Hong Kong insurers are likely to face smaller claims for damages related to Typhoon Wipha than the previous major hurricane that hit the city two years ago because the impact was less severe this time, according to industry analysts.
The local unit of Zurich Insurance and some general insurers reported fewer claims on Monday, compared with submissions for compensation related to Typhoon Saola in September 2023, company executives said.
The city raised the typhoon warning to its highest level No. 10 for almost seven hours on Sunday when Wipha struck. In total, 33 people were injured and authorities reported 711 fallen trees and flooding cases.
“Based on these figures, the payouts triggered by Wipha are expected to be about half of those resulting from Saola,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International. “The economic damage caused by Wipha is also expected to be less severe.”
The Hong Kong Observatory also raised the No.10 signal when Saola approached the city two years ago. Some 86 people were injured and there were 1,500 reports of fallen trees and 21 flooding cases.
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Typhoon Wipha: Hong Kong emerges with dozens hurt, tens of thousands of travellers frustrated
Typhoon Wipha: Hong Kong emerges with dozens hurt, tens of thousands of travellers frustrated
Insurers paid out HK$361 million (US$46.3 million) in claims related to Saola, the fourth highest in the local insurance history. They exceeded the HK$325 million payouts related to the outbreak of severe acute respiratory syndrome or SARS in 2003, according to the Insurance Authority.
