japan typhoon

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.

The eventual losses from typhoon Nanmadol in Japan is likely to be a significant event for Japanese primary insurers, Twelve Capital believes, while the investment manager also notes that some reinsurance layers are likely to trigger on the back of the storm.

Typhoon Nanmadol made landfall in southwest Japan in the Kagoshima region of Kyushu yesterday. While winds were reported as high as 150 mph, in terms of gusts, Nanmadol noticeably weakened, with rainfall, flooding and landslides appearing the main threats.

Typhoon Nanmadol is a potentially significant Japanese industry loss threat for insurance and reinsurance market interests, while meteorologists are warning it could be more impactful than recent damaging typhoons Jebi and Hagibis.

Update: See our more recent article on typhoon Nanmadol. While tropical storm Fiona may be concerning some, given the uncertainty in its eventual path, on the other side of the globe typhoon Nanmadol is seen as a relatively significant Japanese loss threat by insurance and reinsurance market interests.

The Northwest Pacific typhoon season, which is one of the peak zone perils for reinsurance, catastrophe bond and other insurance-linked securities (ILS), is forecast to see activity levels roughly 20% below-normal, as the effects of La Niña are increasingly expected to last through summer and into Autumn.