Flooding in western Japan could cost $4bn of insured losses, according to catastrophe modeller AIR Worldwide
Flood damage in western Japan is expected to be the country’s biggest catastrophe since 2011’s Tohoku Earthquake.
Catastrophe risk modeller AIR Worldwide has has put an insured loss estimate of between $2.6bn and $4bn on the floods.
The Japan Meteorological Agency (JMA) described it as being “at a level we have never experienced”.
In just a few days, parts of Japan received four times the rainfall typically expected in the whole month of July, according to the JMA
Successive heavy downpours from June 28, including several days of record-breaking rainfall until July 8, led to widespread inland flooding in more than 30 prefectures across western and south-central Japan.
“In addition to major damage to buildings and infrastructure, there was considerable business interruption, particularly to auto and electronics manufacturers.
“With at least 200 lives lost, this was Japan’s deadliest flood since 1982 and the country’s deadliest natural catastrophe since the 2011 Tohoku earthquake,” said a statement from AIR Worldwide.
More than 46,000 residential buildings were destroyed, damaged, or inundated, according to data issued on August 8 by Japan’s Fire and Disaster Management Agency (FDMA).
AIR noted that its modelled insured loss estimates exclude: landslide; losses to land; losses to infrastructure; losses to CAR/EAR, marine hull, or marine cargo lines of business; business interruption losses; loss adjustment expenses; and demand surge for materials and services.