Asian Nations Face Intensifying Typhoon Impacts in the Northwestern Pacific Basin

Storm systems generally weaken upon landfall, making coastal areas the most at risk. However, some systems can continue to track inland and bring adverse conditions to places far from the coast.  

While climate change is unlikely to increase the number of tropical storms, it will probably increase their intensity, with higher wind speeds and heavier rainfall. Typhoons in Southeast Asia are forming closer to coastlines, intensifying more rapidly, and lasting longer over land, increasing the threat to coastal communities and those further inland.

Storm systems have the potential to have a major impact on areas they pass over, posing a threat to life and causing hundreds of billions of dollars of damage each year. The primary hazard is flooding caused by both storm surge (an abnormal rise in coastal or riverine waters generated by storm winds) and periods of heavy rainfall. Strong winds can also cause property damage, whip up dangerous flying debris, and generate rough seas that pose a threat to mariners and coastal residents. Tornadoes can also occur when storms make landfall. Damage to infrastructure can be substantial, with widespread power outages, contaminated water supplies, major transport disruptions, and interruptions to internet services and mobile communications. Health and emergency services may also be overstretched by the multitude of demands for their services. Transport closures and major supply chain disruptions can lead to a lack of availability of goods and services in the immediate aftermath of a storm.

While the sustained wind speed can be used to gauge the expected level of wind damage, it does not consider other environmental hazards such as storm surge, rainfall, and tornadoes. A slow-moving storm, regardless of its intensity, has the potential to produce lingering showers over a particular region, which may be more impactful than a higher intensity storm that passes rapidly through an area. Additionally, the relative vulnerability and preparedness of an area can greatly affect the level of damage and disruptions. For instance, due to limited resources and constraints in assistance reaching the population in need, some remote Pacific islands may be more heavily impacted by relatively minor storms than coastal areas of mainland Asia. If an island only has one airport or port and these are damaged during the storm, it restricts their ability to receive aid. 

The extensive coastline in the Philippines and Vietnam, with major cities located in low-lying coastal areas, makes a large percentage of the population vulnerable to sea level rise, storm surges, and typhoons. On average:  

• 4-6 typhoons impact Vietnam annually; most landfalls occur in central and northern provinces, with the northern provinces more frequently impacted.
• 8-9 typhoons impact the Philippines yearly, with more landfalls over northeastern and east-central Philippines as typhoons typically track east to west.

Both countries are experiencing rapid urbanization and expansion, with a growing urban population and an increasing number of cities and urban areas. This places strain on existing infrastructure that already has difficulties coping, like Metro Manila in the Philippines, which floods regularly during the rainy season. Urban areas are also more susceptible to flooding and landslides due to increased impervious surfaces and poor urban planning, inadequate infrastructure, and informal settlements contribute to increased vulnerability to typhoons. 

Operations in Asian nations are further complicated by poor infrastructure resilience, lack of business continuity planning, and overstretched local resources. Typhoon Yagi caused extensive damage in Southeast Asia and southern China in 2024, when it made landfall over Aurora Province in the Philippines Sept. 2, Hainan Province in China Sept. 6, and Haiphong and Quang Ninh provinces in Vietnam Sept. 7. Yagi resulted in 433 fatalities in Myanmar, 325 in Vietnam, 52 in Thailand, 21 in Philippines, seven in Laos, and four in China, mainly due to landslides and flash floods. Yagi hit Vietnam's Red River Delta Region, which contains key economic hubs Hanoi and Hai Phong, home to several international factories. Various sectors, especially industry, logistics, tourism, and agriculture, were disrupted, with the supply chain and logistics sector the hardest hit. Authorities took several days to restore power, water, sanitation, and transport networks. Many businesses and individuals were unable to repay loans on time, affecting debts totaling 100 trillion VND, and the insurance industry faced numerous compensation claims. In the aftermath of the flooding, Vietnam urged China to regulate water flow from upstream areas of the Red River and provide advance notice of water releases, with China slowing the release of water from upstream dams and storing water in reservoirs to mitigate downstream flooding peaks.

Post-typhoon recovery can be long and expensive. It can take up to a few years for areas to be fully restored, and there is no guarantee that another storm system will not strike until recovery efforts end. Damage to airports, ports, rail lines, roads, and other transport infrastructure can lead to difficulties in receiving aid or other goods required in the aftermath. There are also many other secondary long-term ramifications that can be attributed to a typhoon, such as a drop in tourism, poor agricultural conditions for future crops, and even long-term mental and physical health impacts on the local community. 

Regardless of the forecast levels of typhoon activity, preparedness is key. Organizations must conduct thorough hazard and vulnerability assessments periodically and ensure contingency plans account for possible worst-case scenarios and the potential direct and indirect impacts on operations and assets. Insurance policies must be studied to ensure coverage for any damage, cancellations, or loss of income that may be incurred following a typhoon. Supplementary protection policies, or parametric-based coverage, may be required for derived events like flooding, landslides, or storm surges. In 2024, Asia recorded USD 91 billion in damages from natural disasters, surpassing its 10-year average. However, only about USD 16 billion of these losses were insured, underscoring that Asia continues to exhibit one of the largest insurance protection gaps globally.

Business leaders must develop and continually review contingency, business continuity, or home emergency plans to ensure they are relevant and proportionate to the potential threat posed by typhoons. Technology-leveraged modeling for scenario planning and predictive intelligence can be used. Crisis communication plans must be tested regularly to check that employees are aware of emergency procedures and evacuation details. Designated emergency contact or aid personnel must also undergo relevant training, including handling lingering mental health concerns.

In the aftermath of a typhoon, persistent water and power shortages, transport route closures that may hinder shipping and employee movement and malfunctioning of damaged equipment are likely. Disease and crime threats may also increase, requiring monitoring and mitigation. Businesses may have to operate with reduced manpower, working hours, or on-site functions for up to a few weeks.

Businesses in Asia must remain agile in planning for and responding to typhoons. Preparedness measures must cover scenarios prior to, during, and immediately after severe storms, as well as long-term impacts. Contingency plans must also account for uncontrollable variables such as city or nationwide infrastructural resilience, emergency response efficiency, and location-specific vulnerability to extreme weather. 

Learn more about leveraging our industry-leading regional and subject matter experts for intelligence that helps your organization stay ahead of risks to your people and operations.