Insured Losses from Typhoon Jebi Estimated at $2.3-$4.5 Billion: AIR

September 9, 2018

Catastrophe risk modeling firm AIR Worldwide estimates that industry insured losses from Typhoo Jebi, which made landfall in Japan on Tuesday, Sept. 4, will be between $2.3 billion (JPY 257 billion) and $4.5 billion (JPY 502 billion).

Typhoon Jebi, which struck the island of Shikoku on Sept. 4 at the equivalent of a Category 3 hurricane, was the strongest typhoon to make landfall in Japan in 25 years. It rapidly made a second landfall on the main island of Honshu striking the major urban centers of Kobe and Osaka with winds which, flipped vehicles, ripped cladding off buildings, and downed trees and power lines.

Storm surge inundated parts of Osaka Prefecture, with a potentially record-breaking storm tide reported in that area and intense rainfall accompanied the storm, with a recorded rate of 100 mm (3.9 inches) of rain in an hour at the tourist city of Kyoto, and more than 500 millimeters (nearly 20 inches) of rain total was measured in some areas.

The storm maintained its typhoon strength over the Sea of Japan as it tracked north along the coast, only weakening to tropical storm intensity early Wednesday, local time, as it passed the island of Hokkaido. Wind and torrential precipitation continued to affect the western coast up to Hokkaido overnight.

Along with major damage to buildings and infrastructure, there has been significant business interruption, particularly to manufacturing and tourism, with widespread shipping and transportation impacts. Kansai Airport plays a significant shipping role in the region, and the closure could disrupt supply chains.

AIR’s modeled insured loss estimates include: Insured damage to property (residential, commercial, industrial, and agricultural/mutual), both structures and their contents, and automobiles.

AIR’s modeled insured loss estimates do not include: losses from precipitation-induced flood; landslide; losses to land or infrastructure; construction or erection all risks; marine hull, or marine cargo lines of business; business interruption losses, loss adjustment expenses or increased materials and services cost from demand surge.

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