Tag Archives: Thai Floods

A.M. Best on Thai Flood Losses

The Thailand floods could be among the top five costliest insured loss events of the past 30 years, according to a briefing from ratings agency A.M. Best.

Insurers’ estimates of industry wide losses from the Thailand floods have increased to $15 billion  Ã¢â‚¬“ an increase of more than 50% since its last briefing on the event, A.M. Best says.

Such a loss would place the Thai floods in a tie for the fifth costliest insured loss event in the past 31 years.

Here’s an excerpt from  Best’s briefing:

Aon Benfield estimated the floods in Thailand have damaged or destroyed more than 4 million homes, businesses and manufacturing facilities. This has generated structural damage four times greater than what resulted from Japan’s earthquake and tsunami in March 2011, but only half of the total insured loss due to a low rate of insurance adoption.†

A.M. Best also says that it will take the industry significant time to reconcile the true impact of the floods because of a general lack of data on Thai exposures, the length and magnitude of the floods, and the complexity of business interruption and contingent business interruption (CBI) claims.

Another excerpt:

The four-month long deluge of flooding in Thailand, labeled the costliest natural disaster in Southeast Asia, delivered a shocking and unexpected blow to the global insurance industry in the form of an un-modeled event. Reinsurers no longer will spare Thailand from consideration as a risk for natural catastrophes, resulting in significant changes to flood insurance policies, including increased pricing and decreased coverage.†

A.M. Best concludes that it expects to see additional upward revisions to initial loss estimates and feels that the amount of the total insured loss could change.

More on this story at Insurance Journal.

Thai Floods: Insured Losses And Social Media Updates

Thailand has seen its worst flooding in decades over the last few months.  At least  400 fatalities have been attributed to the floods in Thailand and neighboring Cambodia and Vietnam, while severe damage has been caused across the country. Floodwaters have now reached the capital Bangkok.

Insured losses from the Thai floods are likely to run into billions of dollars, much of which will be funded by international insurers and reinsurers, according to the Wall Street Journal.

Risk Management Monitor reports on the significant impact the Thai floods are having on the global supply chain.

Meanwhile, a post by the Wall Street Journal’s South East Asia Real Time blog observes that traffic of online social media and other websites has surged during the Thai flood disaster.

It reports:

The number of Twitter users in Thailand has climbed 20 percent to 600,000 in the past two months when the impact of the floods were just starting to bear down on the kingdom, according to local media reports. Monthly growth for social media usage is usually in the single-digits. News websites and blogs, meanwhile, have also seen a surge in traffic.†

The WSJ gives an overview of the key Twitter accounts providing flood updates, but it goes on to point out that not everyone is pleased that social media is increasingly the medium of choice for disaster updates.

The comments are interesting given that  a survey from the American Red Cross last year found that web users increasingly rely on social media to seek help in a disaster or emergency, and expect first responders to be listening.

Check out Boston.com’s Big Picture for a series of powerful images of the flood waters that have inundated northern Thailand and now reached Bangkok.

Check out I.I.I. facts and stats on global catastrophes.