Southeast Asia Flood Risk to Surge Tenfold

Economic losses from floods in Southeast Asia are projected to increase by as much as tenfold in the coming years, driven by the escalating frequency of extreme weather events. Insurance broker Willis Towers Watson (WTW) indicates that major regional flooding could now surpass $10 billion in economic losses, a significant jump from the $1 billion to $2 billion range observed over the past decade.

This surge in risk is linked to warmer oceans, altered storm formation zones, and increased track sensitivity, making historical weather patterns less reliable for future predictions. Last year concluded with three tropical cyclones causing extensive damage from Sri Lanka to Indonesia, resulting in over 1,300 fatalities and at least $20 billion in losses.

Countries like the Philippines, Myanmar, and Vietnam are consistently identified as highly vulnerable to climate change impacts. Researchers have warned that while climate change exacerbates flood impacts, deforestation, inadequate flood defenses, and insufficient disaster resilience funding also heighten potential damage.