LOSSES FROM HAIYAN EX­PECTED TO EX­CEED U.S. $300 MIL­LION

Insurance - - INDUSTRY UPDATES -

Source: AIR World­wide (AIR) Press Re­lease, 17 Novem­ber 2013

Catas­tro­phe mod­el­ling firm AIR World­wide es­ti­mates that to­tal dam­age to res­i­den­tial, com­mer­cial and agri­cul­tural prop­er­ties from Su­per Typhoon Haiyan will range be­tween US$6.5 bil­lion (MYR20.96 bil­lion) and US$14.5 bil­lion (MYR46.76 bil­lion). How­ever, be­cause insurance pen­e­tra­tion in the re­gion is rel­a­tively low, AIR es­ti­mates that in­sured losses will range only be­tween US$300 mil­lion (MYR967.46 mil­lion) and US$700 mil­lion (MYR2,257.42 mil­lion). Dr. Peter Sousou­nis, se­nior prin­ci­pal sci­en­tist, AIR World­wide, noted, “The is­lands of Leyte, Sa­mar, and north­ern Cebu are among the worst af­fected ar­eas. Ta­cloban City, the cap­i­tal and big­gest city (pop­u­la­tion of 220,000) of Leyte prov­ince was par­tic­u­larly hard hit as storm surge depths as high as 4 me­ters de­stroyed ev­ery coastal home and left many in­land neigh­bour­hoods in­un­dated with flood­wa­ters.” Many in­land res­i­den­tial and com­mer­cial build­ings were also de­stroyed, and the tiny penin­sula where the Ta­cloban air­port was once lo­cated was lev­elled, leav­ing only the run­way. A cru­cial com­po­nent of pro­vid­ing an ac­cu­rate in­sured loss es­ti­mate is as­cer­tain­ing the storm’s ex­act strength at land­fall. How­ever, this is a chal­leng­ing task, par­tic­u­larly for Haiyan, given that no known anemome­ters in the vicin­ity of land­fall sur­vived the storm.

AIR’s in­sured loss es­ti­mates re­flect: • In­sured phys­i­cal dam­age to prop­erty (res­i­den­tial, com­mer­cial and agri­cul­tural), for both struc­tures and their con­tents due to wind and pre­cip­i­ta­tion-in­duced flood­ing in the Philip­pines • AIR’s as­sumed take-up rates—that is, the per­cent­age of prop­er­ties in the Philip­pines that are ac­tu­ally cov­ered against wind and flood dam­age

• Cur­rent in­dus­try ex­po­sure for the Philip­pines

(US$1.00 = MYR3.22)

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