Natural disasters cost Asia-Pacific US$50 billion last year, of which just US$9 billion was covered by insurance, says Munich Re
- Natural disasters caused losses of US$280 billion globally, making it the second-costliest year on record, says the world’s largest reinsurer
- ‘The natural disasters of 2021 have highlighted the enormity of the insurance gap in the Asia-Pacific region,’ said Dr Achim Kassow of Munich Re
Last year’s US$280 billion figure was substantially higher than the US$210 billion in 2020 and the US$166 billion in 2019.
Insured losses totalled around US$120 billion last year.
“The natural disasters of 2021 have highlighted the enormity of the insurance gap in the Asia-Pacific region,” said Dr Achim Kassow, a member of Munich Re’s management board.
There were also huge property and agricultural losses. According to Munich Re, the overall economic cost was around US$16.5 billion, with only about 10 per cent of that insured.
A 7.1-magnitude earthquake struck off the east coast of Japan last February, causing losses of US$7.7 billion. The insured loss was just US$2.3 billion, creating an insurance gap of 70 per cent.
Globally, the US accounted for the highest share of natural disaster costs in 2021, at roughly US$145 billion, of which some US$85 billion was insured. The world’s most expensive natural catastrophe was Hurricane Ida that hit the US and Canada between late August and early September, causing overall losses of US$65 billion of which US$36 billion was insured.
The flash flooding that followed extreme rainfall in Germany last July was the second costliest disaster worldwide in 2021, with an overall loss of US$54 billion, of which US$13 billion was covered by insurance.
“Greater insurance density can help people and countries to better cope with the financial consequences of a disaster and help them return to a normal life.”
Developing public-private partnerships with governments could help prevent uninsured damage, he added.