Insured losses from Typhoon Dujuan not significant: AIR

Insured losses are not expected to be significant from the typhoon that hit both Taiwan and China this week, according to catastrophe modelling firm AIR Worldwide.

Typhoon Dujuan made landfall on northeast coast of Taiwan, near Nan’ao Township in Yilan County, late afternoon on Monday, September 28, at approximately 09:00 UTC.

The intense storm, which is known as Typhoon Jenny in the Philippines, saw gusts as strong as 246 km/h (153 mph). It resulted in power outages for half a million households, disrupted travel, and impacted some water treatment facilities.

However, AIR claimed that losses wouldn’t be too high due to the fact that the storm made landfall in a sparsely populated region of Taiwan and lost strength as it passed over a mountainous region.

“Although Dujuan made landfall in a densely populated region of China, take-up rates are low in the area impacted and the storm had weakened substantially before it reached the coast,” said AIR.

According to AIR, The north-eastern portion of Taiwan, where the capital Taipei is located, is likely to be most affected from the high winds and heavy rain of Typhoon Dujuan because of the concentration of exposure there.

Most buildings in the country are fairly new, however, and recent residences tend to be high-rise complexes built in clusters, predominantly reinforced concrete and many with ceramic façades (although some are steel). Because Taiwan’s residential buildings usually have commercial establishments on the first floor, the vulnerability of residential and commercial lines of business very similar.

According to AIR, in densely populated coastal south-eastern China, many homes and businesses are at risk from typhoons and damage from flooding from storm surge and/or precipitation is a major concern.

Flooding is a major concern for both residences and business from Typhoon Dujuan because of the heavy, multi-day rainfall. Insurance take-up for typhoon coverage is low in China, particularly for residential risks. When there is coverage, wind and flood generally are covered together in the same policy.

AIR will continue to monitor the situation and will provide updates as warranted.