Floods in China during June are expected to have caused a minimum of $4 billion in damages, according to Aon Benfield’s Impact Forecasting Global Catastrophe Report.
The report said that monsoon rains led to significant flooding across central and southern China, killing more than 130 people.
The most damaging floods occurred in the Yangtza River basin totalling over $4.4 billion in damages, according to China’s Ministry of Civil Affairs. However, given low penetration levels, insurance losses are expected to be relatively low.
Meanwhile in the US, Virginia experienced catastrophic flooding, affecting 5,500 homes and 125 businesses. Total economic losses are expected to reach hundreds of millions of dollars, while insured losses are expected to be mitigated by the extensive property coverage provided by the US government’s National Flood Insurance Program.
Adam Podlaha, global head of Impact Forecasting, said: “With the continued expectation of a transition towards La Niña in the H2 2016, the month of June provided a potential precursor to some of the global impacts typically experienced during such an El Niño–Southern Oscillation phase.”
“The enhanced seasonal monsoon rainfall across China and elsewhere in Asia was amplified as flooding caused considerable property and agricultural damage. With catastrophe models becoming more prevalent in Asia-Pacific, the insurance industry is better able to provide a clearer understanding of the financial risks that the flood peril increasingly poses.”
