Extreme weather events demonstrate the social role of insurance in enhancing community resilience
4 December 2023
The Insurance Authority (IA) today (4 December 2023) released claims statistics in relation to the two extreme weather events in early September 2023 - Typhoon Saola and a black rainstorm. According to the data collected from the insurance industry1, the total gross claims incurred reached $1.9 billion2.
Property damage and motor businesses are the two most affected lines of business, representing 86% and 9% of the total gross claims incurred respectively.
| Property Damage and Business Interruption | |||
|---|---|---|---|
| No. of Claims Received |
Property Damage |
Business Interruption | Total Gross Claims Incurred ($'000) |
|
Gross Claims Incurred ($'000) |
|||
|
6,722 |
1,638,107 | 1,821 | 1,639,928 |
| Employees' Compensation (EC), Motor and Travel | ||||
|---|---|---|---|---|
|
No. of Claims Received |
EC |
Motor | Travel |
Total Gross Claims Incurred ($'000) |
|
Gross Claims Incurred ($'000) |
||||
|
8,196 |
11,228 | 176,035 | 25,662 | 212,925 |
“Climate change is an imminent and universal threat facing mankind. With the alarming surge in both frequency and intensity of extreme weather events, we must not underestimate the devastating impact they impose on our economy and community,” said Mr MM Lee, Acting Head of General Business of the IA. “Insurance can play an important role as a safety net in providing urgent relief and mitigating losses for businesses and individuals in face of climate hazards. Unleashing the social value of insurance can help support recovery efforts and enhance our community resilience.”
“These figures serve as a stark reminder that having adequate insurance coverage is of utmost importance for individuals and communities alike. To bridge the protection gaps and mitigate potential losses, members of the public should be proactive in taking out sufficient insurances and regularly reviewing them,” said Ms Sally Wan, Chairman of General Insurance Council of the Hong Kong Federation of Insurers (HKFI). “The HKFI remains committed to raising awareness about the significance of insurance in safeguarding properties and communities and will continue working with the IA on this front.”
Ends
Notes:
1 Data collected from 104 relevant authorized general insurers in Hong Kong.
2 $361 million incurred by Typhoon Saola and $1.54 billion incurred by the black rainstorm (data as at 30 September 2023).