General Insurance Article - Typhoon Hagibis in Japan could lead to losses of USD7bn

 This estimate includes property damage and business interruption caused by typhoon wind and typhoon flood to the following (includes both the private and kyosai/mutual markets):

 • Residential
 • Commercial
 • Industrial
 • Marine
 • Automobile lines

 Additional factors for post-event loss amplification and non-modeled losses include demand surge and claims inflation impacts associated with overlapping of areas impacted by the recent Typhoon Faxai, and widespread damage to infrastructure.

 The industry loss estimate is informed based on analysis of the RMS reconstructed wind field and flood footprint using the RMS® Japan Typhoon HD model. In addition, the estimate includes additional factors based on data and insights from field reconnaissance by RMS modelers. The circumstances of this event–chiefly,

 Typhoon Faxai hitting one month earlier and the ensuing widespread flooding–make Hagibis a complex event to model. Three RMS teams surveyed affected areas over two weeks to better understand this event. Field reconnaissance provides factual details about the geographical extent and severity of hazard and impact that cannot be ascertained readily through photographs of the damage circulated in the media.

 The combined losses from the two recent storms, Typhoon Hagibis and Typhoon Faxai (between USD $5 billion to $9 billion), could rival insured losses from Typhoon Jebi that struck Japan last year.