SAVA Re expects payments for claims arising from Typhoon Hagibis to exceed EUR 5 million

5 December 2019 — Daniela GHETU
In October 2019, Japan was hit by Typhoon Hagibis, one of the worst storms in the region in decades. According to latest estimates, the claims payable by Sava Re under its reinsurance treaties will exceed EUR 5 million.

One loss event of EUR 5 million has already been factored into the net profit target of the Sava Insurance Group for 2019. Assuming there are no further claim events of a similar magnitude, the Sava Insurance Group can still achieve its profit target for 2019.

Catastrophe risk modeling company RMS has estimated insured losses stemming from Typhoon Hagibis in Japan will be between USD 7 billion to 11 billion, while AIR Worldwide's estimation stays in the range of USD 8 billion to 16 billion, with more than half of the losses due to inland flooding.

Typhoon Hagibis made landfall with 1-minute sustained wind speeds of about 145 km/h (90 mph), the equivalent of a Category 1 hurricane, on the main Japanese island of Honshu. Unprecedented rainfall followed. A wide swath of Honshu just outside the Tokyo metro area received between 250 mm and 500+ mm (10 and 20+ inches) of rain; the resort town of Hakone, where 939.5 mm (37 inches) of precipitation was recorded, broke the calendar-day rainfall record for all of Japan. Much of central and eastern Japan experienced severe flooding and landslides; power outages and travel disruption were widespread.

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