67% of flood damage is insured in U.S., 2% in China

China sees $33B in economic damage from rains, Yangtze flood

July was a big month for nat cats all around the world, from North America’s severe thunderstorms to fatal flooding along the Yangtze River in China, Impact Forecasting reports.

Read: Global insured losses hit $30B in the first half of 2016: Impact Forecasting

In the U.S., two thirds of recent economic damage from convective storms and flooding was covered by insurance ($1 billion of $1.5 billion).  In China, on the other hand, only two per cent of flood damage from torrential rainfall and flooding on the Yangtze was covered ($1 billion of $33 billion). More than 20 Chinese provinces were affected by the floods, which killed 764 people, destroyed 800,000 structures and damaged 18 million acres of cropland. Most of the claims are from lost agriculture.

“While it was expected that China would see above normal rainfall during the peak monsoon months with such a strong El Nino, the intensity and scope of what transpired from the associated floods were at a magnitude not seen in nearly two decades,” Adam Podlaha, global head of Impact Forecasting, said in a release. “The flood peril is one which is becoming better understood by catastrophe modelers, and the industry is better prepared than ever to help create awareness of the risks associated with such large events.”

Read: Farmers in China get access to parametric insurance program

Other catastrophes in July included

  • Thunderstorms and floods in Alberta, Saskatchewan, Manitoba, Ontario and Quebec ($100 million in economic and insured losses)
  • Super Typhoon Nepartak in Taiwan and China ($1.5 billion in economic losses)
  • Thunderstorms and flash flooding in South Africa ($145 million in insured losses)
  • Tropical Storm Mirinae in southern China and northern Vietnam ($20 million in economic losses)
Copyright © 2017 Transcontinental Media G.P.
Transcontinental Media G.P.