calls for increased resilience via smarter technology and stronger infrastructure; better forecasting, resilient building standards and modernised infrastructure to reduce long-term damage and assist communities and businesses to recover faster.
Aon Catastrophe Insight Head and author of the report Michal Lorinc said, “Resilience today must be both physical and financial. Organisations are urged to embed adaptation into their workforce and location strategies, invest in predictive analytics and encourage cross-functional approaches to weather risk. As climate events continue to affect people and property, the opportunity lies in using data to strengthen preparedness, rethink risk management strategies and build partnerships that support faster recovery and long-term resilience.”