NU Online News Service, Sept. 30, 1:40 p.m.EDT
|After making two landfalls on China, insured losses from TyphoonNesat are expected to remain below $50 million due to low levels ofdamage and low insurance penetration, according to catastrophemodeler Eqecat.
|Catastrophe modeler AIR Worldwide says Nesat made landfall as amoderate Category 1 storm on the northeastern corner of the islandof Hainan on Sept. 29, then turned north and hit the western coastof the Leizhou Peninsula in Guangdong province.
|AIR says single-family homes in the regions where Nesat madelandfall are primarily of masonry construction. Apartment buildingsare made largely of reinforced concrete and confined masonry, whilecommercial and industrial structures are largely made of reinforcedconcrete, while older structures are of unreinforced masonry andsome confined masonry. AIR notes that, at Nesat's wind speeds,there may be some isolated instances of minor non-structural damageto well-constructed engineered commercial and apartmentbuildings.
|“Insurance penetration for typhoons is quite low in China,particularly for residential risks, and insurance penetrationvaries by province, Hainan having one of the lowest rates inChina,” says AIR, noting that when there is coverage, wind andflood generally are covered together in the same policy.
|Nesat is the 17th typhoon of the 2011 season, and the strongestto strike China this year, AIR says.
|Three days before striking the regions in China, Nesat madelandfall in the Philippines as a Category 2 storm on northernmostLuzon, causing extensive damage, AIR says.
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