Munich Re's 2025 NatCat report put APAC weather-related economic losses at $231 billion for the full year, against insured losses of $89 billion, a protection gap (the share of weather losses that no insurance covers) of sixty-one percent. The number has not moved. It has not fallen below fifty-eight percent in any year since 2018, per Munich Re's own annual series. Munich Re wrote approximately twenty-eight percent of the reinsurance capacity behind those policies at the 2025 January renewals, pricing at loss-adjusted margins following three consecutive years of above-average typhoon and flood losses across APAC.

The Western Pacific typhoon season opened June 1. Six named storms formed in the Western Pacific basin between January and the end of May 2026, against a historical average of 4.2 for the same period, per the Japan Meteorological Agency. Vietnam and the Philippines together carry combined catastrophe reinsurance protection of roughly $14 billion for this season, against AIR Worldwide's modeled maximum probable loss of $38 billion for a 1-in-50-year storm crossing the South China Sea. Munich Re's Singapore underwriting desk leads the capacity guidance for Southeast Asian catastrophe covers, with a preliminary rate signal to cedants by October 2026 and binding terms at the January 2027 renewal.