Recent typhoons batter insurers to a record US$130m in payouts – and there may be more to come
Since 1980, HK has had 53, no.8 signal typhoons, according to Swiss Re, which has now launched a specialist ‘Insur8’ policy
The two typhoons that ripped through Hong Kong, Macau and other parts of southern China last week is likely to cost insurers a record HK$1 billion (US$130 million) in physical damage claims, as well as those to compensate for business interruption.
And the final bill might be added to soon, as another fierce weather front could sweep into the same area over the coming weekend.
“The damage in Hong Kong wasn’t too big, but there was major property damage in Macau, the claims on which are likely to be settled by Hong Hong-based insurers,” said Haywood Cheung, chairman of Target Insurance (Holdings), a Hong Kong-listed motor insurance company.
“The estimated total damage of HK$1 billion would be a record high for a typhoon.”
The extent of the combined carnage wrought by Tyhoons Hato and Pakhar, hasn’t been seen since 1999 when Central and Wan Chai, particularly, came in for a pounding from Typhoon York, resulting in insurance claim payouts of HK$290 million.
This time around, Hato also brought tragedy, claiming 10 lives in Macau and eight in mainland China.
Hong Kong, Tokyo, Seoul, Shanghai and Taipei are all considered to be high risk typhoon areas by the insurance industry.