Munich Re's NatCat report for 2025, published in January 2026, put APAC weather-related economic losses at $108 billion and insured losses at $39 billion. The protection gap, the share of weather loss that no policy covered, was 64 percent. The Philippines alone recorded $7.9 billion in total storm and flood damage that year; Filipino policyholders recovered $310 million. Four cents returned per dollar lost. Munich Re's Asia-Pacific non-life reinsurance book wrote $2.3 billion in regional premium in 2025, making the firm the single largest external capital source behind the cover that paid out those $310 million. The firm that quantifies the gap is also the firm whose underwriters set the renewal rates that decide whether it widens.

Typhoon season 2026 opened on schedule. The Philippine Atmospheric, Geophysical and Astronomical Services Administration logged its fifth named system of the year on 14 June; three made landfall or near-landfall on Luzon and the Visayas, leaving preliminary damage tallies of $2.1 billion across four provinces. Swiss Re's sigma unit, which carries $1.6 billion in Asia-Pacific catastrophe exposure on its own reinsurance book, tracked Philippine non-life insurance penetration at 0.9 percent of GDP through 2025, unchanged from 2022 and less than two-thirds of the ASEAN median of 1.4 percent. The Philippine Insurance Commission has calendared 30 September 2026 for its board to vote on new parametric product guidelines, rules that would pay on a named wind-speed trigger rather than an adjuster's damage assessment. Swiss Re's sigma team projects that adoption, paired with catastrophe-bond issuance, narrows the protection gap by 8 percentage points before the 2030 renewal cycle.