japan typhoon

Reinsurance market sources are suggesting that the industry loss from typhoon Jebi in Japan will get closer to $12 billion, as loss creep continues from what is the most costly typhoon event to ever hit the country.

Typhoon Jebi is estimated to have caused an insurance industry loss of $10 billion by Property Claim Services (PCS), with the potential for further loss creep apparent, according to Tom Johansmeyer, Co-Head PCS.

Typhoon Jebi, a storm that made landfall in Japan on September 4th 2018, has become an outlier for loss creep in the country, with the insurance and reinsurance industry loss now said to have surpassed $10 billion.

The industry loss warranty (ILW) market is waiting nervously for confirmed estimates of industry losses to emerge for a number of recent catastrophe events around the globe, with certain trigger points on-watch and further ILW losses possible in the coming weeks.

Typhoon Jebi has now officially become the largest Japan typhoon related insurance and reinsurance market loss on record, as the amount of insured claims paid for the storm have now reached almost $5.2 billion.

Typhoon Jebi’s impacts in Japan were always going to be a catastrophe loss event that would drive a modest amount of claims to some ILS funds and collateralised reinsurance vehicles, but with estimates rising for the industry impact, the expectation of ILS market losses is increasing as well.

Typhoon Trami will be the latest storm this typhoon season to impact Japan, as the Category 3 equivalent typhoon heads for the Ryukyu islands and Okinawa, after which it will hit the Japanese mainland.

Catastrophe risk modelling company RMS has put out an estimate of the insurance market loss from typhoon Jebi’s impacts in Japan, saying it could be as much as $5.5 billion and that figure doesn’t include everything.

Typhoon Jebi’s impacts on Japan are expected to result in a loss to the insurance industry of up to $4.5 billion by catastrophe risk modeller AIR Worldwide, an amount which has the potential to cause some impacts to reinsurance interests.

Japan and its insurance industry may be facing billion of dollars of losses from the impacts of yesterday’s magnitude 6.7 earthquake in Hokkaido and recent typhoon Jebi, which was the strongest storm to hit the Japanese mainland in 25 years.