typhoon Faxai 2019

The eventual industry loss from typhoon Hagibis could reach the level seen with the other recent Japanese typhoon Faxai, while together the losses they bring to the industry may be enough to accelerate reinsurance rate rises in April 2020, according to KBW analysts.

According to insurance and reinsurance broker Aon, hurricane Dorian’s impacts in the United States are only expected to result in insured losses of up to $600 million, while in Japan the broker says typhoon Faxai will cost re/insurers over $5 billion.

Typhoon Faxai’s impacts on the global insurance and reinsurance industry is expected to push the big four reinsurers beyond their quarterly natural catastrophe budgets for the third-quarter, with Swiss Re anticipated to take the largest hit given its market share in Japan.

Catastrophe risk modelling specialist RMS has estimated that the insurance and reinsurance market faces an industry loss of between $5 billion and $9 billion from recent typhoon Faxai in Japan.

Reflecting on the potential impacts from recent catastrophe events to insurance-linked securities (ILS) and collateralised reinsurance investments, specialist ILS fund manager Twelve Capital warns that together hurricane Dorian and typhoon Faxai might erode some underlying protective layers.

Following the impacts of Typhoon Faxai on Japan, Property Claim Services (PCS) told us that it has designated Faxai as the first new catastrophe loss event it will track and report on under its PCS Japan service.

Domestic insurance industry losses from recent Japanese Typhoon Faxai are anticipated to reach a similar level to 2018’s Typhoon Trami, according to the General Insurance Association of Japan (GIAJ).

Two of the leading Japanese primary insurance carrier groups have revealed an expectation that Typhoon Faxai will cause them each around US $1 billion of gross losses.

Typhoon Faxai is estimated result in an insurance and reinsurance sector loss of as much as $7 billion by catastrophe risk modeller AIR Worldwide.

The Japanese capital city of Tokyo is watching approaching Typhoon Faxai closely, as the compact but powerful typhoon is forecast to come very close to the metropolis and Tokyo could experience significant winds as a result.