The study investigates the role of the insurance market in determining the direct economic damage and fatalities from natural disasters in Southeast Asia and Oceania. In particular, if the level of insurance market development influences the outcomes of natural disasters, does it have a mitigating effect? We use quantitative data and apply an econometric approach through pooled OLS and fixed effect models to analyze the relationship between the direct damages from natural disasters and the level of insurance market development in the region. The data is an unbalanced panel and includes losses from natural disasters, insurance penetration, insurance density and various interesting variables. Insurance density is the only focus variable that seems to have an effect on the consequences after a natural disaster, where higher insurance density would lower the direct costs after a natural disaster. The study concludes that the mainly insignificant results is likely due to underdevelopment of the insurance market in the investigated region.