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The Actuary The magazine of the Institute & Faculty of Actuaries

Typhoon Haiyan insured losses estimated at up to $700m

AIR Worldwide has estimated insured losses from super typhoon Haiyan at between $300m to $700m.


Photo: Shuttershock

The catastrophe modelling firm said the storm could have inflicted between $6.5bn and $14.5bn in total damages to residential, commercial and agricultural properties.

AIR Worldwide’s senior principal scientist Peter Sousounis, said: ‘Super typhoon Haiyan made landfall on the southern tip of Samar Island early morning local time on November 8 as one of the most powerful tropical cyclones in modern record-keeping. The storm maintained impressive wind speeds as it traversed the Philippines before exiting over the cooler waters of the South China Sea, where it weakened as it headed northwest.’

According to the firm, the storm has left more than 2,000 people dead and displaced more than 650,000 people.

To produce loss estimates for Haiyan, AIR used information from the Japan Meteorological Agency to model several different scenarios that reflect a range of radius of maximum wind values.

But the firm said the range of the insured losses reflected uncertainty in the meteorological parameters associated with the event. There is additional uncertainty in the insurance penetration for the Philippines.