NU Online News Service, Sept. 30, 1:40 p.m. EDT
After making two landfalls on China, insured losses from Typhoon Nesat are expected to remain below $50 million due to low levels of damage and low insurance penetration, according to catastrophe modeler Eqecat.
Catastrophe modeler AIR Worldwide says Nesat made landfall as a moderate Category 1 storm on the northeastern corner of the island of Hainan on Sept. 29, then turned north and hit the western coast of the Leizhou Peninsula in Guangdong province.
AIR says single-family homes in the regions where Nesat made landfall are primarily of masonry construction. Apartment buildings are made largely of reinforced concrete and confined masonry, while commercial and industrial structures are largely made of reinforced concrete, while older structures are of unreinforced masonry and some confined masonry. AIR notes that, at Nesat's wind speeds, there may be some isolated instances of minor non-structural damage to well-constructed engineered commercial and apartment buildings.
“Insurance penetration for typhoons is quite low in China, particularly for residential risks, and insurance penetration varies by province, Hainan having one of the lowest rates in China,” says AIR, noting that when there is coverage, wind and flood generally are covered together in the same policy.
Nesat is the 17th typhoon of the 2011 season, and the strongest to strike China this year, AIR says.
Three days before striking the regions in China, Nesat made landfall in the Philippines as a Category 2 storm on northernmost Luzon, causing extensive damage, AIR says.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
