The Hong Kong Federation of Insurers (HKFI) today (14 March 2018) released statistics on claims payments for property damages caused by significant natural hazards in 2017, including typhoons Hato, Merbok, Roke, Pakhar and Khanun. These statistics were collected from over 70 major insurance companies writing “Property Damage” line, and account for close to 80% of the market total.

Table 1: Claims incurred by typhoons in 2017

(Remark: Figures on comprehensive motor and travel insurance are excluded.)

“Within the span of four months between June and October 2017, Hong Kong was hit by five typhoons. Thousands of policyholders claimed for property damage and business disruption. The total claim amount for these lines of business reached HK$935 million, among which close to HK$858 million was caused by the calamitous typhoon Hato, the first Number 10 signal since 2012,” said Ms Teresa Ma, Chairman of the Fire Insurance Association of the HKFI. “This duly reflects the important social function being performed by the insurance industry in alleviating the economic burden of the insured against natural hazards and maintaining socio-economic stability of our community.”

In the wake of the climate change and the increasing severity of tropical cyclones, it is more pressingly important for the public to be properly insured against such kind of catastrophic. Due to increasing public awareness about the importance of taking out insurance against property losses arising from natural hazards, the industry is expecting to see an increase in the number of policies issued to protect households and property.