The United Nations warns economic losses from natural disasters in the Asia-Pacific region could cost more than $US160 billion ($211 billion) a year by 2030.

At an event discussing financing for disaster risk reduction, the UN’s Economic and Social Commission for Asia and the Pacific (ESCAP) noted low insurance coverage has persisted even as the region suffered almost $US1.3 trillion ($1.72 trillion) in losses over the past 50 years. Only 8% of the region’s losses are insured.

The government and businesses have been left to bear the cost, and with increasingly crowded cities and extreme weather events becoming more likely, the gap in cost recovery will widen.

The UN body urges greater innovation in disaster risk funding.

ESCAP Executive Secretary Shamshad Akhtar says recent innovations provide opportunities to improve cover, including catastrophe risk modelling, parametric insurance, a mix of traditional and global financial reinsurance, and concessional insurance.