Filed Under:Markets, Commercial Lines

Insured Losses for Typhoon Nesat Expected to Be Under $50M

NU Online News Service, Sept. 30, 1:40 p.m. EDT

After making two landfalls on China, insured losses from Typhoon Nesat are expected to remain below $50 million due to low levels of damage and low insurance penetration, according to catastrophe modeler Eqecat.

Catastrophe modeler AIR Worldwide says Nesat made landfall as a moderate Category 1 storm on the northeastern corner of the island of Hainan on Sept. 29, then turned north and hit the western coast of the Leizhou Peninsula in Guangdong province.

AIR says single-family homes in the regions where Nesat made landfall are primarily of masonry construction. Apartment buildings are made largely of reinforced concrete and confined masonry, while commercial and industrial structures are largely made of reinforced concrete, while older structures are of unreinforced masonry and some confined masonry. AIR notes that, at Nesat’s wind speeds, there may be some isolated instances of minor non-structural damage to well-constructed engineered commercial and apartment buildings.

“Insurance penetration for typhoons is quite low in China, particularly for residential risks, and insurance penetration varies by province, Hainan having one of the lowest rates in China,” says AIR, noting that when there is coverage, wind and flood generally are covered together in the same policy.

Nesat is the 17th typhoon of the 2011 season, and the strongest to strike China this year, AIR says.

Three days before striking the regions in China, Nesat made landfall in the Philippines as a Category 2 storm on northernmost Luzon, causing extensive damage, AIR says.

Featured Video

Most Recent Videos

Video Library ››

Top Story

30 best paying college majors: 2015

It might not take a rocket scientist to guess which college majors lead to the highest paying jobs, but being one would put you near the top of the salary pyramid.

Top Story

Here are the 21 trends that pose the biggest risks to global business in 2015

Swiss Re's latest SONAR report identifies 21 emerging global risks driven by economic, tehnological, socio-political and environmental developments.

More Resources

Comments

eNewsletter Sign Up

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.