Swiss Re's sigma No. 2/2026 puts APAC natural catastrophe losses in 2025 at $89 billion in total economic damage, with insured losses at $32 billion. The protection gap -- the share of weather losses that no insurance policy touched -- ran to $57 billion, or 64 percent of the total. Swiss Re wrote roughly $18 billion in reinsurance premium across Asia-Pacific last year, and their 2025 annual report discloses that cat-exposed property lines represent the largest single segment of that book. The firm publishing the gap number is the firm pricing the reinsurance that determines whether the gap closes.

The 64-percent figure does not move evenly across the region. Philippine typhoon losses in 2025 carried an 82-percent protection gap, per the Insurance Commission's January 2026 filing with IATF-EID; Vietnamese flood losses from Typhoon Trami's inland remnants ran to $4.1 billion economic, $190 million insured, a gap above 95 percent. The distribution matters because parametric products -- instruments that pay on a measured trigger, wind speed or rainfall depth, rather than assessed damage -- have been piloted in both markets, with the World Bank's Global Shield Financing Facility committing $500 million to parametric sovereign covers in ASEAN by Q3 2026. That commitment comes to the market at the June-July treaty renewal window, when reinsurers set the rates and attachment points that will decide whether parametric capacity reaches community-level buyers or remains a sovereign balance-sheet instrument. Swiss Re's own parametric structuring desk in Singapore closes its Q2 pipeline review on 30 June 2026.