The insurance industry’s initial losses from Typhoon No. 14, aka Nanmadol, which hit Japan in September 2022, are estimated at 114 billion Japanese yen ($768 million), according to PERILS, the independent organization based in Zurich that provides industry-wide catastrophe insurance. The data.
Based on loss data collected from the majority of the Japanese non-life insurance market, this PERILS estimate encompasses casualty line of business losses that have been incurred by the Japanese insurance industry. non-life insurance. It does not include losses due to physical damage to vehicles and property covered by transport-related policies.
The next updated estimate of market loss due to Typhoon Nanmadol will be available by December 20, 2022, three months after the event end date.
Typhoon Nanmadol was the 14th named storm of the 2022 Pacific Northwest typhoon season and is generally referred to as Typhoon No. 14 in Japan, and internationally as Nanmadol, PERILS said. The system made landfall on Sunday, September 18 at 7:00 p.m. local time near the city of Kagoshima in the south of the island of Kyushu.
The typhoon brought strong winds and torrential rains leading to flooding and landslides. The strongest gust was recorded at Yakushima airport south of Kyushu at 183 km/h (114 mph). The system also produced extreme rainfall, with 907 millimeters (36 inches) of rain recorded in the city of Misato in Miyazaki Prefecture over a 72-hour period, twice the average monthly rainfall in September for this region. .
Despite widespread disruption and extensive property damage, losses to the insurance industry from Typhoon Nanmadol were lower than initially feared. Compared to the major events of the 2018/19 typhoon (e.g. Jebi or Hagibis), the lower than expected level of loss can be attributed to the Nanmadol track, which passed through a lower value concentration zone and the fact that Affected areas are frequently exposed to extreme weather events and therefore well prepared to withstand their impact.
Nevertheless, the losses caused by the event were significant, especially in Miyazaki prefecture on the island of Kyushu, noted PERILS.
These were mainly the result of high winds as well as flooding and landslides caused by the extreme rainfall, simultaneously causing disruptions in electricity and water supplies. As such, Typhoon Nanmadol can be characterized as a particularly “wet typhoon” affecting a wide area across Japan.
“This is the first qualifying loss event since PERILS began providing cover for Japan earlier this year. Large typhoons that make landfall can have a devastating impact. useful for risk assessment, will help increase market transparency and provide additional avenues to secure risk capital, especially for critical perils,” commented Takashi Goda, Senior Advisor for Japan at PERILS.
“During these challenging times for the global re/insurance industry, it is more important than ever to have reliable industry claims figures. Early loss forecasts for Typhoon Nanmadol compared it to Typhoon Jebi, which generated a loss of more than one trillion yen for the Japanese non-life industry. Our systematic, bottom-up approach, where we collect loss information directly from the primary insurers involved, now shows that the loss of Nanmadol is much lower, a fact that is likely to be welcomed by the industry given the market environment and the availability of chat capability,” said Luzi Hitz, CEO of PERILS.
About RISKS
The PERILS Industry Exposure & Loss Database is available to all interested parties through an annual subscription. The database contains industry property sums insured and event loss information at CRESTA zone level and by property line of business. The PERILS Industry Loss Estimates provided through the PERILS Industry Loss Index Service can be used as triggers in insurance risk transactions such as Industry Loss Guarantee (ILW) contracts. ) or insurance-linked securities (ILS). The service currently covers the following 18 countries: Australia, Austria, Belgium, Canada, Denmark, France, Germany, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Sweden, Switzerland, Turkey and United Kingdom . Additionally, PERILS industry exposure data is available for Indonesia, the Philippines and Thailand.
Photograph: A town is flooded due to heavy rain brought by Typhoon Nanmadol, in Kunitomi, Miyazaki Prefecture, southern Japan, Monday, September 19, 2022. Photo credit: Kyodo News via AP.
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