Two extreme typhoons push claims incurred to HK$1.9b – HKIA

Property damage and motor businesses were the two most affected lines of business.

The Hong Kong insurance industry accumulated total gross incured claims of HK$1.9b from the two extreme weather events in early September 2023, namely Typhoon Saola and a black rainstorm, the Insurance Authority (IA) data showed.

“These figures serve as a stark reminder that having adequate insurance coverage is of utmost importance for individuals and communities alike. To bridge the protection gaps and mitigate potential losses, members of the public should be proactive in taking out sufficient insurance and regularly reviewing them,” said Sally Wan, chairman of the general insurance council of the Hong Kong Federation of Insurers (HKFI).

Property damage and motor businesses were the two most affected lines of business, representing 86% and 9% of the total gross claims incurred, respectively.

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MM Lee, acting head of general business at the IA, emphasised that climate change poses an imminent and universal threat, leading to an alarming surge in the frequency and intensity of extreme weather events. Insurance plays a crucial role as a safety net, providing urgent relief and mitigating losses for businesses and individuals in the face of climate hazards.

“The HKFI remains committed to raising awareness about the significance of insurance in safeguarding properties and communities and will continue working with the IA on this front.” added Wan.