Munich Re Expects Over $650M in Thailand Flood Losses

NU Online News Service, Dec. 8, 1:20 p.m. EST

Global reinsurer Munich Re says it expects its share of losses from flooding in Thailand to be around €500 million ($666.1 million at current exchange rate) net before tax.

Munich Re says the widespread floods, which reached their highest point in October and November, are the costliest natural catastrophe in the country's history.

Swiss Re, which earlier this week said it expects its share of losses from the event to be $600 million, says the intense rainfall over the last few months killed hundreds and flooded approximately 1,500 industry facilities.

Swiss Re says it expects total insured losses in the range of $8 billion to $11 billion, and Aon Benfield, a subsidiary of Chicago-based insurance broker Aon Corp., says industry losses could exceed $10 billion while total economic losses could come in at around $45 billion.

Munich Re says in a statement, “The consequence of the floods includes not only damage to buildings, but also, and more importantly, the often expensive production facilities housed in them.”

Munich Re board member Torsten Jeworrek says, “Thailand is a wake-up call. In emerging countries of growing significance to the interconnected global economy, the provisions made for, and adaptation to, such natural hazards need to be improved in order to contain the losses. The insurance industry is willing and able to help in this respect, primarily of course by carrying risks at commensurate prices, terms and conditions.”

Because of its low elevation above sea level, the plain of central Thailand, which is where the capital Bangkok is situated, is prone to flooding throughout the rainy season from mid-May to October, Munich Re says. “The cause of this year's floods, which the authorities have classified as the worst in 50 years, was exceptionally heavy rainfall before and particularly during the rainy season,” Munich Re adds. “It is presumed that the La Niña natural climate phenomenon was a contributory factor, since the rainy season is often stronger during La Niña phases.”

Comments

Resource Center

View All »

Increase Sales Conversion with this Complimentary White Paper

This whitepaper will share proven techniques - used by many of the industry's top producers...

D&O Policy Definitions: Don't Overlook These Critical Terms

Unlike other forms of insurance where standard policy language prevails, with D&O policies, even seemingly...

Environmental Risk: Lessons Learned from Willy Wonka and the Chocolate...

Whether it’s a chocolate factory or an industrial wastewater treatment facility, cleanup and impacts to...

More Data, Earlier: The Value of Incorporating Data and Analytics...

Incorporating more data earlier in claims lifecycles can help you reduce severity payments by 25%*...

How Many Of Your Clients Are At Risk Of Flood?

Every home is vulnerable to flooding. Learn four compelling reasons why discussing flood insurance with...

Gauging your Business Intelligence Analytics Capabilities and the Impact of...

Big Data, Data Lakes and Data Swamps, How to gauge your company's Big Data readiness....

Extending Contact Center Capabilities Across the Insurance Enterprise

Today advancements in technology are making a big impact on business and society. To yield...

Drug and Alcohol Testing Requirements

In this two-part series, NBIS Risk Management team will break down the requirements to assist...

Why Cyber Liability is Essential for Human Service Organizations

For traditional low-tech operations, information is often compromised in ways that don't involve technology. Access...

A Solution for Large Commercial Habitational Accounts

6 Reasons to place your LARGE Habitational Accounts with Dauntless.

PropertyCasualty360 Daily eNews

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

Advertisement. Closing in 15 seconds.