Catastrophe modeler Eqecat says the insured losses from TyphoonHaiyan are likely not to exceed $100 million despite the stormpossibly being the deadliest to ever hit the Philippines.
|Although damage is extensive to the most affected parts of theisland country, much of the areas are less urbanized and insurancepenetration is low, reports Eqecat. About 90 percent ofinfrastructure is damaged but this is also not typically insured.Eqecat says only about 15-20 of property insurance policies, of thelow percentage with them, are insured against typhoon risk.Standard homeowners policies exclude flood coverage.
|Haiyan was a Category 5 to 4 typhoon with sustained winds of190-plus mph as it went over the Visayan Islands before hittingVietnam and China as a weaker storm. Insured losses in thesecountries are expected to be minimal, says the modeler.
|According to A.M. Best, another preliminary estimate puteconomic losses at $14 billion and insured losses at $2billion.
|The insurance rating agency says losses from Haiyan, known asYolanda in the Philippines, are not expected to exhaust thereinsurance capacity in place. Insured losses will be spread overmany segments, including personal lines, fire & property, andmarine hull.
|A.M. Best says it “believes the frequent and intense naturalcatastrophes in the Philippines this year will accelerate thediscussion of a natural catastrophe scheme and micro insurance inthe country.”
|Eqecat adds there is a chance of a of “high-value,single-facility insured loss” from the mammoth storm. The provinceof Cebu is the most populated in the Visayan Islands and is thefurniture capital of the country, says Eqecat. Other exportsinclude light manufacturing.
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