The Asia-Pacific region has been plagued by large-scale natural catastrophes and consequent financial damage in recent years, with total economic losses reaching US$50bn (1.8tn baht) last year according to Munich Re's NatCat (Natural Catastrophes) Service Annual report. Yet, just approximately 17% (US$8.4bn) of those losses were insured, highlighting the large protection gap in this part of the world.
The protection gap is a particularly prominent issue for countries in Southeast Asia, which are characterised by significantly lower insurance coverage as compared to markets in the wider region, such as Australia, Japan and Korea. For Southeast Asia, in the majority of years since 1980, insured losses correspond to less than 3% of overall losses.
