Hong Kong businesses affected by vandalism and arson during protests seen filing up to HK$600 million in insurance claims
- Railway operator MTR alone is likely file for HK$100 million in insurance claims to cover damage to its property so far, says an industry expert
- Insurance claims nowhere near the HK$3.1 billion seen after Typhoon Mangkhut tore through the city last year
Insurance claims related to arson, vandalism and loss of business due to anti-government protests may have reached nearly HK$600 million (US$76.5 million) – the third highest in Hong Kong’s history, surpassing the HK$325 million related to Sars (severe acute respiratory syndrome) in 2003.
The claims related to the current protests, however, do not come close to those filed after damages caused by Typhoon Mangkhut, which saw a HK$3.1 billion in overall claims, according to data from Hong Kong Federation of Insurers.
The super typhoon hit Hong Kong on September 16 last year, leading the city’s weather observatory to issue its highest typhoon warning, the No 10 signal, for 10 hours. The storm left a trail of destruction across the city, damaging property and felling at least 46,500 trees. Typhoon Hato, in 2017, saw claims worth HK$858 million.
Protesters have targeted rail operator MTR, mainland Chinese banks such as Bank of China (Hong Kong) and ICBC – and businesses with links to China or whose owners support Beijing.
The MTR alone may seek HK$100 million as it has borne the brunt of protesters’ ire. They have set fire to entrances of almost all its stations and vandalised property. Banks and shops may claim another HK$100 million to rebuild their outlets, branches and ATMs, according to an insurance expert who did not want to be named.