The total insurance claims due to the heavy flooding that inundated Hong Kong recently may be higher than those caused by Typhoon Mangkhut.
Hong Kong businesses and vehicle owners might face higher insurance premiums in future, with claims after massive flooding in the territory on 8 September likely to top the HK$3.1bn ($395m) paid out in 2018 for damages caused by Typhoon Mangkhut, reported South China Morning Post quoting industry executives.
Asia Insurance CEO Ms Winnie Wong said, “Whenever a huge number of insurance claims is made for a natural catastrophe, the reinsurance companies will increase the charge for reinsurance with the direct insurers and, hence, the cost of insurance is set to rise next year.”
Ms Wong said she expected a record-high number of claims from car owners, as well as owners of shopping centres and other properties.
“It is highly likely that the total claims for car insurance, property insurance and business interruptions due to the black rainstorm and Super Typhoon Saola before that might be higher than those caused by Typhoon Mangkhut.”
The 8 September floods were because of Hong Kong’s heaviest rainstorm since records began in 1884 that inundated streets and subway stations, forcing the stock market to scrap trading that day. The downpour was caused by the remnants of Typhoon Haikui.
