AIR Raises Typhoon Krosa Loss Estimates – $200 to $600 Million

AIR Worldwide’s preliminary estimates of insured losses caused by Typhoon Krosa originally assessed the damage in Taiwan (See IJ web site Oct. 11). However, the storm subsequently crossed the South China Sea, and has caused significant damage in the Republic of China.

AIR’s new estimates indicate that total combined insured losses “will be between $200 Million and $600 Million from wind and precipitation-induced flooding.”

“The storm’s wind and rain—which averaged nearly 8 inches in Fujian and Zhejiang—destroyed 3,500 homes, caused extensive flooding of cropland and fish farms, and disrupted transport and air services,” explained Dr. Peter Sousounis, senior research scientist at AIR Worldwide. “Landslides in East China buried houses, blocked roads and derailed trains. In Shanghai, outside the storm’s center, more than 40 flights were delayed and eight canceled at Pudong International Airport due to Krosa’s gale-force winds.”

Chinese officials estimate that damage from the weakened typhoon—which forced the evacuation of more than 1.4 million people, including 500,000 tourists at coastal resorts, and affected 5 million more—exceeds $1 billion.

Dr. Sousounis noted that Krosa was a rather unique typhoon, as it “crossed the Taiwan Strait very slowly just before making landfall along the Fujian/Zhejiang border and then nearly stalled just inland for about twelve hours before quickly accelerating out to sea again. Despite its relatively brief impact, Krosa produced near record amounts of rainfall—up to 60 inches in some parts of Zhejiang and Fujian provinces. These provinces are dominated by low-rise industrial buildings of masonry construction, and AIR expects flooding from Krosa to result in significant insured losses to these structures and their contents. AIR also expects significant damage to low-rise residential structures, though these buildings are not typically insured in this region.”

Source: AIR Worldwide – www.air-worldwide.com