Munich Re's 2025 NatCat report put APAC weather-related economic losses at $83 billion in 2024, against $31 billion of insured losses. The protection gap (the share of storm and flood damage that no insurance covers) was 63 percent. Munich Re wrote approximately 17 percent of the reinsurance behind those policies. That is the firm naming the gap.

The Western Pacific typhoon season opened June 1. The Philippines, Vietnam, and Bangladesh together average fewer than 1.5 percent of GDP in non-life insurance penetration, per Swiss Re sigma 2025. Typhoon Yagi in September 2024 caused an estimated $22 billion in total losses across Vietnam and southern China, against less than $2 billion in insured losses, per Munich Re preliminary estimates. Parametric cover (policies that pay on a weather trigger rather than an assessed claim) reached fewer than four percent of regional smallholder agricultural exposure in 2025, per World Bank data. Swiss Re will open its January 2027 Asia-Pacific reinsurance renewal discussions in Q3 2026; the rates agreed there set the floor price for wind and flood cover in Manila and Hanoi for the year that follows.