japan typhoon

Typhoon Shanshan struck Japan’s southern island of Kyushu yesterday and while it is being called one of the strongest storms to hit the country in decades, the ultimate impact to reinsurance markets is expected to be minimal, while catastrophe bonds and other insurance-linked securities (ILS) are expected to be largely or completely unaffected.

Two tropical cyclones on opposite sides of the world will be watched closely by interests in the reinsurance and insurance-linked securities (ILS) market over the coming days, with tropical storm Ernesto seen as a potential hurricane threat to Bermuda and tropical storm Ampil in the Pacific seen as a potential typhoon threat to Tokyo, Japan.

With the development of La Nina conditions anticipated during this summer and its persistence through the autumn, Tropical Storm Risk (TSR) has called for the Northwest Pacific typhoon season to see activity levels around 20% below normal, albeit still with 15 typhoons, 7 of which are forecast to be intense.

In finalising the insurance and reinsurance industry loss estimate for Japanese typhoon Nanmadol, which struck the country in September 2022, catastrophe loss data aggregator PERILS AG has lowered the total to JPY 125.9 billion, while also saying that its data is increasingly being used in Japanese ILW loss triggers.

The Northwest Pacific typhoon season is forecast to see above-normal levels of storm activity in 2023, with 13 intense typhoons predicted by Tropical Storm Risk (TSR).

The insurance and reinsurance industry loss estimate for Japanese typhoon Nanmadol, which struck the country in September 2022, has now been lifted to close to US $1 billion by catastrophe loss data aggregator PERILS AG.

Japanese typhoon Nanmadol, which struck the country in September 2022, is now estimated to have caused a JPY 120 billion insurance industry loss, a 5% increase from the first estimate delivered by PERILS.

The first official estimate of insurance and reinsurance industry losses from Japanese typhoon Nanmadol, which struck the country in September 2022, has been pegged at only close to US $773 million by PERILS AG.

Typhoon Nanmadol’s impact in Japan is likely to be a manageable loss for the Japanese insurance industry, thanks to their robust capital, strong reinsurance programs and the fact loss creep is not expected to be an issue like previous storms that hit the country.

Typhoon Nanmadol’s impacts in Japan are not expected to result in insurance and reinsurance market losses high enough to trouble any catastrophe bonds, according to Plenum Investments.