HK's losses from Typhoon Mangkhut to be bigger than Typhoon Hato

Published: September 21, 2018 20:33:25


HONG KONG: The overall economic impact of Typhoon Mangkhut, the most intense storm to hit Hong Kong since records began, is expected to be "significantly" higher than that caused by Typhoon Hato last year, reports www.straitstimes.com.

As the city recovers from Mangkhut, at least one reinsurer said the damage this year could be 10 to 15 per cent more than the overall economic impact of a typical T8 signal warning typhoon on Hong Kong's gross domestic product (GDP), which is HK$4.29 billion (S$750 million) per day.

Mr Dylan Bryant, head of north Asia at Swiss Re Corporate Solutions said: "Data from Hong Kong Federation of Insurers on Hato claims shows 2,000 total claims of HK$655.7 million (property and business) and HK$202.2 million (construction). This was data collected from 45 insurers representing 86 per cent of market share."

As claims flow in, Mr Bryant said the final figure will vary by industry.

But he noted that the total amount would be higher based on the strength of Mangkhut - a T10, the highest on the city's typhoon alert scale - and also the number of days businesses had to cease operations.

"As an example, if you consider the fact that Macau's casino revenue from last year was HK$217 billion, shutting the casinos for the first time over the last two days already translate into significant losses in the millions for the gaming and leisure industry in Macau," Mr Bryant added.

 

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