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Temple Mall North, a shopping centre in Hong Kong’s Wong Tai Sin neighbourhood was hit particularly hard. Rainwater flooded its basement, forcing it to close the whole floor.
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More than 140 injured as Hong Kong faces ‘once-in-500 years’ downpour
More than 140 injured as Hong Kong faces ‘once-in-500 years’ downpour
Claims related to property damage represented 86 per cent of the amount related to the two extreme weather events in September. Nine per cent of the claims were for motor insurance, and the rest was travel insurance, business interruption, and employees’ compensation, the official report showed.
Eric Hui, CEO of Zurich Insurance in Hong Kong, said it was no surprise property insurance generated the most claims, as many shopping malls and property owners take out coverage for their assets against flooding, fire and other types of damage.
“In comparison, motor insurance claims are not that high as many car owners only bought the mandatory third-party liability insurance, which does not cover flooding,” Hui said.
MM Lee, acting head of general business at the Insurance Authority, urged the public to be aware of the benefits of insurance coverage against extreme weather risks.
“With the alarming surge in both the frequency and intensity of extreme weather events, we must not underestimate the devastating impact they impose on our economy and community,” Lee said.
“Insurance can play an important role as a safety net in providing urgent relief and mitigating losses for businesses and individuals in the face of climate hazards. Unleashing the social value of insurance can help support recovery efforts and enhance our community resilience.”
Globally, insurance payouts in the wake of natural catastrophes came to US$50 billion in the first half of this year, according to a report by the reinsurance giant Swiss Re in August.
Payouts related to thunderstorms accounted for 70 per cent of the total, including claims made in Florida and California, while February’s devastating earthquake in Turkey and Syria also generated high payouts, the report said.
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