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