Flooding in Thailand is expected to bring insured losses of more than 309 billion baht (US$10 billion), with estimated economic losses of 1.41 trillion baht, according to reinsurance intermediary Aon Benfield.
“With assessments under way, it’s clear that billions in insured losses from the flooding will make this the costliest natural disaster event in Southeast Asia’s recorded history,” said Steve Jakubowski, president of impact forecasting at Aon Benfield, in a statement.
Commercial and personal properties, with about 4 million homes and thousand of businesses, were damaged by the floods across Thailand. “The losses also add to what already was one of the most economically active natural catastrophe years ever around the globe,” said Jakubowski.
Of the 1.41 trillion baht in economic losses estimated by the World Bank, 661 billion baht and 689 billion baht came from property damage and lost productivity, respectively. The hardest hit industries were electrical appliances and equipment, medical equipment, automobiles and food and beverage manufacturers.
In total, more than 13.4 million people were affected in at least 64 of Thailand’s 77 provinces. As flood waters throughout Thailand continue to recede, Jakubowski said “the true scope of the disaster’s impact is starting to be realized.” A preliminary insured loss estimate by the Office of Insurance Commission was 200 billion baht, but some industry projections suggest the losses to exceed 309 billion baht.
Swiss Re said the Thailand floods are expected to bring it losses of US$600 million, net of retrocession and before tax. Total insured losses are predicted to amount between US$8 billion to US$11 billion, according to Swiss Re (Best’s News Service, Dec. 6, 2011).
The flooding has a significant impact on Japanese nonlife insurers, which offer insurance coverage for Japanese manufacturers and companies operating in Thailand. Tokio Marine Holdings Inc. said Thailand flooding is expected to cause net incurred losses of about 100 billion yen (US$1.3 billion) on a consolidated basis, including its major subsidiary Tokio Marine & Nichido Fire Insurance Co.
MS&AD Insurance Holdings Inc. said the Thailand floods are expected to bring losses of about 130 billion yen for the group. NKSJ Holding Inc. said the floods are projected to cause a net incurred losses of 30 billion yen, of which half of the amount is assumed to be paid this 2011 fiscal year (Best’s News Service, Nov. 22, 2011).