Gross claims from 2 extreme weather events reach US$234m

The Insurance coverage Authority (IA) yesterday launched claims statistics in relation to the 2 excessive climate occasions in early September 2023 – Storm Saola and a black rainstorm. In keeping with the information collected from the insurance coverage trade, the overall gross claims incurred reached HK$1.9bn ($243m).

Property injury and motor companies are the 2 most affected strains of enterprise, representing 86% and 9% of the overall gross claims incurred respectively.

“Local weather change is an imminent and common risk going through mankind. With the alarming surge in each frequency and depth of maximum climate occasions, we should not underestimate the devastating influence they impose on our financial system and neighborhood,” mentioned Mr MM Lee, appearing head of Normal Enterprise of the IA. “Insurance coverage can play an essential position as a security internet in offering pressing aid and mitigating losses for companies and people in face of local weather hazards. Unleashing the social worth of insurance coverage may also help help restoration efforts and improve our neighborhood resilience.”

Ms Sally Wan, chairman of Normal Insurance coverage Council of the Hong Kong Federation of Insurers (HKFI), mentioned, “These figures function a stark reminder that having ample insurance coverage protection is of utmost significance for people and communities alike. To bridge the safety gaps and mitigate potential losses, members of the general public needs to be proactive in taking out ample insurances and repeatedly reviewing them.

“The HKFI stays dedicated to elevating consciousness concerning the significance of insurance coverage in safeguarding properties and communities and can proceed working with the IA on this entrance.”

Taxi insurance coverage claims statistics

Motor insurance coverage claims incurred from two excessive climate occasions in early September 2023 have reached HK$176m ($22.5m) based on the information from the IA.

Addressing the rumours that insurance coverage turns into invalid throughout typhoons or black rainstorms, the HKFI beforehand clarified that such claims maintain no foundation. The claims information collected from members offers compelling proof towards this false impression, affirming that motor insurance coverage stays in impact even in periods of maximum climate.

In keeping with HKFI statistics, throughout Tremendous Storm Saola and the outstanding rainstorm in early September, the variety of taxi-related claims was a minimum of 21, involving a declare quantity of a minimum of HK$5.4m, as of November. Whereas some might query the explanation why solely 21 claims have been paid, it lies within the low adoption fee of complete motor insurance coverage inside the taxi trade.

Knowledge launched by the IA in 2022 present that out of the 18,800 taxis working in Hong Kong, 4,000 of them had complete motor insurance coverage, roughly 22% of the overall.

In mild of those statistics, the HKFI urges the taxi trade to contemplate the acquisition of complete motor insurance coverage to make sure full safety for his or her autos sooner or later.