Typhoon Mangkhut, which made landfall in China’s Guangdong Province on September 16 as a Category 3 hurricane, is estimated to rake in insured losses of no less than US$1 billion.
The approximation by catastrophe risk modelling firm AIR Worldwide covers mainland China, Hong Kong, and Macau. The Verisk business pegged industry insured losses to a maximum of US$2 billion.
“In the resort city of Macau, the largest gambling hub in the world, all casinos were ordered to close for the first time ever,” noted AIR Worldwide. “Power was cut to about 20,000 households in low-lying areas and the inner harbor.
“Extensive flooding impacted the area, rising above head height in some locations and damaging buildings and contents.”
The modelled insured loss estimate includes insured wind and precipitation-induced flood damage to property in mainland China and insured damage to automobiles in Hong Kong and Macau. Losses to infrastructure, crops, and livestock are not included.
Also excluded are losses resulting from physical failure of flood defences and landslides; losses from business interruption in mainland China; and losses from hazardous waste clean-up, vandalism, or civil commotion.