Typhoon Sarika, which brought Category 3 winds to the Philippines as it made landfall in eastern Manila on Sunday morning local time, could make a second landfall on Hainan Island, China, and a third landfall in northern Vietnam if it continues to move west.
According to catastrophe modelling firm AIR Worldwide, typhoon and flood damage are usually covered together in the Philippines and are offered under separate fire policies with named perils extensions.
AIR said that reports of significant wind damage have been relatively scarce, but the impacts of flooding on exposures will continue to surface, and that landslides and flash floods could cause significant water and structural damage.
AIR does not expect losses to be significant from Sarika, given that insurance penetration is typically no more than 10 to 20 percent.
“Sarika weakened while crossing mountainous Luzon; further weakening was recorded as it moved into the South China Sea. As of 12:50 UTC on October 17, 2016, the Japanese Meteorological Agency reported that Typhoon Sarika was moving west-northwestward at 20 kilometres per hour with maximum sustained winds of ~143 km/h and a minimum central pressure of 965 millibars,” said Peter Sousounis, assistant vice president and director of meteorology at AIR Worldwide.
“Leading up to landfall in the Philippines, the town of Virac, capital of the province of Catanduanes, received almost 22 inches of rain between Friday and Saturday; the nearby town of Daet received more than 21 inches of rain in the same time period.”
Typhoon Sarika left more than 246,000 residents without power and telephone service due to strong winds and flooding, and more than 400 had to be evacuated.
According to AIR, some roofs have been ripped off of multiple houses, and at least 20 houses were completely destroyed.
Sousounis added: “Typhoon Sarika is expected to continue on its track west-northwestward across the South China Sea, further weakening as it moves toward its second landfall in Hainan Province, China, on Tuesday, October 17, 2016, as a Category 1-equavelant storm.”
Typhoon Sarika, AIR Worldwide, Catastrophe, Asia Pacific