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Hong Kong insurers could face record high claims as a host of typhoons, rainstorms inflict damage on the city

  • Hong Kong has experienced three typhoons and two rainstorm warnings over the past two months, which has spawned a surge in insurance claims
  • ‘Our industry is resilient and able to absorb these severe weather events’, Insurance Authority senior executive tells the Post

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Sandbags have been set up outside Temple Mall in Wong Tai Sin. Photo: Edmond So

Insurance claims related to natural disasters in Hong Kong are expected to surge to a record high this year after the recent sharp rise in the number of typhoons and rainstorms, according to analysts.

“Hong Kong has experienced three typhoons and two black rainstorms over the past two months, which is much more frequent than the previous years when usually we have only one super typhoon a year,” said Kenrick Chung, director of Ben. Excellence Consultancy, an insurance broker in Hong Kong.

The city grappled with Typhoon Koinu on Monday, which saw reports of fallen trees, landslides and flooding cases after strong winds led to the No. 9 weather signal being hoisted for a few hours on Sunday. The observatory also announced the black rainstorm warning signal on Monday morning.
The latest typhoon emerged a month after the city recorded its longest black rainstorm warning ever, which Hong Kong officials described as a “once-in-500-years” event. That tragedy left one person dead and 117 injured, with flooding on the streets and shopping centres wreaking financial damage on the city. A week before that, Super Typhoon Saola hit Hong Kong causing serious damage to urban infrastructure.
Hong Kong Observatory issued No. 3 warning as Typhoon Koinu nears. Pictures taken at Tsim Sha Tsui. Photo: Sam Tsang
Hong Kong Observatory issued No. 3 warning as Typhoon Koinu nears. Pictures taken at Tsim Sha Tsui. Photo: Sam Tsang

“Many insurance companies have been busy handling claims from Super Typhoon Saola and the flooding from the rainstorms last month,” said Chung. “Now, there will be more claims arising from the damage caused by Typhoon Koinu. We are likely going to see a record high in insurance claims for cars, property damage and business interruptions due to these natural catastrophes.”

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