Industry insured losses from the flooding in western Japan caused by excessive rainfall from June 28 to July 8, 2018, will be between JPY284 billion (US$2.6 billion) and JPY423 billion (US$4.0 billion), according to Boston-based catastrophe modeling firm AIR Worldwide.
Record-breaking rainfall led to widespread inland flooding in more than 30 prefectures across western and south-central Japan, said AIR, quoting an official at the Japan Meteorological Agency (JMA) who said the precipitation was “at a level we have never experienced.”
Numerous rivers, streams burst their banks, buildings and infrastructure saw major damage and there was considerable business interruption, particularly to auto and electronics manufacturers, said AIR.
More than 46,000 residential buildings were destroyed, damaged, or inundated, added AIR, quoting data issued on August 8 by the Fire and Disaster Management Agency (FDMA).
“With at least 200 lives lost, this was Japan’s deadliest flood since 1982 and the country’s deadliest natural catastrophe since the 2011 Tohoku earthquake,” said AIR.
In just a few days, parts of Japan received four times the rainfall typically expected in the whole month of July, according to the JMA. Local reports state that new records for rainfall during 24-, 48-, or 72-hour periods were set in 93 locations.
AIR said its modeled insured loss estimates include:
- Insured damage to property (residential, commercial, industrial, and agricultural/mutual), both structures and their contents, and automobile.
AIR’s modeled insured loss estimates do not include:
- Landslide
- Losses to land
- Losses to infrastructure
- Losses to CAR/EAR, marine hull, or marine cargo lines of business
- Business interruption losses
- Loss adjustment expenses
- Demand surge. Demand surge is the increase in costs of materials, services, and labor due to increased demand following a catastrophic event. AIR said demand surge can be applied by its software users who want to account for this variable.
Source: AIR Worldwide
Related:
- July’s Droughts, Wildfires, Floods Caused Billions in Global Economic Losses: Aon
- Historic Rainfall, Floods in Japan Kill More Than 100; Some Factories Halt Operations
Topics USA Profit Loss Flood Japan
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