Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 23rd of May 2018
December 21, 2010

China’s $52bn flood losses largely uninsured

by Gill Montia

Story link: China’s $52bn flood losses largely uninsured

In 2010, China experienced one of its worst seasons of flooding since the Yangtze River burst its banks in 1998 and while economic losses are significant, the impact on the insurance industry is likely to be limited.

So finds Guy Carpenter in a new report released earlier this week.

During the summer, an unusually severe monsoon season left China experiencing record-high water levels at 25 rivers, resulting in flooding that caused an aggregate estimated economic loss of approximately $52 billion.

While the estimate for total insured losses is still being calculated, Guy Carpenter reckons it will only amount to 1% to 2% of total economic losses, due to low insurance penetration levels.

While varying from treaty to treaty, the impact on the majority of non-marine proportional reinsurance treaties is therefore expected to be limited.

Guy Carpenter recently announced that it has been awarded a Wholly-Owned Foreign Enterprise broking license by the China Insurance Regulatory Commission.

Subject to final business registration, the firm will become the first licensed international reinsurance intermediary to operate in the country.

 

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