Asia protection gap remains high at 88% for 2024 to date: Gallagher Re

Asia’s protection gap remains high at 88 percent with just under $9bn of natural catastrophe insured losses in the region for the year to date, according to analysis by Gallagher Re.

Steve Bowen, chief science officer at the reinsurance broker, told The Insurer that 2024 natural catastrophe losses in Asia have been relatively moderate compared to recent history.

“The first half of 2024 was generally benign for the continent, and despite the recent flurry of tropical cyclone activity in recent months, the Western North Pacific Basin remains slightly below average for the total number of typhoons,” he said.

By late October, Bowen said the region had recorded approximately $75bn in economic losses, with insurers covering slightly under $9bn of that total.

“This is well below the full-year decadal averages of $108bn (economic) and $13bn (insured). The protection gap remains high at 88 percent,” he said.

This year’s most notable events include Typhoon Yagi – which heavily impacted parts of Vietnam, China, the Philippines, Thailand and Lao PDR – with losses still being assessed.

“Elevated monsoon rains and its interaction with tropical cyclones have caused seasonal losses in China, India, and the Philippines. On the humanitarian front, extreme heat events have also had a significant impact in the region,” Bowen said.

“Identifying high-risk areas and investment in mitigation measures, in addition to disaster preparedness, are all crucial. Success in reducing fatalities through early warning and evacuation strategies should continue, alongside improving building practices and insurance coverage for high-risk areas. This will also help in alleviating the protection gap.”